Inserts for
Tax Laws Amendment (2012 Measures No. 4) Bill 2012: tax exempt body “in Australia” requirements

EXPOSURE DRAFT

Commencement information	
Column 1	Column 2	Column 3	
Provision(s)	Commencement	Date/Details	
1.  Schedule 1	The day this Act receives the Royal Assent.		

Schedule 1—Restating and standardising the special conditions for tax concession entities
Part 1—Deductible gift recipients
Income Tax Assessment Act 1997
1  Subsection 30‑15(2) (paragraph (a) of the cell at table item 1, column headed “Special conditions”)
Repeal the paragraph.
2  At the end of Subdivision 30‑A
Add:
30‑18  Fund, authority or institution must operate in Australia etc.
	(1)	A fund, authority or institution satisfies the conditions in this section if:
	(a)	it is established in Australia; and
	(b)	it operates solely in Australia; and
	(c)	it pursues its purposes solely in Australia.
	(2)	Despite subsection (1), a fund, authority or institution that operates or pursues purposes outside Australia does not fail the conditions in paragraphs (1)(b) and (c) if:
	(a)	its activities outside Australia are merely incidental to its activities in Australia; or
	 (b)	its activities outside Australia are minor in extent and importance when considered with reference to its activities in Australia.
	(3)	If a *deductible gift recipient gives money or property to another entity that is not a deductible gift recipient, take into account the use of the money or property by that other entity (or any other entity) into account when determining whether the deductible gift recipient satisfies the requirements in paragraphs (1)(b) and (c).
	(4)	A fund, authority or institution covered by section 30‑80 (international affairs deductible gift recipients) satisfies the conditions in this section if it satisfies the conditions in paragraph (1)(a).
	(5)	A fund, authority or institution covered by item 6.1.1 of the table in subsection 30‑55(1) (register of environmental organisations) satisfies the conditions in this section if:
	(a)	it satisfies the condition in paragraph (1)(a); and
	(b)	the *Environment Secretary makes a determination in relation to the fund, authority or institution under subsection 30‑19(1).
30‑19  Determination by Environment Secretary
	(1)	The *Environment Secretary may make a determination in relation to a fund, authority or institution if the Environment Secretary considers that the fund, authority or institution meets the requirements specified in the regulations for the purposes of this subsection.
Review of determination
	(2)	A fund, authority or institution may apply to the *AAT for review of a decision (as defined in the Administrative Appeals Tribunal Act 1975):
	(a)	to make a determination under subsection 30‑19(1) for the fund, authority or institution; or
	(b)	to not make a determination under that subsection for the fund, authority or institution.
3  Subsection 30‑20(1) (table item 1.1.2, column headed “Fund, authority or institution”)
Omit “otherwise than for the purposes of profit or gain to the individual members of the society or association”, substitute “that is a *not‑for‑profit entity”.
4  Subsection 30‑25(1) (paragraph (c) of the cell at table item 2.1.10, column headed “Fund, authority or institution”)
Repeal the paragraph, substitute:
(c) a society or association that is a *not‑for‑profit entity	
5  Subsection 30‑25(2) (cell at table item 2.2.9, column headed “Fund, authority or institution”)
Repeal the cell, substitute:
a company that conducts life education programs under the auspices of the Life Education Centre if the company is a *not‑for‑profit entity	
6  Paragraph 30‑35(4)(c)
Repeal the paragraph, substitute:
	(c)	a company that is a *not‑for‑profit entity.
7  Subsection 30‑70(1) (table item 8.1.1, column headed “Fund, authority or institution”)
Omit “*non‑profit company”, substitute “company that is a *not‑for‑profit entity”.
8  Subsection 30‑70(1) (paragraph (a) of the cell at table item 8.1.2, column headed “Fund, authority or institution”)
Omit “*non‑profit company”, substitute “company that is a *not‑for‑profit entity”.
9  Subsection 30‑280(1)
Repeal the section, substitute:
	(1)	The *Environment Secretary must enter on the register:
	(a)	each *environmental organisation, and the public fund that it maintains, that he or she has been directed to enter by the Treasurer and the *Environment Minister; and
	(b)	each environmental organisation for which a determination has been made under subsection 30‑19(1). 

Part 2—Tax exempt entities
Income Tax Assessment Act 1936
10  Paragraph 23AG(1AA)(c)
Omit “paragraph 50‑50(c) or (d)”, substitute “paragraph 50‑51(2(c) or (d)”.
Income Tax Assessment Act 1997
11  Before Subdivision 50‑A
Insert:
Guide to Division 50
50‑1  What this Division is about
Certain entities that satisfy the conditions in this Division may be endorsed as exempt from income tax.
