09 May 06 Enhancing philanthropyThe Australian Government will introduce a number of changes to enhance philanthropy by extending a tax deduction for the donation of small parcels of shares; and streamlining the compliance requirements of deductible gift recipients (DGRs), while reducing their compliance costs. The changes will:
- Provide more options for philanthropy by allowing taxpayers to claim a tax deduction for the donation of publicly listed shares acquired more than 12 months ago and valued at $5,000 or less to a deductible gift recipient. Taxpayers will still be subject to capital gains tax.
- Increase public confidence in specifically listed DGRs by extending the Commissioner of Taxation’s power to review DGRs specifically listed in the tax law to ensure their activities align with the purposes and activities that they were listed to undertake. These powers are consistent with the review powers vested in the Commissioner of Taxation for those DGRs endorsed under the general categories. The Government and the Parliament will retain the power to approve (or revoke) specifically listed DGRs.
- Lower the compliance costs for certain DGRs by removing the requirement to maintain separate gift funds for each DGR endorsement or listing and allowing entities to maintain one gift fund for all DGR supported activities and purposes.
For a copy of the Assistant Treasurer's press release No 20, 9 May 2006, go here