NO.049

FIVE NEW GENERAL DEDUCTIBLE.gifT RECIPIENT CATEGORIES

The Australian Government will establish five new general deductible gift recipient

(DGR) categories with effect from 1 July 2006. The new categories extend DGR

support to funds and organisations established to cover war memorials, disaster

relief, animal welfare, charitable services and educational scholarships.

This enables organisations seeking DGR status within the new categories to

be considered under the consistent framework provided by the general categories.

Organisations that meet the criteria for DGR status under the new categories

may be eligible to be endorsed as DGRs under the tax law.

The five new categories extend DGR support to approved organisations and funds

in the following circumstances:

• Funds that are established for the reconstruction and critical repair of

  eligible war memorials. Approved funds may be endorsed as DGRs for a maximum

  period of two years.

• Public funds whose principal purposes are to relieve or prevent distress

  caused by declared natural or man-made disasters or assist in disaster reconstruction

  within Australia and in developed countries.

• Charitable funds and organisations whose principal purposes are the provision

  of services which provide direct care to maltreated animals.

• Charitable funds that undertake a combination of activities that fall under

  several existing DGR categories (such as health promotion, harm prevention,

  public benevolent institutions).

• Charitable funds that are established and maintained solely for the purpose

  of providing scholarships, bursaries or prizes to promote education where

  entry is open to persons at a national, regional or state level. This category

  covers scholarships for all levels of education.

Taxpayers can claim an income tax deduction for certain gifts of money or property

to organisations that are endorsed as DGRs under the new categories.

CANBERRA

10 May 2005