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Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012

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2010-2011-2012

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

THE SENATE

 

 

Australian Charities and Not-for-profits Commission

(Consequential and Transitional) Bill 2012

 

 

Schedule of the amendments made by the Senate

 

 

 

 

 

(1)     Schedule  1 , Part  2 , page 6 (before line 2) , before item 2, insert:

Division 1—Endorsed entities

(2)     Schedule 1, item 2, page 6 (line 9), after “item 3 or 4”, insert “or paragraph 4D(4)(b), (5)(b) or (6)(b)”.

(3)     Schedule  1 , items  3 and 4 , page 6 (line 28) to page 8 (line 2) , omit the items, substitute:

3  Health promotion charities

(1)       This item applies to an entity that, on the day before the commencement day, is:

                     (a)  endorsed under section 123D of the Fringe Benefits Tax Assessment Act 1986 as a health promotion charity; or

                     (b)  endorsed under Subdivision 30-BA of the Income Tax Assessment Act 1997 as a deductible gift recipient because the entity is a fund, authority or institution covered by item 1.1.6 of the table in subsection 30-20(1) of that Act (charitable institution whose principal activity is to promote the prevention or the control of diseases in human beings).

(2)       The Commissioner is treated as having registered the entity on the commencement day under Division 30 of the ACNC Act as:

                     (a)  the type of entity mentioned in column 1 of item 1 of the table in subsection 25-5(5) of that Act (charity); and

                     (b)  the subtype of entity mentioned in column 2 of item 5 of that table (institution whose principal activity is to promote the prevention or the control of diseases in human beings).

4  Public benevolent institutions

(1)       This item applies to an entity that, on the day before the commencement day, is:

                     (a)  endorsed under subsection 123C(1) of the Fringe Benefits Tax Assessment Act 1986 as a public benevolent institution; or

                     (b)  endorsed under Subdivision 30-BA of the Income Tax Assessment Act 1997 as a deductible gift recipient because the entity is a fund, authority or institution covered by item 4.1.1 of the table in subsection 30-45(1) of that Act (public benevolent institution).

(2)       The Commissioner is treated as having registered the entity on the commencement day under Division 30 of the ACNC Act as:

                     (a)  the type of entity mentioned in column 1 of item 1 of the table in subsection 25-5(5) of that Act (charity); and

                     (b)  the subtype of entity mentioned in column 2 of item 6 of that table (public benevolent institution).

(4)     Schedule  1 , Part  2 , page 8 (after line 2) , after item 4, insert:

Division 2—Entities endorsed for the operation of institutions

4A  Scope of Division

(1)       This Division applies if, on the day before the commencement day, an entity (the operator ) is:

                     (a)  endorsed under Subdivision 30-BA of the Income Tax Assessment Act 1997 as a deductible gift recipient for the operation of one or more institutions covered by item 1.1.6 of the table in subsection 30-20(1) of that Act (charitable institution whose principal activity is to promote the prevention or the control of diseases in human beings); or

                     (b)  endorsed under that Subdivision as a deductible gift recipient for the operation of one or more institutions covered by item 4.1.1 of that table (public benevolent institution); or

                     (c)  endorsed under subsection 123C(3) of the Fringe Benefits Tax Assessment Act 1986 for the operation of one or more public benevolent institutions.

(2)       This Division applies:

                     (a)  for the purposes of this Act (other than item 5 of this Schedule) from the day before the commencement day; and

                     (b)  for the purposes of the ACNC Act and the taxation law from the commencement day.

4B  Institutions treated as separate entity

(1)       The operator is treated as if it were 2 or 3 entities:

                     (a)  the entity (the non-institution sub-entity ) the operator would be if it did not include the institutions; and

                     (b)  the entity (an institution sub-entity ) the operator would be if the operator included only the institutions (if any) mentioned in paragraph 4A(1)(a); and

                     (c)  the entity (an institution sub-entity ) the operator would be if the operator included only the institutions (if any) mentioned in paragraph 4A(1)(b) or (c).

Effect of revocation of registration of institution sub-entity

(2)       From the time (if any) the Commissioner of the ACNC revokes under the ACNC Act the registration of an institution sub-entity:

                     (a)  paragraph (1)(a) has effect as if the reference in that paragraph to the institutions did not include a reference to the institutions included in the institution sub-entity; and

                     (b)  paragraph (1)(b) or (c) (whichever applies to the institution sub-entity) has no effect.



 

4C  Non-institution sub-entity

(1)       The ABN of the operator is treated as being the ABN of the non-institution sub-entity.

(2)       If the operator was, apart from this Division, endorsed on the day before the commencement day as mentioned in paragraph 2(1)(a):

                     (a)  the non-institution sub-entity is treated, on that day, as being endorsed in that way; and

                     (b)  to avoid doubt, each institution sub-entity is treated, on that day, as not being endorsed in that way.

Note:       Item 2 applies to that non-institution sub-entity.

4D  Institution sub-entities

ABN

(1)       The A New Tax System (Australian Business Number) Act 1999 applies to an institution sub-entity as if the institution sub-entity were carrying on an enterprise in Australia.

