Private ruling: Income tax exempt entity
Date of advice: 18 February 2026
Published: 7 April 2026
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: XX Month 20XX

Ruling: Q1: Is the entity exempt from income tax under section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) as a society, association or club established for the encouragement of art under table item 9.1(b) in section 50-45 of the ITAA 1997? | A1: Yes. The entity's ordinary and statutory income is exempt from income tax under section 50-1 of the ITAA 1997 as it is considered to be a society, association or club established for the encouragement of art under table item 9.1(b) in section 50-45 of the ITAA 1997, its activities are not carried on for the profit or gain of its individual members as outlined in its constitution, and it is not a charity.

Relevant facts and circumstances: Background The entity is a registered association that was registered on a specified date. The entity operates from a specific location in Australia and pursues its objects from that location. The entity is governed by its Constitution (governing document). The objects of the entity are set out in the Constitution and stated as for the encouragement of art. The entity's Constitution includes: • not-for-profit clauses, and • wind up, and dissolution of assets clauses prohibiting distribution to its members. The entity's activities include training, performing/displaying, providing information, studying, judging and critiquing for both its members and the public. The entity uses its surplus funds generated from its activities for the encouragement of art and to develop facilities from which to undertake its activities. Surplus funds are also to be used to offset any losses incurred from activities for the encouragement of art. The entity has also provided various forms of documentation to support their application, including the entity's governing document. The entity is not carried on for the profit or gain of its individual members. The entity is not a charity registered with the Australian Charities and Not-for-profits Commission (ACNC).

Relevant legislative provisions: Income Tax Assessment Act 1997 section 50-1 | Income Tax Assessment Act 1997 section 50-45 | Income Tax Assessment Act 1997 section 50-47 | Income Tax Assessment Act 1997 section 50-70 | Income Tax Assessment Act 1997 section 995-1 | Australian Charities and Non-for-profits Commission Act 2012 section 25-5 | Charities Act 2013 section 12