11 March 2010

Tax relief for NW Queensland flood victims and tax deductible status for two more organisations

The Assistant Treasurer, Senator Nick Sherry, has welcomed the passage of legislation in Parliament today of tax changes to lessen the financial hardship experienced by those affected by the North Western Queensland floods and add two new organisations to the list of deductible gift recipients (DGRs).

The Tax Laws Amendment (2009 Measures No. 6) Bill 2009, which passed the Senate this afternoon, ensures the income recovery subsidy that was available to those who suffered loss of income as a direct result of the North Western Queensland floods of January and February 2009 is exempt from income tax.

This treatment applies to the 2008-09 income year.

The Bill also adds the Green Institute and the United States Studies Centre (USSC) to those DGRs listed by name in Division 30 of the Income Tax Assessment Act 1997.

"This status means donations to these organisations are tax deductible and will help them to attract public support for their activities," the Assistant Treasurer said.

The USSC, established at the University of Sydney, promotes friendship, cooperation and understanding between the peoples of the United States, Australia and New Zealand.

The USSC counts Australia's Ambassador to the United States, the Honourable Kim Beazley, AC, as a member of its Council of Advisors.

It aims to strengthen relations between these countries through creating a better understanding of their cultures and societies.

The Green Institute is a think tank affiliated with the Australian Greens.

There is a longstanding practice of research organisations associated with major political parties being listed by name in the tax law as DGRs. Under this convention, the Menzies, Chifley and Page Research Centres have been listed, along with the Don Chipp Foundation.