Is the Company exempt from income tax pursuant to section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) by virtue of being an association for the encouragement of a game or sport pursuant to section 50-45 of the ITAA 1997?
Yes. This ruling applies for the following periods : Year ending 31 December 2024 Year ending 31 December 2025 Year ending 31 December 2026 Year ending 31 December 2027 Year ending 31 December 2028 The scheme commenced on: 1 July 2024
The Company encourages a sport in Australia. It has provided its Constitution, and details of its activities. The Constitution includes clauses that prohibit the distribution of income and assets to its members or on winding up of the Company. The Company is not an ACNC type of entity. The Company will use its income and assets for its purposes and its surplus funds are not distributed to members. The Company will: • comply with all the substantive requirements in its governing rules; and • will apply all its income and assets solely for the purpose for which it has been established.
Income Tax Assessment Act 1997 section 50-1 Income Tax Assessment Act 1997 section 50-45 Income Tax Assessment Act 1997 section 50-47 Income Tax Assessment Act 1997 section 50-70 Income Tax Assessment Act 1997 section 995-1 Australian Charities and Non-for-profits Commission Act 2012 section 25-5 Charities Act 2013 section 12 Summary The Company is considered to be a society, association or club established for the encouragement of a game or sport as required under item 9.1(c) of section 50-45 of the ITAA 1997. As such, the income of the Company is exempt from income tax under section 50-1 of the ITAA 1997. The Company is not for the profit or gain of its individual members and operates principally in Australia. Detailed reasoning Section 50-1 of the Income Tax Assessment Act 1997 (ITAA 19