An entity will not generally be exempt from income tax unless it satisfies all the following conditions:
•	it operates principally in Australia;
•	it pursues its purposes principally in Australia;
•	it complies with all the substantive requirements in its governing rules;
•	it uses its income and assets solely to pursue the purposes for which it was established;
•	it is a not‑for‑profit entity.
Some entities are not required to satisfy some of these requirements.
12  Section 50‑1
Renumber as section 50‑3.
13  Section 50‑5 (cells at table items 1.3 and 1.4, column headed “Special conditions”)
Repeal the cells, substitute:
see section 50‑50	
14  Section 50‑5 (cells at table items 1.5A and 1.5B, column headed “Special conditions”)
Repeal the cells, substitute:
see sections 50‑50 and 50‑52	
15  Section 50‑5 (cells at table items 1.6 and 1.7, column headed “Special conditions”)
Repeal the cells, substitute:
see section 50‑50	
16  Section 50‑10 (cell at table item 2.1, column headed “Special conditions”)
Repeal the cell, substitute:
see section 50‑50	
17  Section 50‑15 (paragraph (b) of the cell at table item 3.1, column headed “Special conditions”)
Repeal the paragraph, substitute:
(b) satisfies the conditions in section 50‑50	
18  Section 50‑15 (cell at table item 3.2, column headed “Special conditions”)
Repeal the cell, substitute:
see section 50‑50	
19  Section 50‑20 (cell at table item 4.1, column headed “Special conditions”)
Repeal the cell, substitute:
see sections 50‑50 and 50‑52	
20  Section 50‑30 (cells at table items 6.1 and 6.2, column headed “Special conditions”)
Repeal the cells, substitute:
see section 50‑50	
21  Section 50‑30 (cell at table item 6.3, column headed “Special conditions”)
Repeal the cell, substitute:
the entity is a *not‑for‑profit entity	
22  Section 50‑40 (cells at table items 8.1, 8.2 and 8.3, column headed “Special conditions”)
Repeal the cells, substitute:
the entity is a *not‑for‑profit entity	
23  Section 50‑45 (cells at table items 9.1 and 9.2, column headed “Special conditions”)
Repeal the cells, substitute:
see section 50‑50	
24  Section 50‑50
Repeal the section, substitute:
50‑50  Special conditions for certain items
General
	(1)	An entity covered by item 1.1, 1.2, 1.3, 1.4, 1.5A, 1.5B, 1.6, 1.7, 2.1, 3.1, 3.2, 4.1, 6.1, 6.2, 9.1 or 9.2 is not exempt from income tax unless it:
	(a)	is a *not‑for‑profit entity; and
	(b)	satisfies the conditions in subsection (2) (about operating and pursuing its purposes in Australia); and
	(c)	satisfies the conditions in subsection (3).
Operating and pursuing purposes in Australia
	(2)	The entity must:
	(a)	operate principally in Australia; and
	(b)	pursue its purposes principally in Australia.
Other conditions
	(3)	The entity must:
	(a)	comply with all the substantive requirements in its governing rules; and
	(b)	use its income and assets solely for the purpose for which the entity is established and operated and for which it is entitled to be exempt from tax.
	(4)	If an entity gives money or property to another entity that is not an *exempt entity, the use of the money by the recipient (or any other entity) must be taken into account when determining whether the first mentioned entity satisfies the requirements in paragraph (2)(a) and (b).
	(5)	If the entity complies with the conditions (if any) prescribed in the regulations for the purposes of this subsection, disregard the use of the following amounts in determining for the purposes of this Subdivision whether an entity operates and pursues its purposes in Australia:
	(a)	an amount received by the entity as a grant from a *government entity; or
	(b)	an amount received by the entity as a gift or contribution (whether of money or other property) in circumstances where the provider was not entitled to a deduction under Division 30 in respect of the gift or contribution.
50‑51  Exemption from conditions about not‑for‑profit entities and entities pursuing their purposes in Australia
	(1)	The condition in paragraph 50‑50(1)(a) does not apply to the following entities:
	(a)	an entity covered by section 50‑15 (about employers and employees);
	(b)	a *government entity covered by item 1.4 in the table in section 50‑5 (about public educational institutions);
	(c)	a government entity covered by item 6.1 in the table in section 50‑30 (about public hospitals).
	(2)	The conditions in subsection 50‑50(2) do not apply to any of the following:
	(a)	an entity endorsed as a *deductible gift recipient (other than in respect of operating a fund, authority or institution); or
	(b)	an entity endorsed as a deductible gift recipient for the operation of a fund, authority or institution, to the extent that it operates that fund, authority or institution; or
	(c)	an entity that:
	(i)	is a foreign resident that is exempt from *foreign income tax in the country in which it is resident; and
	(ii)	is prescribed in the regulations for the purposes of this subsection; and
	(iii)	satisfies the conditions (if any) prescribed in the regulations for the purposes of this subsection.
