Division 30-15 Income Tax Assessment Act 1997 lists the categories of institutions or funds within the area of Education which could attract DGR status.

Schools
Certain categories which would be most relevant to schools are contained in Item 2.

Item 2.1.10 - School Building funds;

Item 2.1.13 - Scholarships, bursaries or prizes funds; and possibly

Item 12.1.2 - A public library (though this would require the school allowing use of their library by the general public)

Other potential categories for schools include:

Item 2.1.8 - a fund for providing religious instruction in government schools in Australia, with a separate Item 2.1.9 for funds maintained by a Roman Catholic diocese to provide religious instruction in government schools in Australia

Item 2.1.9A - a fund for providing education in ethics in government schools in Australia as an alternative to religious instruction

Item 2.1.11 - a fund for a rural school hostel building; and

Item 2.1.12 - a government school which provides special education to permanently disabled children only, to secure DGR status.

Tertiary Education Institutions

If the educational institution is a tertiary institution, potential categories are also contained in Item 2: Item 2.1.1 -a public university;

Item 2.1.2 - a fund for the establishment of the public university;

Item 2.1.3 - a higher education institution within the meaning of the Higher Education Support Act 2003

Item 2.1.4 - a residential education institution affiliated under statutory provisions with a public university;

Item 2.1.6 - a residential education institution that is affiliated with a higher education institution; and

Item 2.1.7 - an institution that the Education Minister has determined to be a technical and further education institution under the Student Assistance Act 1973

Building Fund

Any funds raised must be applied towards building acquisition, construction or maintenance expenditure. A trust deed with a body corporate trustee is usually signed to create the fund, and it must have its own bank account.

Sholarship Fund

The documents to establish a scholarship fund because there are certain non negotiable provisions they must contain dealing with:-

  1. Eligibility to all Australians to make an application.
  2. Provision that awards are based on merit or need; and
  3. Distribution on a winding up to another scholarship fund.

All references above to a "fund" are references to a "public fund". This means the fund must raise money from the public and allow the public a role in administration of the fund. This would be done by appointing persons to management committees for the funds who hold positions of responsibility in the community. The fund document needs to stipulate that it operates on a non-profit basis and that on its dissolution any surplus would be paid to another fund with like objects and DGR status.

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.