Finalised ATO ruling – ‘In Australia’ condition

Taxation Ruling TR 2019/6 sets out the ATO Commissioner’s view on what the phrase ‘in Australia’ means in the Income Tax Assessment Act 1997, where the Act sets out rules for working out whether certain funds, authorities and institutions are eligible to be Deductible Gift Recipients (DGR) and whether the income of certain NFPs is tax exempt.

The DGR ‘in Australia’ condition refers to the special condition that NFPs must be in Australia to be entitled to DGR endorsement. The ruling provides examples of when an entity:

  • is established or legally recognised in Australia, and
  • makes operational or strategic decisions mainly in Australia.

The ‘in Australia’ condition for exempt entities refers to the special conditions that certain NFPs need to meet in order to be tax exempt. The ruling provides examples of how an entity:

  • meets the physical presence requirement, and
  • demonstrates that it incurs expenditure and pursues objectives principally in Australia.

The finalised ruling is consistent with the guidance published in Draft Taxation Ruling TR 2018/D1 in July 2018.

To view Taxation Ruling 2019/6 in full, click here.

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