Issue
Is a school building fund that is established and maintained by a church an Australian Charities and Not-for-profit Commission (ACNC) type of entity as defined in section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) where the school building fund is established by trust deed?
Decision
Yes, where the school building fund is established by trust deed the school building fund is an 'ACNC type of entity'.
Facts
A church conducts a school. The church has an Australian Business Number, and is registered under the Australian Charities and Not-for-profits Commission Act 2012 .
The church establishes and maintains a school building fund solely for the purpose of providing money for the acquisition, construction or maintenance of buildings used by the school. The school building fund is a public fund.
The school building fund is established by trust deed. The church is the trustee of the school building fund.
Reasons for Decision
Subdivision 30-B of the ITAA 1997 sets out the funds, authorities and institutions which are eligible to receive deductible gifts.
In order for a fund to satisfy item 2.1.10 of the table in subsection 30-25(1) of the ITAA 1997: • it must be a public fund established and maintained solely for the purpose of providing money for the acquisition, construction or maintenance of a building used as a school or college; • the building must be used as a school or college by a government, a public authority or a non-profit society or association as described in item 2.1.10; and • the fund must be registered under the Australian Charities and Not-for-profits Commission Act 2012 ; or not be an 'ACNC type of entity' as defined in the ITAA 1997.
Section 995-1 of the ITAA 1997 defines the phrase 'ACNC type of entity' to mean: an entity that meets the description of a type of entity in column 1 of the table in subsection 25-5(5) of the Australian Charities and Not-for-profits Commission Act 2012 .
The term 'entity' is defined in section 960-100 of the ITAA 1997 to include a trust. The term 'trust' is not defined in the ITAA 1997.
The school building fund is a trust, and is therefore an entity under section 960-100 of the ITAA 1997. As the school building fund is also a charity, it is an entity that meets the description of a type of entity in column 1 of the table in subsection 25-5(5) of the Australian Charities and Not-for-profits Commission Act 2012 .
Therefore, the school building fund is an 'ACNC type of entity' as defined in section 995-1 of the ITAA 1997.
Amendment History
Date of Amendment Part Comment 10 September 2018 Issue, Facts, Reason for Decision Minor punctuation amendments 10 June 2016 Issue, Facts, Reason for Decision Minor punctuation amendments
Date of Amendment | Part | Comment
10 September 2018 | Issue, Facts, Reason for Decision | Minor punctuation amendments
10 June 2016 | Issue, Facts, Reason for Decision | Minor punctuation amendments