	(d)	an entity that:
	(i)	is an Australian resident; and
	(ii)	operates and pursues its purposes principally outside Australia; and
	(iii)	is prescribed in the regulations for the purposes of this subsection; and
	(iv)	satisfies the conditions (if any) prescribed in the regulations for the purposes of this subsection.
Note:	Different requirements apply to deductible gift recipients: see section 30‑18.
25  Sections 50‑55, 50‑60, 50‑65, 50‑70 and 50‑72
Repeal the sections.
26  Section 50‑75
Repeal the section.

Part 3—Miscellaneous amendments
Income Tax Assessment Act 1936
27  Section 121C (paragraph (a) of the definition of overseas charitable institution)
Omit “if the institution had a physical presence in Australia and incurred its expenditure and pursued its objectives principally in Australia;”, substitute “if it satisfied the conditions in subsection 50‑50(2) of that Act;”.
Income Tax Assessment Act 1997
28  Section 207‑117
Repeal the section, substitute:
207‑117  Residency requirement
		An entity satisfies the residency requirement for the purposes of determining whether, at the time a *franked distribution is made, the entity is an *exempt institution that is eligible for a refund, if it satisfies the conditions in section 50‑50 at all times during the income year in which the distribution is made.
29  Subsection 995‑1(1)
Insert:
not‑for‑profit entity means an entity that:
	(a)	is not carried on for the profit or gain of its owners or *members, neither while it is operating nor upon winding up; and
	(b)	under an *Australian law, *foreign law, or the entity’s governing rules, is prohibited from distributing, and does not distribute, its profits or assets to its owners or members (whether in money, property or other benefits), neither while it is operating nor upon winding up, unless the distribution:
	(i)	is made to another not‑for‑profit entity with a similar purpose; or
	(ii)	is genuine compensation for services provided to, or reasonable expenses incurred on behalf of, the entity.
Taxation Administration Act 1953
30  At the end of Division 353 in Schedule 1
Add:
353‑30  Checking status of tax exempt entities
	(1)	The Commissioner may require an entity that is a prescribed entity mentioned in paragraph 50‑51(2)(c) or (d) of the Income Tax Assessment Act 1997 to give the Commissioner information or a document that is relevant to its status as a prescribed entity. The entity must comply with the requirement.
Note:	Failure to comply with this subsection is an offence against section 8C of this Act.
	(2)	If the Commissioner is satisfied of any of the matters set out in subsection (4) in relation to an entity that is a prescribed entity mentioned in paragraph 50‑51(2)(c) or (d) of the Income Tax Assessment Act 1997, the Commissioner must, within 28 days, give written notice to the Minister about that fact.
	(3)	The Minister may only disclose information provided under subsection (2) for a purpose relating to the entity’s status as a prescribed entity mentioned in paragraph 50‑51(2)(c) or (d) of the Income Tax Assessment Act 1997.
	(4)	The matters are as follows:
	(a)	there is a change in the principal purpose of the entity;
	(b)	the entity fails or ceases to comply with any rules or conditions made by the Prime Minister or any other Minister relating to the recipient being a prescribed entity mentioned in paragraph 50‑51(2)(c) or (d) of the Income Tax Assessment Act 1997.
	(5)	The requirement in subsection (1):
	(a)	is to be made by notice in writing to the entity; and
	(b)	may ask the entity to give the information in writing; and
	(c)	must specify:
	(i)	the information or document the entity is to give; and
	(ii)	the period within which the entity is to give the information or document.
The period specified under subparagraph (c)(ii) must end at least 28 days after the notice is given.
	(6)	In a prosecution of a person for an offence against section 8C of this Act because of this section as it applies because of Division 444 in this Schedule (about obligations of entities on behalf of other entities), it is a defence if the person proves that the person:
	(a)	did not aid, abet, counsel or procure the act or omission because of which the offence is taken to have been committed; and
	(b)	was not in any way, by act or omission, directly or indirectly, knowingly concerned in, or party to, the act or omission because of which the offence is taken to have been committed.

Part 4—Consequential amendments
A New Tax System (Australian Business Number) Act 1999
31  Section 5 (heading)
Repeal the heading, substitute:
5  Application to government entities, not‑for‑profit sub‑entities, superannuation funds and certain RSE licensees
32  Subsection 5(1)
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
33  Section 41 (definition of Non‑profit sub‑entity)
Repeal the definition.
34  Section 41
Insert:
not‑for‑profit sub‑entity has the meaning given by the A New Tax System (Goods and Services Tax) Act 1999.
A New Tax System (Goods and Services Tax) Act 1999
35  Paragraph 9‑15(3)(b)
Omit “non‑profit body”, substitute “body that is a *not‑for‑profit entity”.
36  Subsection 23‑15(1)
Omit “non‑profit body”, substitute “body that is a *not‑for‑profit entity”.
