Private ruling: Health Organisation and income tax exemption
Date of advice: 2 March 2016
Published: April 2016
Ruling period: August 20XX to 30 June 20YY | July 20YY to 30 June 20ZZ
Date scheme commenced: August 20XX

Ruling: Q1: Is the health organisation a not-for-profit organisation? | A1: Yes. | Q2: Is the health organisation entitled to income tax exemption as a not-for-profit organisation? | A2: No

Relevant facts and circumstances: The entity is a health organisation (the 'Association') seeking to confirm its status as an income tax exempt entity pursuant to section 50-30 of the ITAA 1997. The Rules of the Association contain a non-profit clause and winding up clause, and records show it is incorporated in a particular state. Hence, it is accepted the Association is not-for-profit.

Relevant legislative provisions: Income Tax Assessment Act 1997 50-5 | Income Tax Assessment Act 1997 50-30

Reasons for decision: Summary: To be exempt from income tax under section 50-30 of the ITAA 1997, an organisation must be: • Item 6.1: a public hospital that meets the special conditions of section 50-55, or • Item 6.2: a hospital carried on by a society or association not carried on for the profit or gain of its individual members, or • Item 6.3: a private health insurer within the meaning of the Private Health Insurance Act 2007 not carried on for the profit or gain of its individual members. The objects of the Association as articulated in the constitution. The Association's website states its purpose. From the Association's governing document and the website, it is clear that whilst the Association in focused on health, it is not a public hospital, not-for-profit hospital or a not-for-profit private health insurer. Therefore, the Association is not entitled to income tax exemption under section 50-30 of the ITAA 1997 as a health organisation.