Philanthropy tax concession change

Philanthropy tax concession change

TAX concessions relating to philanthropy will be widened to increase the flexibility available to charitable funds, ancillary funds and prescribed private funds.

Under current law the income tax exemption for charitable funds is only available where those funds distribute solely to charities located in and pursuing their purposes in Australia or charities that are also deductible gift recipients.

As a result of the pending change, charitable funds will now also be able to access the exemption where they distribute all of their funds to a combination of these types of charities.

The Federal Government is also providing an income tax exemption to ancillary funds and prescribed private funds where these funds distribute solely to deductible gift recipients that are income tax exempt.

Both changes will come into effect at the start of the income year following the date the bill introducing those changes receives Royal Assent.

Minister for Revenue Helen Coonan said the measures would help lead to greater levels of giving in Australia.

"These changes flow from public submissions received by the Prime Minister’s Community Business Partnership," she said.