Division 30-15 Income Tax Assessment Act 1997 lists the
categories of institutions or funds within the area of Education
which could attract DGR status.
Certain categories which would be most relevant to schools are
contained in Item 2.
Item 2.1.10 - School Building funds;
Item 2.1.13 - Scholarships, bursaries or prizes funds; and
Item 12.1.2 - A public library (though this would require the
school allowing use of their library by the general public)
Other potential categories for schools include:
Item 2.1.8 - a fund for providing religious instruction in
government schools in Australia, with a separate Item 2.1.9 for
funds maintained by a Roman Catholic diocese to provide religious
instruction in government schools in Australia
Item 2.1.9A - a fund for providing education in ethics in
government schools in Australia as an alternative to religious
Item 2.1.11 - a fund for a rural school hostel building; and
Item 2.1.12 - a government school which provides special
education to permanently disabled children only, to secure DGR
Tertiary Education Institutions
If the educational institution is a tertiary institution,
potential categories are also contained in Item 2: Item 2.1.1 -a
Item 2.1.2 - a fund for the establishment of the public
Item 2.1.3 - a higher education institution within the meaning
of the Higher Education Support Act 2003
Item 2.1.4 - a residential education institution affiliated
under statutory provisions with a public university;
Item 2.1.6 - a residential education institution that is
affiliated with a higher education institution; and
Item 2.1.7 - an institution that the Education Minister has
determined to be a technical and further education institution
under the Student Assistance Act 1973
Any funds raised must be applied towards building acquisition,
construction or maintenance expenditure. A trust deed with a body
corporate trustee is usually signed to create the fund, and it must
have its own bank account.
The documents to establish a scholarship fund because there are
certain non negotiable provisions they must contain dealing
Eligibility to all Australians to make an application.
Provision that awards are based on merit or need; and
Distribution on a winding up to another scholarship fund.
All references above to a "fund" are references to a
"public fund". This means the fund must raise money from
the public and allow the public a role in administration of the
fund. This would be done by appointing persons to management
committees for the funds who hold positions of responsibility in
the community. The fund document needs to stipulate that it
operates on a non-profit basis and that on its dissolution any
surplus would be paid to another fund with like objects and DGR
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The income tax treatment of any property lease incentive will vary, depending on the nature of the inducement provided.
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