(8) Schedule 5, page 24 (after line 12), after item 11, insert:

11A After section 30-220

Insert:

30-222 How much you can deduct for certain gifts of land

(1) This section contains the rules for working out how much you can deduct for a gift of property that you made to a recipient covered by item 1 or 2 of the table in section 30-15 if:

(a) the property is land or an interest in land; and

(b) the recipient is:

(i) an *environmental organisation or a fund, authority or institution covered by the table in subsection 30-55(2); or

(ii) a public fund established and maintained under a will or instrument of trust solely for the purpose of providing money, property or benefits to an entity mentioned in subparagraph (i).

(2) If you sell land that you own to an entity mentioned in paragraph (1)(b) for less than its market value, you can deduct the difference between the market value of the property on the day you made the sale and the actual sale price.

(3) If you give land that you own to an entity mentioned in paragraph (1)(b) but you retain the right to live on that land for the remainder of your life, you can deduct the market value of the property subject to your life interest.

30-223 How much you can deduct for land affected by a conservation covenant

(1) This section contains the rules for working out how much you can deduct if the value of land is decreased by a conservation covenant.

(2) If you enter into a conservation covenant in respect of land you own and the market value is decreased because of the covenant, you can deduct the difference in the market value of the land before and after you entered into the covenant.

(3) In this section, conservation covenant means any approved form of agreement relating to the management, use and development of an area of land that is registered or noted on the land title and requires the landholder and all subsequent landholders:

(a) to maintain native vegetation and undertake any other actions required to conserve the biodiversity values of that land; or

(b) to maintain buildings or structures or other items of cultural significance that are registered on a recognised Commonwealth, State or Territory heritage register;

and includes, but is not limited to, an agreement under the following provisions:

(c) sections 304 to 311 of the Environment Protection and Biodiversity Conservation Act 1999;

(d) sections 69B and 69C of the National Parks and Wildlife Act 1974 (NSW);

(e) sections 41 to 44 of the Native Vegetation Conservation Act 1997 (NSW);

(f) section 51 of the Nature Conservation Act 1992 (Qld);

(g) section 3A of the Victorian Conservation Trust Act 1972;

(h) sections 69 to 72 of the Conservation, Forests and Lands Act 1987 (Vic);

(i) section 23 of the Native Vegetation Act 1991 (SA);

(j) section 30B of the Soil and Land Conservation Act 1945 (WA);

(k) section 29 of the Heritage of Western Australia Act 1990 (WA);

(l) sections 37A to 37H of the National Parks and Wildlife Act 1970 (Tas).

(11) Schedule 5, item 16, page 25 (line 5), omit “cultural”.

(12) Schedule 5, item 16, page 25 (line 10), omit “cultural”.

(13) Schedule 5, item 16, page 25 (line 20), after “section 30-15”, insert “or by section 30-222 or 30-223”.

(14) Schedule 5, page 26 (after line 20), after item 16, insert:

16A After Subdivision 30-F

Insert:

30-310 What this Subdivision is about

This Subdivision prevents certain private funds from being, or continuing to be, *prescribed private funds.

30-312 Restrictions on prescribed private funds

(1) A private fund which makes, or has ever made, a gift or contribution or provides, or has ever provided, a benefit of any other kind (including a loan) to a political party that is registered under Part XI of the Commonwealth Electoral Act 1918, or an associated entity within the meaning of that Act, is incapable of being a *prescribed private fund.

(2) If a *prescribed private fund makes a gift or contribution or provides a benefit of any other kind (including a loan) to a political party that is registered under Part XI of the Commonwealth Electoral Act 1918, or an associated entity within the meaning of that Act, the fund ceases to be a *prescribed private fund by force of this subsection and is deemed never to have been a *prescribed private fund.

16B Subsection 30-315(2) (after table item 88)

Insert:

88A Prescribed private funds section 30-312

(17) Schedule 5, item 21, page 27 (line 14), after “section”, insert “, or under section 30-222 or 30-223,”.

(18) Schedule 5, item 24, page 28 (line 14), at the end of the definition of prescribed private fund, add “or a fund to which Subdivision 30-FA applies”.

Senate Amendments 8, 11-13 and 17

These amendments propose significant additions to measures contained in the Bill that will provide taxation incentives for personal and corporate philanthropy in Australia. Broadly, the amendments provide that where a property owner covenants a property for conservation purposes and that results in a reduction in the value of the property then any reduction in the value of the property should be treated as a tax deduction. The amendments also extend the ability to deduct amounts over five years to such donations and also where property is donated a capital gains tax exemption should apply.

Substantial changes like these need to be considered in depth in the context of their cost as well as their effectiveness. Any decisions need to be taken within the budgetary constraints of government but also with the objective of getting the most effective outcome in terms of conservation.

Accordingly, the House of Representatives does not accept these amendments.

Senate Amendments 14 and 18

The amendments propose changes to the measure that will allow tax deductibility for donations to what will be known as prescribed private funds. Broadly, prescribed private funds will have to operate in the same way as public ancillary funds but will not have to seek and receive funds from the public. The purpose of the amendments is to preclude a fund that provides funds to political parties from being a prescribed private fund.

Item 6 of Schedule 5 of the Bill will amend the Income Tax Assessment Act 1997 such that a fund can only be a prescribed private fund if it is established solely for the purpose of providing money to a fund or institution that is listed under Subdivision 30-B of that Act. If a fund is established to provide funds to any non-listed institutions it cannot be a prescribed private fund. Political parties are not listed in Subdivision 30. The amendment is unnecessary.

Accordingly, the House of Representatives does not accept these amendments.