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ARTICLE · 03 APRIL 2009

Prescribed Private Funds – Time is ticking......

Cooper Grace Ward
Cooper Grace Ward
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Cooper Grace Ward

Cooper Grace Ward

Cooper Grace Ward was established in 1980 and has quickly become one of the largest independent...

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A Prescribed Private Fund (PPF) is like a private charity – it is a trust which individuals or companies can control and to which they (and others) can make tax deductible gifts.

AustraliaFinance and Banking

A Prescribed Private Fund (PPF) is like a private charity – it is a trust which individuals or companies can control and to which they (and others) can make tax deductible gifts.

A PPF can only be used as a channel by which money or property is distributed to other deductible gift recipients. The PPF cannot actually undertake charitable activities.

PPFs are popular with people who have philanthropic intentions, but want more flexibility than is achievable by giving large amounts to charities each year. Instead they can establish a PPF, invest the initial contributions and control the distribution of the income each year to selected charities.

The PPF has to be endorsed initially by the ATO and then by Treasury and this can take some time. If you are considering establishing a PPF and intend to make tax deductible donations in the 2009 year, now is the time to get the ball rolling!

PPFs are currently under review by the ATO and the two stage endorsement process is on the agenda.

If you currently have a PPF – are you complying with your accumulation plan? Given the current ATO focus on PPFs at the moment, now is the time to review your plan and act!

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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