The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP, has released for public consultation an exposure draft of legislation that gives effect to the Government’s 2008 Budget commitment to improve the integrity of prescribed private funds (PPFs).
PPFs are a form of ancillary trust fund designed to encourage private philanthropy by providing private groups, such as businesses, families and individuals, with greater flexibility to start their own trust funds for philanthropic purposes. Donors receive a tax deduction for donations to their PPF, and most PPFs are also income tax exempt.
The changes are planned to have effect from 1 October 2009.
An exposure draft of the new guidelines is likely to be made available for public consultation later this month.