The existing Public Ancillary Fund Guidelines 2011, which set out the rules for a public ancillary fund to obtain and maintain deductible gift recipient status (DGR), are scheduled to automatically sunset on 1 April 2022.
The draft Taxation Administration (Public Ancillary Fund) Guidelines 2022 (the ‘draft guidelines’) propose to remake the guidelines, with minimal changes to the substantive requirements.
The majority of the changes made by the draft guidelines are technical changes to reflect current drafting practice, improve clarity, and to align the public ancillary fund guidelines with the relevant requirements from the Taxation Administration (Private Ancillary Fund) Guidelines 2019.
The one substantive change in the draft guidelines is that public and private ancillary funds will be able to seek merits review of the Commissioner of Taxation’s decision to reject applications for a lower minimum annual distribution rate.
The community’s views are sought on the draft guidelines and Explanatory Statement.