Commonwealth Numbered Regulations - Explanatory Statements

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INCOME TAX ASSESSMENT AMENDMENT REGULATIONS 2002 (NO. 2) 2002 NO. 65

STATUTORY RULES 2002 No. 65

Issued by authority of the Minister for Revenue and Assistant Treasurer

Income Tax Assessment Act 1997

Income Tax Assessment Amendment Regulations 2002 (No. 2)

Section 909-1 of the Income Tax Assessment Act 1997 (the Act) provides that the GovernorGeneral may make regulations prescribing matters that the Act requires or permits to be prescribed, or are necessary or convenient to prescribe for carrying out or giving effect to this Act.

The purpose of the regulations is to amend the Income Tax Assessment Regulations 1997 to list certain funds as prescribed private funds so that gifts made to these funds are tax deductible.

Section 995-1 of the Act defines a "prescribed private fund" as a fund that is prescribed by the Regulations for the purposes of the definition but does not include any fund that has been declared by the Treasurer, in writing, not to be a prescribed private fund.

Item 2 in the table to section 30-15 of the Act provides that a gift made to a prescribed private fund is deductible where the fund is established and maintained under a will or instrument of trust solely for

(a) the purpose of providing money, property or benefits to a fund, authority or institution gifts to which are deductible under item 1 of this table and for any purposes set out in the item of the table in Subdivision 30-B that covers the fund, authority or institution; or

(b) the establishment of such a fund, authority or institution.

Subdivision 30-B of the Act lists the tables of recipients for deductible gifts.

Regulation 995-1.02 lists the following funds as prescribed private funds for the purposes of section 995-1 of the Act. Each of the funds listed is a prescribed private fund on and from the date of effect specified in the regulations. Each fund is established and maintained for the purpose of providing money, property or benefits to a fund, authority or institution that is listed either by name or by type in a table to Subdivision 30-B of the Act.

Name of fund	Date of effect
Hunter Hall Charitable Fund	16 August 2001
The International Children's Foundation	23 August 2001
The Brian and Maxine Newell Prostrate          Cancer Research Foundation	17 September 2001
Barrie Bailey Foundation	3 October 2001
The Rotary Club of Hillarys Community Foundation	3 October 2001
The Western Australian Club Foundation	3 October 2001

The sole purpose of each Fund is to provide money, property or benefits to or for eligible charities, or for the establishment of eligible charities, as the Trustee decides.

'Eligible charity' is defined in each Fund's Trust Deed to mean a fund, authority or institution which is charitable at law and gifts to which are deductible under item 1 (a fund, authority or institution covered by an item in any of the tables in Subdivision 30-B) of the table to section 3015 of the Act.

The amending regulations have effect from dates approved by the Government and shown above in the table. While these are earlier than the date of gazettal for each fund, subsection 48(2) of the Acts Interpretation Act 1901 is not contravened. Subsection 48(2) prohibits the retrospective operation of regulations that adversely affect the rights of, or impose liabilities upon, a person. The regulations are beneficial to the funds concerned and taxpayers making donations to those funds.

The regulations commenced on gazettal.

Details of the regulations are as follows:

Regulation 1: Names the regulations.

Regulation 2: Provides that the regulations commenced on gazettal.

Regulation 3: Provides that Schedule 1 amends the regulations to list certain funds as prescribed private funds.

Schedule 1:       This inserts the names of certain funds as prescribed private funds (items 24 to 29 inclusive) into Regulation 995-1.02 for the purposes of Division 30 of the Act.