24 November 2010

Volunteer Fire Brigades and Mary Mackillop Fund Among Many to Benefit from Improvements to Tax Legislation

Volunteer fire brigades and other new deductible gift recipients, including the Mary MacKillop Canonisation Gift Fund, are among several organisations that will benefit from a number of improvements to Australia's taxation system announced today.

The Assistant Treasurer, the Hon. Bill Shorten MP welcomed the passage through Parliament of the Tax Laws Amendment (2010 Measures No. 4) Bill 2010.

"This Bill improves Australia's tax system in a number of ways, but I am particularly pleased to announce that this legislation extends access to tax deductible donations to all volunteer fire brigades and related emergency services groups, like the SES," the Assistant Treasurer said.

"The Victorian bushfires highlighted the importance of brigades to communities and the selflessness and bravery of our volunteer fire fighters. Australia's volunteer fire-fighters and SES perform an essential community service and this legislation will provide important assistance in attracting community support in time for the bushfire season."

The legislation also updated the list of deductible gift recipients to include, among others, the Mary MacKillop Canonisation Gift Fund. Mary MacKillop was a pioneering woman who embodied the very best of Australian values and spirit.

"As Australia's first recognised saint, this event marked a unique moment in our history," The Assistant Treasurer said.

The legislation also:

  • Provides a CGT roll-over for taxpayers who replace a water entitlement with one or more different water entitlements. This roll-over will be welcomed by irrigators who will be able to transform their right to water against an operator, into a statutory licence without any CGT liability. The roll‑over will facilitate water market trading and the efficient use of water resources.
  • Makes it easier for takeovers and mergers regulated by the Corporations Act to qualify for the CGT scrip for scrip roll-over. The amendments will facilitate a broader range of takeover bids and schemes of arrangement, which will lead to a more efficient corporate sector. The amendments potentially benefit a very large number of shareholders of companies that enter into these arrangements.

"The amendments are part of the Gillard Government's ongoing reforms of the tax system. They help bring our tax system up-to-date and I am pleased they were passed by Parliament yesterday," the Assistant Treasurer said.