37  Subsection 23‑15(2)
Omit “non‑profit body”, substitute “body that is a *not‑for‑profit entity”.
38  Paragraph 40‑130(1)(a)
Omit “non‑profit body”, substitute “body that is a *not‑for‑profit entity”.
39  Paragraph 40‑130(1)(b)
Omit “non‑profit body”, substitute “body”.
40  Subsection 40‑130(2)
Repeal the subsection, substitute:
	(2)	However, the *not‑for‑profit entity:
	(a)	cannot revoke the choice within 12 months after the day on which it made the choice; and
	(b)	cannot make a further choice within 12 months after the day on which it revoked a previous choice.
41  Paragraph 40‑165(3)(b)
Omit “non‑profit”, substitute “not‑for‑profit”.
42  Section 48‑1
Omit “non‑profit bodies”, substitute “not‑for‑profit entities”.
43  Subsection 48‑10(2)
Repeal the subsection, substitute:
	(2)	Paragraph (1)(b) does not apply if:
	(a)	the entity is a *not‑for‑profit entity; and
	(b)	all the other *members of the *GST group or proposed GST group are not‑for‑profit entities; and
	(c)	the entity and all those other members are members of the same entity (all the members of which are not‑for‑profit entities).
Note 1:	For the membership requirements of not‑for‑profit sub‑entities, see section 63‑50.
Note 2:	For the membership requirements of a GST group of government related entities, see section 149‑25.
44  Paragraph 63‑5(2)(aa)
Omit “non‑profit body”, substitute “body that is a *not‑for‑profit entity”.
45  Paragraph 63‑5(2)(b)
Omit “non‑profit body”, substitute “body that is a not‑for‑profit entity”.
46  Subsection 63‑15(3)
Omit “non‑profit sub‑entity”, substitute “not‑for‑profit sub‑entity”.
47  Section 63‑25 (heading)
Repeal the heading, substitute:
63‑25  Registration turnover threshold for not‑for‑profit sub‑entities
48  Paragraph 63‑25(2)(a)
Omit “*non‑profit sub‑entities”, substitute “*not‑for‑profit sub‑entities”.
49  Paragraph 63‑25(2)(a)
Omit “non‑profit entities”, substitute “*not‑for‑profit entities”.
50  Paragraph 63‑25(2)(b)
Omit “*non‑profit sub‑entities”, substitute “not‑for‑profit sub‑entities”.
51  Paragraph 63‑25(2)(b)
Omit “non‑profit entities”, substitute “not‑for‑profit entities”.
52  Section 195‑1 (definition of non‑profit association)
Repeal the definition.
53  Section 195‑1 (definition of Non‑profit sub‑entity)
Repeal the definition.
54  Section 195‑1
Insert:
not‑for‑profit entity has the meaning given by the *ITAA 1997.
55  Section 195‑1
Insert:
not‑for‑profit sub‑entity has the meaning given by subsection 63‑15(3).
Extension of Charitable Purpose Act 2004
56  Subsection 4(1)
Omit “non‑profit”, substitute “not‑for‑profit”.
Fringe Benefits Tax Assessment Act 1986
57  Subsection 5B(1E) (method statement, paragraph (d) of step 2)
Omit “by non‑profit societies and associations”, substitute “by societies and associations that are rebatable employers”.
58  Subparagraph 57A(2)(b)(iii)
Repeal the subparagraph, substitute:
	(iii)	a hospital carried on by a society or association that is a rebatable employer;
59  Subsection 57A(4)
Repeal the subsection, substitute:
	(4)	A benefit provided in respect of the employment of an employee is an exempt benefit if the employer of the employee is a hospital carried on by a society or association that is a rebatable employer.
60  Subparagraph 58(1)(a)(ii)
Repeal the subparagraph, substitute:
	(ii)	a religious institution; or
61  After subparagraph 58(1)(a)(ii)
Insert:
	(iii)	a company that is a not‑for‑profit entity;
62  Paragraph 58G(2)(a)
Repeal the paragraph, substitute:
	(a)	a scientific institution that is a not‑for‑profit entity; or
63  Section 65J (heading)
Repeal the heading, substitute:
65J  Rebate for certain not‑for‑profit employers etc.
64  Subsections 65J(1) and (1A)
Repeal the subsections, substitute:
Rebatable employer
	(1)	An employer is a rebatable employer for a year of tax if the employer:
	(a)	is exempt from income tax at any time during the year of tax under any of the provisions set out in the following table; and
	(b)	satisfies the special conditions (if any) set out in the table.

Rebatable employer	
Item	Column 1
Type of employer	Column 2
Special conditions	
1	a charitable institution covered by item 1.1 of the table in section 50‑5 of the Income Tax Assessment Act 1997

	The charitable institution is not a rebatable employer for the year of tax if it:
(a) is a public benevolent institution; or
(b) is a health promotion charity; or
(c) is an institution of the Commonwealth, a State or a Territory; or
(d) has not been endorsed under subsection 123E(1).	
