Income tax exemption - sporting club

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 Club exempt from income tax under section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) as club established for the encouragement of a game or sport under item 9c.1(c) in section 50-45 of the ITAA 1997?

Yes, the Club is exempt from income tax under section 50-1 of the ITAA 1997 as it is a society, association or club established for the encouragement of sport under item 9.1(c) of section 50-45 of the ITAA 1997, satisfies the special conditions in Section 50-70 of the ITAA 1997, and is not an ACNC type of entity meaning section 50-47 of the ITAA does not apply. This ruling applies for the following period: Year ended 20 June 20XX The scheme commenced on: 1 July 20XX

The Club is an incorporated association. The Club is located in Australia, and its activities are conducted in Australia. The Club is not registered with the Australian Charities and Not-for-profits Commission (ACNC) as a charity. The Club is managed and controlled by a Board of Management (the Board) The Club is governed by a Constitution (the Constitution). The Constitution confirms the entity's not-for-profit status by containing clauses that outline: • objects of the club • how income and property are handled • the classifications of memberships available at the Club • dissolution of the Club

Income Tax Assessment Act 1997 section 50-1 Income Tax Assessment Act 1997 section 50-45 Income Tax Assessment Act 1997 section 50-47