I am pleased to announce a further measure to encourage greater corporate and personal philanthropy in Australia. The measure will make it more attractive for individuals or businesses to donate property by allowing income tax deductions for all donations of property to deductible gift recipients to be spread over five years.
This new measure builds upon the package of measures, announced in March 1999 which allow, among other things, the apportionment of deductions for certain gifts to cultural, environmental and heritage organisations. By extending eligibility to all deductible gift recipients today’s announcement will encourage property donations for other worthwhile activities such as health, medical research and education.
Apportionment, or allowing income tax deductions to be spread over five years, will assist potential donors of property who might otherwise be unable to realise the full benefit of the income tax deduction in a single year.
Today’s announcement follows a recommendation of the Community Business Partnership’s Taxation Working Group, chaired by David Gonski. Donations of property valued at more than $5,000, as determined by the Commissioner of Taxation, will qualify.
The new arrangements will apply from 1 July 2002 and involve an estimated revenue cost of $2 million in the first year, rising to $10 million per year from 2007-08 onwards.
The Community Business Partnership was established in 1999 to encourage partnerships between businesses and communities more generally in Australia.
Measures to encourage greater corporate and personal philanthropy are a vital part of building a social coalition, in which government, business, community organisations and individuals all contribute to addressing important social issues.
December 2000