A new draft Bill has now issued following the withdrawal late in
2011 of the first drafting.
For Income Tax Exempt Entities
The new definition of "In Australia" states that if an
entity pursues its objectives by conducting activities that
directly advance those purposes – the entity is not
entitled to be income tax exempt unless it operates
principally in Australia.
If, as part of its operations, an entity gives money or property
(to further its purpose) to other entities that are not income tax
exempt, the use of those funds by the other entity will be taken
into account when determining whether or not the donor entity has
met the "In Australia" special condition (ie a look
through test). One of the conditions of the "In
Australia" test for all income tax exempt entities is that the
entity must comply with its substantive governing rules, ie
continue to pursue the purposes that are expressed.
