The Government will introduce legislation to improve the integrity of prescribed private funds (PPFs), with effect from 1 July 2009.
A PPF is a trust to which businesses, families and individuals can make tax deductible donations, for the purposes of disbursing funds to a range of deductible gift recipients.
The Government will improve transparency and provide the trustees of PPFs with greater certainty of their philanthropic obligations by amending and legislating the PPF guidelines. The changes will, among other things, ensure regular valuation of assets at market rates, increase the size of compulsory distributions, and give the Australian Taxation Office greater regulatory powers.
The details of the changes will be finalised following consultation with relevant stakeholders.
This change will not impact on the ability of taxpayers to give tax deductible donations directly to a deductible gift recipient.
13 May 2008