Private ruling: Not-for-profit company
Date of advice: 5 February 2026
Published: 30 March 2026
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: XX Month 20XX

Ruling: Q1: Following implementation of the Proposed Transaction, will the Company continue to be entitled to be endorsed as an income tax exempt charity under section 50-110 of the Income Tax Assessment Act 1997 (ITAA 1997), and continue to meet the relevant conditions in sections 50-50 and 50-52 of the ITAA 1997? | A1: Yes. Implementation of the Proposed Transaction will not impact the Company from satisfying the requirements to be entitled to be endorsed as exempt from income tax under section 50-110 of the ITAA 1997, or from satisfying the requirements to meet the relevant conditions in sections 50-50 and 50-52 of the ITAA 1997, as it is assumed that the Company will continue to: • have an ABN, • be registered as a charity with the Australian Charities and Not-for-profits Commission (ACNC) covered by table item 1.1 'registered charity' in section 50-5 of the ITAA 1997 and is thereby, an 'ACNC type of entity' satisfying section 50-47 of the ITAA 1997, • be endorsed as a Deductible Gift Recipient (DGR) under table item 1 in section 30-15 of the ITAA 1997, as a 'registered public benevolent institution' covered by table item 4.1.1 in subsection 30-45(1) of the ITAA 1997, meeting the special condition in subsection 50-50(1) of the ITAA 1997, by virtue of being a DGR, • undertake activities which are not carried on for the profit or gain of its individual members, thereby complying with all the substantive requirements as set out in its Constitution and will continue to apply its income and assets, whilst operating and on winding up, solely for the purpose for which the Company was established, meeting the special condition in subsection 50-50(2) of the ITAA 1997, and • be endorsed by the Commissioner of Taxation (Commissioner) as exempt from income tax under Subdivision 50-B of the ITAA 1997 (charities), meeting the special condition in subsection 50-52 of the ITAA 1997. Issue 2 - Deductible gift recipient (DGR) | Q2: Following implementation of the Proposed Transaction, will the Company continue to be entitled to be endorsed as a deductible gift recipient (DGR) under section 30-120 of the ITAA 1997? | A2: Yes. Implementation of the Proposed Transaction will not impact the Company from satisfying the requirements to be entitled to be endorsed as a DGR under section 30-120 of the ITAA 1997, as it is assumed that the Company will continue to: • have an ABN, • meet the description of a DGR item (i.e. a PBI registered with the ACNC, covered by item 4.1.1 of the table in section 30-45(1) of the ITAA 1997), • meet the 'in Australia' requirement, • have acceptable rules for transferring surplus gifts and deductible contributions on winding up or revocation of endorsement (the winding up clause in the Company's Constitution satisfies this condition), and • be endorsed as a DGR under section 30-120 of the ITAA 1997. Issue 3 - GST | Q3: Following implementation of the Proposed Transaction, will the Company continue to be entitled to be endorsed as a charity under section 176-1 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A3: Yes. Implementation of the Proposed Transaction will not impact the Company from satisfying the requirements to be entitled to be endorsed as a charity under section 176-1 of the GST Act, as it is assumed that the Company will continue to: • have an ABN, • be an 'ACNC-registered charity', and • be endorsed as a charity by the Commissioner under section 176-1 of the GST Act. Issue 4 - FBT | Q4: Following implementation of the Proposed Transaction, will the Company continue to be entitled to be endorsed as a public benevolent institution (PBI) under section 123C of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)? | A4: Yes. Implementation of the Proposed Transaction will not impact the Company from satisfying the requirements to be entitled to be endorsed as a PBI under section 123C of the FBTAA, as it is assumed that the Company will continue to: • have an ABN, • be registered with the ACNC as a charity with a subtype of PBI and a DGR, • not be an employer in relation to which step 2 of the method statement in subsection 5B(1E) applies, and • be endorsed as a registered PBI by the Commissioner under section 123C of the FBTAA.

Relevant facts and circumstances: Background 1. The Company is a not-for-profit entity limited by guarantee registered with the Australian Charities and Not-for-profits Commission (ACNC) as a charity as a public benevolent institution (PBI). 2. The Company has an ABN and is registered for GST. 3. The Company has been endorsed to access the following concessions: • income tax exemption, • DGR status under table item 1 in section 30-15 of the ITAA 1997, as a registered PBI covered by table item 4.1.1 in subsection 30-45(1) of the ITAA 1997, • GST concession, and • FBT exemption. 4. The Company is governed by its Constitution. The Company pursues its charitable purpose which is detailed in its objects. The Company's only activities are (either conducted directly by the entity or through its other associated charitable trusts of which it is the sole member of the corporate trustee), for the charitable purpose. 5. A copy of the Constitution was provided which included appropriate not-for-profit and dissolution clauses. 6. There have been no changes to the Constitution since it was implemented. 7. As part of its activities, the Company is the sole member of another company limited by guarantee which is the Trustee of a Trust. 8. The Trust is a registered charity which also has the same charitable purpose. 9. The Company provides support services to the Trust being for charitable purposes. Proposed transaction 10. The Company provided us with details of the proposed transaction. 11. The Company is undertaking a restructure whereby it will relinquish its membership of the Trustee. 12. By relinquishing its membership, the composition of the Trustee's board of directors will change and the Company will cease to provide services to the Trust. 13. The Company only proposes to exit the arrangements with the Trust and will continue undertaking its activities pursuant to its objects for its remaining associated charitable trusts, following implementation of the proposed transaction. 14. The Company seeks confirmation that the implementation of the proposed transaction will not affect its eligibility for tax concessions. Assumptions It is assumed that the Company will continue to hold an ABN and continue to be registered by the ACNC as a charity with the subtype public benevolent institution (PBI).

Relevant legislative provisions: Income Tax Assessment Act 1997 section 30-15 | Income Tax Assessment Act 1997 subsection 30-45(1) | Income Tax Assessment Act 1997 section 30-115 | Income Tax Assessment Act 1997 section 30-120 | Income Tax Assessment Act 1997 section 30-125 | Income Tax Assessment Act 1997 section 50-1 | Income Tax Assessment Act 1997 section 50-5 | Income Tax Assessment Act 1997 section 50-47 | Income Tax Assessment Act 1997 section 50-50 | Income Tax Assessment Act 1997 section 50-52 | Income Tax Assessment Act 1997 Subdivision 50-B | Income Tax Assessment Act 1997 section 50-105 | Income Tax Assessment Act 1997 section 50-110 | Income Tax Assessment Act 1997 section 995-1 | Australian Charities and Not-for-profits Commission Act 2012 section 25-5 | Charities Act 2013 section 12 | A New Tax System (Goods and Services Tax) Act 1999 section 176-1 | A New Tax System (Goods and Services Tax) Act 1999 section 195-1 | Taxation Administration Act 1953 section 426-55 in Schedule 1 | Fringe Benefits Tax Assessment Act 1986 subsection 5B(1E) | Fringe Benefits Tax Assessment Act 1986 section 123C | Fringe Benefits Tax Assessment Act 1986 section 136