Commonwealth Numbered Regulations - Explanatory Statements

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Issued by authority of the Minister for Revenue and Assistant Treasurer

Income Tax Assessment Act 1997

Income Tax Assessment Amendment Regulations 2002 (No. 3)

Section 909-1 of the Income Tax Assessment Act 1997 (the Act) provides that the GovernorGeneral may make regulations, prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Section 50-5 of the Act lists various types of charitable, religious, scientific and educational entities that are exempt from income tax subject to the special conditions listed in section 50-50 of the Act.

Paragraph 50-50(d) of the Act provides that an institution that has a physical presence in Australia, but which incurs its expenditure and pursues its objectives principally outside Australia, is exempt from income tax only if it is prescribed in the Income Tax Assessment Regulations 1997 (the principal Regulations).

The principal Regulations are amended to:

       list an item number and date of effect for each of the first 9 listed institutions that have previously been prescribed in the principal Regulations. This ensures easier referencing for when each institution was actually prescribed; and

       list 3 new entities as prescribed institutions for the purposes of paragraph 50-50(d) of the Act to ensure they are exempt from income tax and to include item numbers and dates of effect for each institution.

The 3 new entities are:

    Item No     

    Name of Fund

    Date of effect


    Alkitab Inc

    1 July 1997


    Millennium Relief and Development Services Incorporated     

    3 September 2001


    Asia-Pacific Educational Research Association Limited

    26 November 2001    

The amending Regulations have effect from the dates approved by the Government as shown in the table. While these are earlier than the date of gazettal for each entity, subsection 48(2) of the Acts Interpretation Act 1901 is not contravened. Subsection 48(2) prohibits the retrospective operation of regulations that adversely affect the rights of, or impose liabilities upon, a person. The amending Regulations do not adversely affect the institutions as they are beneficial to the prescribed institutions concerned.

The amending Regulations commenced on gazettal.

Details of the Regulations are as follows:

Regulation 1       specifies the name of the Regulation as the Income Tax Assessment Amendment Regulations 2002 (No. 3).

Regulation 2 provides that the Regulations commenced on gazettal.

Regulation 3 provides that Schedule 1 amends the Regulations to

       list an item number and date of effect for each of the 9 institutions that have previously been prescribed in the Regulations; and

       list certain institutions as prescribed institutions.

Schedule 1 This inserts an item number and date of effect for the 9 institutions (Items 1 to 9 inclusive) that were previously prescribed and also inserts the names of certain institutions as prescribed institutions (items 10 to 12 inclusive) in Regulation 50-50.1 for the purposes of Division 50 of the Act.

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