New Indigenous Fund Structure suggested

A new Treasury consultation paper has outlined three suggested approaches to tax reform in the area of native title, one of which is a proposed new kind of income tax exempt vehicle, referred to as an Indigenous Community Fund. The potential new vehicle would be established under legislation as a tax-exempt way of managing payments received under native title agreements. It is suggested that such a vehicle might be a suitable alternative to a charitable trust and could overcome some of the limitations of charitable trusts, enabling it to (for example) limit benefits to a specified group of native title holders, or to fund activities associated with establishing a business.

This consultation paper also discusses how existing deductible gift recipient (DGR) categories could be better adapted to reflect the needs of Indigenous communities, including whether a new general DGR category that includes organisations that carry out activities across multiple DGR categories should be created.

Treasury is inviting comment on the consultation paper. The closing date for submissions is Friday 2 July 2010.

Further information and the consultation paper itself available at: http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=1809

May. 19, 2010

 Tags: indigenous, government, advocacy

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