Is the Association exempt from income tax under section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) as a society or association established for the purpose of promoting the development of aviation under item 8.1(a) in section 50-40 of the ITAA 1997?
Yes. This ruling applies for the following periods : Year ended 30 June 2024 The scheme commenced on: 1 July 2023
The Association was established to promote aircraft of all kinds. It is not an ACNC type of entity. The Association has regular meetings with an aviation topic focus. It also arranges activities that are focused on aviation, or that include flying aircraft. Its activities are promoted at airshows and other public events that they are represented at. It has provided its Constitution, and details of its activities. Its objectives are related to the development of aviation in Australia. The Constitution includes clauses that prohibit the distribution of income and assets to its members or on winding up of the association. A clause of the constitution defines 'membership' as any person that the governing body allows at its discretion. The Association is run by a group of a certain number of members.
Income Tax Assessment Act 1997 section 50-1 Income Tax Assessment Act 1997 section50 - 45 Income Tax Assessment Act 1997 section 50-47 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 Association is considered to be a society or association established for the purpose of promoting the development of aviation as required under item 8.1(a) of section 50-40 of the ITAA 1997. As such, the income of the association is exempt from income tax under section 50-1 of the ITAA 1997. The association is not for the profit or gain of its individual members. Detailed reasoning Section 50-1 of the ITAA 1997 states: The total *ordinary income and *statutory income of the entities covered by the f