An exposure draft of legislation on Prescribed Private Funds (PPFs) was released last night with comments due to Treasury by Friday 29 May 2009.
The exposure draft proposes that the Treasurer have the ability to make legally enforceable guidelines for PPFs, increases the Australian Taxation Office’s regulatory power over PPFs, and gives the Commissioner of Taxation full power over the administration (including the endorsement) of PPFs.
As PPFs will no longer be prescribed in the relevant legal sense, the name of PPFs will change to ‘private ancillary funds’. The new streamlined approval arrangements of private ancillary funds are consistent with other kinds of organisations that collect tax deductible donations.
For reasons of Constitutional authority, all new private ancillary funds must be controlled by a single corporate trustee. Approximately 80 per cent of existing funds already meet this requirement, and the remainder will have until 1 July 2011 to comply.
An exposure draft of new guidelines will be released later this month. The changes are planned to have effect from 1 October 2009.
More information: Press Release at http://assistant.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2009/051.htm&pageID=003&min=ceb&Year=&DocType=
Information on submissions: http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=1541
May. 19, 2009
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