30 June 2006

Deductibility of Gifts to Nonprofit Australia

The Minister for Revenue and Assistant Treasurer, Peter Dutton MP, has announced that the Government will amend the Income Taxation Amendment Act 1997 to ensure that gifts of $2 or more donated to Nonprofit Australia Ltd will become tax deductible for a three-year period from today.

Nonprofit Australia Ltd was established in late 2004 by not-for-profit leaders and corporate executives, who were drawn together by a common commitment to seeing the not-for-profit sector face the challenges of the future.

Nonprofit Australia Ltd is helping to build the capacity of the not-for-profit sector by improving its efficiency and effectiveness. It is working to increase the capabilities of nonprofit leaders and Board members, improve the financial capacity of the sector, and stimulate collaboration across the sector.

In this way, the work of Nonprofit Australia Ltd can significantly expand the capacity of the not-for-profit and charitable sector in the long-term to better respond to new and growing challenges.

In recognition of the important work of Nonprofit Australia Ltd the Government, through the Department of Families, Community Services and Indigenous Affairs (FaCSIA), provided a total of $850,000 in funding to assist Nonprofit Australia Ltd in the years 2004-05 and 2005-06. In the 2006-07 Budget it was announced that a further funding commitment of $500,000 per year for the next three years would be provided to Nonprofit Australia Ltd.

Legislation to give effect to this announcement will be introduced as soon as practicable.

Taxpayers should ensure that they receive a receipt for their donation.