Document ID: chunk:federal_register_of_legislation:C2012C00388:clause:12_14:p1
Version: federal_register_of_legislation:C2012C00388
Segment Type: clause
Provision Reference: sch 12 cl 14 (pt 1/2)
Character Range: 88168–90988

14  After Division 156
Insert:

Division 157—Accounting basis of charitable institutions etc.

157‑1  What this Division is about

      The choice available to a charitable institution, trustee of a charitable fund, gift‑deductible entity or government school to account on a cash basis is not restricted as it is for other entities, but other restrictions may apply.

157‑5  Charitable institutions etc. choosing to account on a cash basis

 (1) A charitable institution, a trustee of a charitable fund, a *gift‑deductible entity or a *government school may choose to *account on a cash basis, with effect from the first day of the tax period that the institution, trustee or entity chooses.

 (2) This section does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.

Example: This section does not apply in relation to an entity that is both a charitable institution and a gift‑deductible entity unless the entity is an endorsed charitable institution.

 (3) This section does not apply in relation to a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless the entity is:
 (a) a charitable institution or a trustee of a charitable fund; or
 (b) a *government school; or
 (c) a fund, authority or institution of a kind referred to in paragraph 30‑125(1)(b) of the ITAA 1997.

Note: This subsection excludes from this section certain (but not all) gift‑deductible entities that are only endorsed for the operation of a fund, authority or institution.

 (4) This section has effect despite section 29‑40 (which is about choosing to account on a cash basis).

157‑10  Charitable institutions etc. ceasing to account on a cash basis

 (1) Paragraph 29‑50(1)(a) and subsection 29‑50(3) do not apply in relation to any charitable institution, any trustee of a charitable fund, any *gift‑deductible entity or any *government school.

 (2) This section does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.

Example: This section does not apply in relation to an entity that is both a charitable institution and a gift‑deductible entity unless the entity is an endorsed charitable institution.

 (3) This section does not apply in relation to a *gift‑deductible entity endorsed as a deductible gift recipient (within the meaning of the *ITAA 1997) under section 30‑120 of the ITAA 1997, unless the entity is:
 (a) a charitable institution or a trustee of a charitable fund; or
 (b) a *government school; or
 (c) a fund,