1 October deadline looms for trustees to ensure compliance with New Guidelines.
In 1999 the Government introduced income tax measures to encourage greater corporate and personal philanthropy in Australia by allowing concessional taxation treatment for what were then called "Prescribed Private Funds" and also to classify them as a DGR (deductible gift recipient) entitling donors to claim gifts made to those funds on or after 1 July 1999 as deductions. On 28 September 2009 the Government issued new guidelines and renamed these funds as Private Ancillary Funds (PAFS). The Private Ancillary Fund Guidelines 2009 (New Guidelines), which set new minimum standards for the governance and conduct of PAFs, commenced on 1 October 2009, subject to transitional provisions.
The transitional rule in the PAF Guidelines effectively provides that if a PAF's governing rules set out in its trust deed prevent compliance with a requirement in the New Guidelines, the fund is exempt from that requirement until 1 October 2012 but the trustee must seek to have the governing rules of the fund amended to comply with the New Guidelines by 1 October 2012.
Peter Carroll (pdcarroll@codea.com.au) Ph: 8226 7363
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
