15 Sep 09 ATO information on Private ancillary funds legislation
In Non-Profit News Service No 0253, the ATO noted the passing of Tax Laws Amendment (2009 Measures No 4) Bill 2009 on 10 September 2009.
The Bill amends the tax law to improve the integrity of prescribed private funds (PPFs). The amendments among other things:
- rename PPFs as private ancillary funds (PAFs)
- move the full administration of those funds under the authority of the Commissioner
- allow the Commissioner to endorse PAFs as deductible gift recipients (DGRs)
- give the Treasurer the power to make legislative guidelines about the establishment and maintenance of PAFs
- give the Commissioner the power to impose administrative penalties on trustees that fail to comply with the guidelines and to remove or suspend trustees of non-complying funds.
In a media release issued on 10 September 2009, the Assistant Treasurer, Senator Nick Sherry, said: "This honours the Rudd Government's 2008 Budget commitment to improve the integrity of such funds and to provide the trustees with greater certainty as to their philanthropic obligations.".
For a copy of Non-Profit News Service No 0253, go here
For a copy of the Assistant Treasurer's media release No 2009/049, 10 September 2009, go here