2	a religious institution covered by item 1.2 of the table in section 50‑5 of the Income Tax Assessment Act 1997	None	
3	a scientific institution covered by item 1.3 of the table in section 50‑5 of the Income Tax Assessment Act 1997	The institution is not an institution of the Commonwealth, a State or a Territory unless it:
(a) is an institution established by a law of the Commonwealth, a State or a Territory; and
(b) is not conducted by or on behalf of the Commonwealth, a State or a Territory; and
(c) is engaged solely in research into the causes, prevention or cure of diseases in humans.	
4	a public educational institution covered by item 1.4 of the table in section 50‑5 of the Income Tax Assessment Act 1997	The institution is not an institution established by a law of the Commonwealth, a State or a Territory unless it:
(a) is not conducted by or on behalf of the Commonwealth, a State or a Territory; and
(b) is a preschool or school (other than a tertiary institution).	
5	a society, association or club:
(a) established for the encouragement of science; and
(b) covered by item 1.7 of the table in section 50‑5 of the Income Tax Assessment Act 1997	See subsection (5) of this section.	
6	a society, association or club:
(a) established for community service purposes (except political or lobbying purposes); and
(b) covered by item 2.1 of the table in section 50‑10 of the Income Tax Assessment Act 1997	See subsection (5) of this section.	
7	an employer association or an employee association covered by item 3.1 of the table in section 50‑15 of the Income Tax Assessment Act 1997	None	
8	a trade union covered by item 3.2 of the table in section 50‑15 of the Income Tax Assessment Act 1997	None	
9	a society or association:
(a) established for the purpose of promoting the development of:
(i) aviation; or
(ii) tourism; and
(b) covered by item 8.1 of the table in section 50‑40 of the Income Tax Assessment Act 1997	See subsection (5) of this section.	
10	a society or association:
(a) established for the purpose of promoting the development of any of the following Australian resources:
(i) agricultural resources;
(ii) horticultural resources;
(iii) industrial resources;
(iv) manufacturing resources;
(v) pastoral resources;
(vi) viticultural resources;
(vii) aquacultural resources;
(viii) fishing resources; and
(b) covered by item 8.2 of the table in section 50‑40 of the Income Tax Assessment Act 1997	See subsection (5) of this section.	
11	a society or association:
(a) established for the purpose of promoting the development of Australian information and communications technology resources; and
(b) covered by item 8.3 of the table in section 50‑40 of the Income Tax Assessment Act 1997	See subsection (5) of this section.	
12	a society, association or club:
(a) established for the encouragement of any of the following:
(i) animal racing;
(ii) art;
(iii) a game or sport;
(iv) literature;
(v) music; and
(b) covered by item 9.1 of the table in section 50‑45 of the Income Tax Assessment Act 1997	See subsection (5) of this section.	
13	a society, association or club:
(a) established for musical purposes; and
(b) covered by item 9.2 of the table in section 50‑45 of the Income Tax Assessment Act 1997	See subsection (5) of this section.	
Note:	Subsection (3) affects the kind of employers that may be considered to be an institution of government.
65  Subsection 65J(5)
Repeal the subsection, substitute:
	(5)	A society, association or club is not covered by item 5, 6, 9, 10, 11, 12 or 13 for a year of tax if it is:
	(a)	an incorporated company where all the stock or shares in the capital of the company is or are beneficially owned by:
	(i)	the Commonwealth, a State or a Territory; or
	(ii)	an authority or institution of the Commonwealth, a State or a Territory; or
	(b)	an incorporated company where the company is limited by guarantee and the interests and rights of the members in or in relation to the company are beneficially owned by:
	(i)	the Commonwealth, a State or a Territory; or
	(ii)	an authority or institution of the Commonwealth, a State or a Territory.
66  Section 123E
Repeal the section, substitute:
123E  Endorsement by Commissioner as a charitable institution (other than public benevolent institution or health promotion charity)
	(1)	The Commissioner must endorse an entity if:
	(a)	it is a charitable institution covered by item 1 of the table in subsection 65J(1); and
	(b)	it has applied for endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953; and
	(c)	it has an ABN.
67  Subsection 135Q(1) (note)
Omit “non‑profit companies”, substitute “not‑for‑profit entities”.
68  Subsection 136(1) (definition of business operations)
Repeal the definition, substitute:
business operations, in relation to a government body or a company that is a not‑for‑profit entity, includes any operations or activities carried out by that body or company.
69  Subsection 136(1) (definition of non‑profit company)
Repeal the definition.
70  Subsection 136(1)
Insert:
not‑for‑profit entity has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
71  Subsection 136(1)
Insert:
rebatable employer has the meaning given by section 65J.
