Private ruling: Income tax exemption
Date of advice: 5 February 2021
Published: March 2021
Ruling period: 1 July 20XX to 30 June 20XY
Date scheme commenced: 1 July 20XX

Ruling: A1: No

Relevant facts and circumstances: 1. The entity is Association under the Associations Incorporation Regulation 2010. 2. The constitution states it is non-profit and provides services to the community. 3. The entity provides education and training as part of its purpose.

Relevant legislative provisions: Income Tax Assessment Act 1997 (Cth) Section 50-1 | Income Tax Assessment Act 1997(Cth) Section 50-47 | Income Tax Assessment Act 1997(Cth) Section 995-1 | Australian Charities and Not-for-profits Commission Act 2012 Section 25-5

Reasons for decision: Summary: Section 50-47 of the ITAA 1997 provides a special condition that if an entity that is covered by one of the items in subdivision 50-A is an 'ACNC type of entity', they will not be exempt from income tax unless they are registered under the Australia Charities and Not-for-profits Commission Act 2012 . 'ACNC type of entity' is defined in subsection 995-1(1) of the ITAA 1997 as an entity that meets the description of a type of entity in column 1 of the table in subsection 25-5(5) of the Australian Charities and Not-for-profits Commission Act 2012 . Column 1 of the table in subsection 25-5(5) of the Australian Charities and Not-for-profits Commission Act 2012 describes a charity. The Charities Act 2013 provides a definition of 'charity' that applies to all Commonwealth laws. The definition of 'charity' in section 5 of the Charities Act 2013 provides that 'charity' means an entity: a) That is a not-for-profit entity; and b) All of the purposes of which are: i. Charitable purposes that are for the public benefit; or ii. Purposes that are incidental or ancillary to, and in furtherance or in aid of, purposes of the entity covered by subparagraph (i); and c) None of the purposes of which are disqualifying purposes; and d) That is not an individual, a political party or a government entity. The entity's principal purpose may fall into one of the following categories listed under the Charities Act 2013 (Cth): • advancing education • other similar purposes 'beneficial to the general public'. Accordingly, section 50-47 of the ITAA 1997 applies. | Detailed Reasoning - Conclusion: The total ordinary income and statutory income of the entity is not exempt from income tax pursuant to section 50-1 of ITAA 1997 as it is an ACNC entity type under section 50-47 of the ITAA 1997.

Is the ordinary and statutory income of the entity exempt from income tax pursuant to section 50-1 of the Income Tax Assessment Act 1997 (ITAA 1997) on the basis that it is a society, association or club established for community services purposes under item 2.1 of section 50-10 of the ITAA 1997?