Legislation introduced into Parliament today gives the Treasurer the ability to make binding guidelines for private ancillary funds (formerly named prescribed private funds). Alongside the legislation, the guidelines give effect to the Government’s 2008 Budget commitment to improve the integrity of prescribed private funds.
The Assistant Treasurer, Senator the Hon Nick Sherry, has now released for public consultation a draft version of the new guidelines.
Private ancillary funds 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.
The guidelines will have effect from 1 October 2009.