72  Paragraph 140(1B)(c)
Repeal the paragraph, substitute:
	(c)	a hospital carried on by a not‑for‑profit entity that is a rebatable employer;
73  Subparagraph 140(1C)(b)(iii)
Repeal the subparagraph, substitute:
	(iii)	a hospital carried on by a not‑for‑profit entity that is a rebatable employer.
Fuel Tax Act 2006
74  Division 41 (heading)
Repeal the heading, substitute:
Division 41—Fuel tax credits for business taxpayers and not‑for‑profit entities
75  Section 41‑1
Omit “non‑profit bodies”, substitute “bodies that are not‑for‑profit entities”.
76  Paragraph 41‑5(3)(a)
Omit “non‑profit body”, substitute “body that is a *not‑for‑profit entity”.
77  Section 70‑1
Omit “non‑profit sub‑entities”, substitute “not‑for‑profit sub‑entities”.
78  Section 70‑30 (heading)
Repeal the heading, substitute:
70‑30  Application of fuel tax law to GST branches, resident agents and not‑for‑profit sub‑entities
79  Section 70‑30 (table heading)
Omit “non‑profit sub‑entities”, substitute “not‑for‑profit sub‑entities”.
80  Section 70‑30 (table item 3, column 1)
Omit “non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
81  Section 110‑5
Insert:
not‑for‑profit entity has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
82  Section 110‑5
Insert:
not‑for‑profit sub‑entity has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
Income Tax Act 1986
83  Subsection 3(1)
Insert:
friendly society dispensary has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
84  Subsection 3(1) (definition of non‑profit company)
Repeal the definition.
85  Subsection 3(1)
Insert:
not‑for‑profit entity has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
86  Subsection 5(3)
Omit “a non‑profit company”, substitute “a company that is a not‑for‑profit entity or a friendly society dispensary”.
Income Tax Assessment Act 1936
87  Subsection 6(1)
Insert:
not‑for‑profit entity has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
88  Paragraph 103A(2)(c)
Repeal the paragraph, substitute:
	(c)	at all times since its formation and, during the year of income, the company has been a not‑for‑profit entity; or
Income Tax Assessment Act 1997
89  Subsection 50‑52(3) (note)
Omit “sections 50‑50, 50‑57, 50‑60 and 50‑72”, substitute “sections 50‑50 and 50‑57”.
90  Subparagraph 50‑110(5)(b)(ii)
Omit “covers the entity; or”, substitute “, or item 4.1 of the table in section 50‑20, covers the entity.”.
91  Paragraph 50‑110(5)(c)
Repeal the paragraph.
92  Subsection 165‑12(7A)
Repeal the subsection, substitute:
	(7A)	If the company is:
	(a)	a *not‑for‑profit entity; or
	(b)	a *friendly society dispensary; or
	(c)	a *mutual affiliate company; or
	(d)	a *mutual insurance company;
during the whole of the *ownership test period, the conditions in subsections (3) and (4) are taken to have been satisfied by the company.
93  Subsection 165‑37(4A)
Repeal the subsection, substitute:
	(4A)	If the company is:
	(a)	a *not‑for‑profit entity; or
	(b)	a *friendly society dispensary; or
	(c)	a *mutual affiliate company; or
	(d)	a *mutual insurance company;
during the whole of the *ownership test period, the conditions in paragraphs (1)(b) and (c) are taken to have been satisfied by the company.
94  Subsection 165‑115C(4A)
Repeal the subsection, substitute:
	(4A)	If the company is:
	(a)	a *not‑for‑profit entity; or
	(b)	a *friendly society dispensary; or
	(c)	a *mutual affiliate company; or
	(d)	a *mutual insurance company;
during the whole of the period from the reference time to the *test time, the test time is taken not to be a *changeover time in respect of the company because of the application of paragraphs (1)(b) and (c).
95  Subsection 165‑115L(5)
Repeal the subsection, substitute:
	(5)	If the company is:
	(a)	a *not‑for‑profit entity; or
	(b)	a *friendly society dispensary; or
	(c)	a *mutual affiliate company; or
	(d)	a *mutual insurance company;
during the whole of the period from the reference time to the *test time, the test time is taken not to be an *alteration time in respect of the company because of the application of paragraphs (1)(b) and (c).
96  Subsection 165‑123(7A)
Repeal the subsection, substitute:
	(7A)	If the company is:
	(a)	a *not‑for‑profit entity; or
	(b)	a *friendly society dispensary; or
	(c)	a *mutual affiliate company; or
	(d)	a *mutual insurance company;
during the whole of the *ownership test period, the conditions in subsections (3) and (4) are taken to have been satisfied by the company.
