Income tax exempt

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

Is the Entity exempt from income tax pursuant to section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) as an association for the encouragement of a game or sport as described under item 9.1(c) of section 50-45 of the ITAA 1997?

Yes This ruling applies for the following periods : Year ending 30 June 2025 Year ending 30 June 2026 Year ending 30 June 2027 The scheme commenced on: 1 July 2024

The Entity encourages a sport in Australia. It has provided its Constitution, and details of its activities. The projected income and expenses of the Entity have been provided. The Entity will use its income and assets for its purposes and its surplus funds are not distributed to members. The Entity 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 Entity 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 Entity is exempt from income tax under section 50-1 of the ITAA 1997. The Entity 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 1997)