(2)       During the period:

                     (a)  starting on the commencement day; and

                     (b)  ending on the earlier of:

                              (i)  the day the Registrar of the Australian Business Register registers an institution sub-entity in the Australian Business Register; and

                             (ii)  12 months after the commencement day;

paragraph 10(1)(a) of the A New Tax System (Australian Business Number) Act 1999 (entity must have applied for registration) does not apply to the institution sub-entity.

Note:       Subitem (2) has the effect that the Registrar of the Australian Business Register must register the institution sub-entity in the Australian Business Register (including allocating the institution sub-entity an ABN).

(3)       During that period (and without limiting item 4C), the institution sub-entity may treat the ABN of the non-institution sub-entity as being the ABN of the institution sub-entity.

Endorsements

(4)       In a case to which paragraph 4A(1)(a) applies:

                     (a)  the endorsement mentioned in that paragraph is treated as being an endorsement of the institution sub-entity mentioned in paragraph 4B(1)(b); and

                     (b)  the Commissioner of the ACNC is treated as having registered the institution sub-entity on the commencement day under Division 30 of the ACNC Act as:

                              (i)  the type of entity mentioned in column 1 of item 1 of the table in subsection 25-5(5) of that Act (charity); and

                             (ii)  the subtype of entity mentioned in column 2 of item 5 of that table (institution whose principal activity is to promote the prevention or the control of diseases in human beings).

(5)       In a case to which paragraph 4A(1)(b) applies:

                     (a)  the endorsement mentioned in that paragraph is treated as being an endorsement of the institution sub-entity mentioned in paragraph 4B(1)(c); and

                     (b)  the Commissioner of the ACNC is treated as having registered the institution sub-entity on the commencement day under Division 30 of the ACNC Act as:

                              (i)  the type of entity mentioned in column 1 of item 1 of the table in subsection 25-5(5) of that Act (charity); and

                             (ii)  the subtype of entity mentioned in column 2 of item 6 of that table (public benevolent institution).



 

(6)       In a case to which paragraph 4A(1)(c) applies:

                     (a)  the Commissioner of Taxation is treated as having endorsed the institution sub-entity mentioned in paragraph 4B(1)(c) under subsection 123C(1) of the Fringe Benefits Tax Assessment Act 1986 as a public benevolent institution; and

                     (b)  the Commissioner of the ACNC is treated as having registered the institution sub-entity on the commencement day under Division 30 of the ACNC Act as:

                              (i)  the type of entity mentioned in column 1 of item 1 of the table in subsection 25-5(5) of that Act (charity); and

                             (ii)  the subtype of entity mentioned in column 2 of item 6 of that table (public benevolent institution).

ACNC Act

(7)       For the purposes of the ACNC Act:

                     (a)  the institution sub-entity mentioned in paragraph 4B(1)(b) of this Schedule is treated as being the subtype of entity mentioned in column 2 of item 5 of the table in subsection 25-5(5) of that Act for as long as each of the institutions included in the institution sub-entity is an institution whose principal activity is to promote the prevention or the control of diseases in human beings; and

                     (b)  the institution sub-entity mentioned in paragraph 4B(1)(c) of this Schedule is treated as being the subtype of entity mentioned in column 2 of item 6 of that table as long as each of the institutions included in the institution sub-entity is a public benevolent institution.

4E  Regulations

The regulations may, for the purpose of giving effect to this Division, provide for how this Schedule, the ACNC Act or the taxation law applies in relation to the non-institution sub-entity or an institution sub-entity.

Division 3—Opt-out

(5)     Schedule 1, item 5, page 8 (line 8), omit “Items 2, 3, 4 and 6”, substitute “Divisions 1, 2 and 4”.

(6)     Schedule  1 , Part  2 , page 8 (before line 14) , before item 6, insert:

Division 4—Religious institutions

(7)     Schedule  1 , item 6, page 8 (line 21) , after “item 2, 3 or 4”, insert “ or paragraph 4D(4)(b), (5)(b) or (6)(b) ”.

(8)     Schedule 2, page 46 (after line 9), after item 44, insert:

44A  Subsection 57A(1)

Omit “subsection 123C(1) or (5)”, substitute “section 123C”.

(9)     Schedule  2 , page 47 (after line 16) , after item  56 , insert:

56A  Subsection 123C(1) (heading)

Repeal the heading.

(10)   Schedule  2 , items  58 and 59 , page 47 (lines 20 to 25) , omit the items, substitute:

58  Subsections 123C(3) to (5)

Repeal the subsections.

(11)   Schedule  2 , item  68 , page 49 (lines 10 to 12) , omit the item, substitute:

68  Paragraph 426-5(d) in Schedule 1

Repeal the paragraph.

68A  Subsection 426-40(1) in Schedule 1 (paragraph (b) of note 1)

Omit “and (4)”.

68B  Subsection 426-55(1) in Schedule 1 (paragraph (b) of the note)

Omit “and (4)”.

68C  Paragraph 426-65(1)(d) in Schedule 1

Repeal the paragraph.

 

 

 

 

 

Rosemary Laing

Clerk of the Senate

 

 

The Senate

31 October 2012