97  Paragraph 165‑202(1)(f)
Repeal the paragraph, substitute:
	(f)	a company that is a *not‑for‑profit entity;
98  Subsection 166‑145(6)
Repeal the subsection, substitute:
Conditions in subsections (3) and (4) satisfied by not‑for‑profit and mutual companies
	(6)	If the company is:
	(a)	a *not‑for‑profit entity; or
	(b)	a *friendly society dispensary; or
	(c)	a *mutual affiliate company; or
	(d)	a *mutual insurance company;
during the whole of the *test period, the conditions in subsections (3) and (4) are taken to have been satisfied by the company.
99  Paragraph 315‑15(a) (note)
Repeal the note, substitute:
	Note: Item 6.3 of the table in section 50‑30 applies to a private health insurer (within the meaning of the Private Health Insurance Act 2007) that is a not‑for‑profit entity.
100  Subsection 703‑15(2) (paragraph (c) of the cell at table item 2, column 2)
Repeal the paragraph, substitute:
(c) the entity must not be a *friendly society dispensary or a company that is a *not‑for‑profit entity.
101  Subsection 719‑10(1) (table, column 1)
Omit “The entity must not be a non‑profit company (as defined in the Income Tax Rates Act 1986)”, substitute “The entity must not be a *friendly society dispensary or a company that is a *not‑for‑profit entity”.
102  Subparagraph 719‑15(3)(a)(vii)
Repeal the subparagraph, substitute:
	(vii)	a *friendly society dispensary, or a company that is a *not‑for‑profit entity, that is a wholly‑owned subsidiary of another tier‑1 company of the top company;
103  Subsection 995‑1(1) (subparagraph (b)(vi) of the definition of eligible Division 166 company)
Repeal the subparagraph, substitute:
	(vi)	a company that is a *not‑for‑profit entity; or
104  Subsection 995‑1(1) (subparagraph (b)(viii) of the definition of eligible Division 166 company)
Omit “(iv) to (vii).”, substitute “(iv) to (vii); or”.
105  Subsection 995‑1(1) (at the end of the definition of eligible Division 166 company)
Add:
	(ix)	a *friendly society dispensary.
106  Subsection 995‑1(1) (definition of non‑profit company)
Repeal the definition.
107  Subsection 995‑1(1) (definition of non‑profit sub‑entity)
Repeal the definition.
108  Subsection 995‑1(1)
Insert:
not‑for‑profit sub‑entity has the meaning given by section 195‑1 of the *GST Act.
Income Tax Rates Act 1986
109  Subsection 3(1)
Insert:
friendly society dispensary has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
110  Subsection 3(1) (definition of non‑profit company)
Repeal the definition.
111  Subsection 3(1)
Insert:
not‑for‑profit entity has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
112  Subsection 23(6)
Omit “a non‑profit company”, substitute “a company that is a not‑for‑profit entity or a friendly society dispensary”.
Taxation Administration Act 1953
113  Subsection 16‑142(2) in Schedule 1
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
114  Subsection 110‑50(2) in Schedule 1 (table item 50, column headed “Decision”)
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
115  Subsection 382‑5(7) in Schedule 1
Omit “(non‑profit sub‑entities)”, substitute “(not‑for‑profit sub‑entities)”.
116  Paragraphs 426‑5(f) and 426‑65(1)(f) in Schedule 1
Omit “paragraph 65J(1)(baa)”, substitute “item 1 of the table in subsection 65J(1)”.
117  Section 444‑85 in Schedule 1 (heading)
Repeal the heading, substitute:
444‑85  Not‑for‑profit sub‑entities
118  Subsection 444‑85(1) in Schedule 1
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.

Part 5—Definition changes to the A New Tax System (Goods and Services Tax) Act 1999
A New Tax System (Goods and Services Tax) Act 1999
119  Section 17‑99 (cell at table item 9A, column headed “For this case ...”)
 Repeal the cell, substitute:
Not‑for‑profit sub‑entities	
120  Section 23‑99 (cell at table item 1B, column headed “For this case ...”)
 Repeal the cell, substitute:
Not‑for‑profit sub‑entities	
121  Section 25‑49 (cell at table item 2, column headed “For this case…”)
Repeal the cell, substitute:
Not‑for‑profit sub‑entities	
122  Section 25‑99 (cell at table item 1B, column headed “For this case…”)
Repeal the cell, substitute:
Not‑for‑profit sub‑entities	
123  Section 37‑1 (cell at table item 20A, column headed “For this case…”)
Repeal the cell, substitute:
Not‑for‑profit sub‑entities	
124  Division 63 (heading)
Repeal the heading, substitute:
Division 63—Not‑for‑profit sub‑entities
125  Section 63‑1
Omit “non‑profit entities”, substitute “not‑for‑profit entities”.
