Friday, October 2, 2009
The Tax Laws Amendment (2009 Measures No 4) Bill 2009 has passed the Australian Senate and is now awaiting royal assent. The Assistant Treasurer has issued a media release regarding the amendments in the Bill - see No. 049 Important philanthropic tax law reforms pass through parliament. The Bill amends the tax law to improve the integrity of prescribed private funds (PPFs). The amendments among other things:
· rename PPFs as private ancillary funds (PAFs)
· move the full administration of those funds under the authority of the Commissioner of Taxation (the Commissioner)
· allow the Commissioner to endorse PAFs as deductible gift recipients (DGRs)
· give the Treasurer the power to make legislative guidelines about the establishment and maintenance of PAFs
· give the Commissioner the power to impose administrative penalties on trustees that fail to comply with the guidelines and to remove or suspend trustees of non-complying funds.
The Government of Australia has now published the Private Ancillary Fund Guidelines 2009, which are effective from 1 October 2009. They set minimum standards for the governance and conduct of a private ancillary fund and its trustee.