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Income tax gift provisions : residential hostels



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TREASURER

PRESS RELEASE NO. 72

EMBARGO

COMMONWEA' Τί-ί PARLIAMENTARY LIBRARY MICAH

STATEMENT BY THE TREASURER, THE HON. P.J. KEATING, M.P.

INCOME TAX GIFT PROVISIONS : RESIDENTIAL HOSTELS

The Government has decided to amend the income tax law to allow deductions for gifts of the value of $2 or more made on or after 7 April 1989 to building funds for hostels that provide residential accommodation for school students from rural areas.

The decision is part of the Government's $637 million Education and Training Strategy for Rural Australia announced in April by the Minister for Employment, Education and Training and the Minister for Primary Industries and Energy.

To be deductible, the building fund will need to be a public fund established and maintained exclusively to provide money for the acquisition, construction or maintenance of a building used or to be used primarily as residential accommodation for school

students undertaking primary, secondary, or special education courses at approved educational institutions that receive State or Commonwealth Government funding. In addition, it will be a requirement that the hostel be run on a non-profit basis.

CANBERRA 8 August 1989

Contact Officer: Stephen Jones Telephone No : 75 2625 (work)