Restating the ‘in Australia’ special conditions for tax concession entities – revised exposure draft

Executive summary

CCA supports the apparent policy intent of the draft legislation that is to ensure income tax exempt entities generally must be operated principally in Australia and for the broad benefit of the Australian community.  Likewise, deductible gift recipients (DGRs) generally must be operated solely in Australia and for the broad benefit of the Australian community.

CCA believe it is appropriate to ensure that taxation concessions to charitable and not-for-profit organisations are properly targeted and that funds remitted overseas (whether through the established overseas aid and development framework, or in any other way) are not used for improper purposes.

It is also important to acknowledge and continue to support those charities that operate in the international development area.  This means continuing to support the well-established framework of regulation that applies to overseas aid and development organisations, and maintaining the option of providing charitable status to those international development agencies that satisfy the current requirements to achieve Direct Gift Recipient status for their international aid work.   

CCA is pleased that the revised exposure draft addresses most of the concerns raised in our previous submission. 

CCA believe there is clearly still some concern in the sector about the way in which the legislation will be enacted and enforced.  CCA would be very disappointed if the passing of this legislation led to a significant number of charities having to either significantly alter their international activities or to withdraw from their involvement in overseas charitable work.

 CCA's full submission is attached.