126  Section 63‑20 (heading)
Repeal the heading, substitute:
63‑20  Not‑for‑profit sub‑entities may register
127  Subsection 63‑20(1)
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
128  Subsection 63‑30(2)
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
129  Subsection 63‑25 (heading)
Repeal the heading, substitute:
63‑25  Registration turnover threshold for not‑for‑profit sub‑entities
130  Subsection 63‑25(1)
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
131  Subsection 63‑25(1)
Omit “non‑profit body”, substitute “not‑for‑profit entity”.
132  Paragraph 63‑25(2)(a)
Omit “*non‑profit sub‑entities”, substitute “*not‑for‑profit sub‑entities”.
133  Paragraph 63‑25(2)(a)
Omit “non‑profit entities”, substitute “not‑for‑profit entities”.
134  Paragraph 63‑25(2)(b)
Omit “*non‑profit sub‑entities”, substitute “*not‑for‑profit sub‑entitites”.
135  Paragraph 63‑25(2)(b)
Omit “non‑profit entities”, substitute “not‑for‑profit entities”.
136  Section 63‑30 (heading)
Repeal the heading, substitute:
63‑30  When not‑for‑profit sub‑entities must apply for cancellation of registration
137  Subsection 63‑30(1)
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
138  Subsection 63‑30(2)
Omit “*non‑profit sub‑entities”, substitute “*not‑for‑profit sub‑entities”.
139  Section 63‑35 (heading)
Repeal the heading, substitute:
63‑35  When the Commissioner must cancel registration of not‑for‑profit sub‑entities
140  Subsection 63‑35(1)
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
141  Subsection 63‑35(3)
Omit “*non‑profit sub‑entities”, substitute “*not‑for‑profit sub‑entities”.
142  Section 63‑40 (heading)
Repeal the heading, substitute:
63‑40  Effect on adjustments of becoming a not‑for‑profit sub‑entity
143  Subsection 63‑40(1)
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
144  Subsection 63‑40(1)
Omit “non‑profit sub‑entity”, substitute “not‑for‑profit sub‑entity”.
145  Paragraph 63‑40(1)(a)
Omit “non‑profit sub‑entity” (wherever occurring), substitute “not‑for‑profit sub‑entity”.
146  Subsection 63‑40(2)
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
147  Paragraph 63‑40(2)(a)
Omit “non‑profit sub‑entity”, substitute “not‑for‑profit sub‑entity”.
148  Paragraph 63‑40(2)(b)
Omit “non‑profit sub‑entity”, substitute “not‑for‑profit sub‑entity”.
149  Section 63‑45 (heading)
Repeal the heading, substitute:
63‑45  Effect on adjustments of ceasing to be a non‑profit sub‑entity
150  Subsection 63‑45(1)
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
151  Subsection 63‑45(1)
Omit “non‑profit sub‑entity”, substitute “not‑for‑profit sub‑entity”.
152  Subsection 63‑45(2)
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
153  Section 63‑50
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
154  Subparagraphs 63‑50(e)(i) and (ii)
Omit “non‑profit sub‑entity”, substitute “not‑for‑profit sub‑entity”.
155  Section 72‑92 (heading)
Repeal the heading, substitute:
72‑92  Not‑for‑profit sub‑entities
156  Section 72‑92
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
157  Section 72‑92
Omit “non‑profit sub‑entity”, substitute “not‑for‑profit sub‑entity”.
158  Paragraph 72‑92(b)
Omit “non‑profit sub‑entity”, substitute “not‑for‑profit sub‑entity”.
159  Paragraph 75‑11(8)(b)
Omit “*non‑profit sub‑entity”, substitute “*not‑for‑profit sub‑entity”.
160  Subsection 184‑1(4) (note)
Omit “non‑profit sub‑entities”, substitute “not‑for‑profit sub‑entities”.

Part 6—Application and transitional provisions
161  Application provisions
(1)	The amendments made by this Schedule apply to income years starting on or after the commencement of this item.
(2)	Subitem (3) applies if:
	(a)	an entity is a not‑for‑profit entity; and
	(b)	the entity is required to amend its constitution or constituent documents as a result of the amendments made by Part 4 of this Schedule.
(3)	Despite subitem (1), the amendments made by Part 4 of this Schedule apply in relation to the entity to income years starting on or after the period of 12 months starting at the commencement of this item.
162  Transitional provisions
(1)	Regulations:
	(a)	made for the purposes of subsection 23‑15(2) of the A New Tax System (Goods and Services Tax) Act 1999; and
	(b)	in force immediately before the commencement of this item;
have effect from that commencement as if they had been made for the purposes of that subsection as amended by this Schedule.
(2)	Regulations:
	(a)	made for the purposes of section 50‑50, 50‑55 or 50‑70 of the Income Tax Assessment Act 1997; and
	(b)	in force immediately before the commencement of this item;
have effect from that commencement as if they had been made for the purposes of subparagraphs 50‑51(2)(c)(ii) and (2)(d)(iii) of that Act as substituted by this Schedule.