Division 30-15 of the Income Tax Assessment Act 1997 allows cultural organisations deductible gift recipient status if they fall into one of the specified categories under Section 30-100 of the Act. After registration on the Register of Cultural Organisations, income tax exemption and deductible gift recipient status is automatically issued by the ATO without further analysis.

The Act specifies the following entities as cultural organisations: a public fund that is on the register of cultural organisations, or a public library or a public museum or a public art gallery or an institution consisting of a public library, public museum and public art gallery or any two of them.

A cultural organisation is defined under Section 30-300 as an organisation which has as its principal purpose the promotion of literature, music, a performing art, a visual art, a craft, design, film, video, television, radio, community arts, arts of Indigenous persons or moveable cultural heritage. To determine the main purpose of an organisation consideration of the organisation's constituent documents, activities and use of funds and history is required.

The Register of Cultural Organisations is established under s30-F of the Act.

Any application for registration of a cultural organisation must be made to the Federal Ministry for the Arts which assesses the application and forwards it to the Minister for the Arts and the Treasurer. An application for registration on the Register of Cultural Organisations must include:

  1. A copy of the Constitution.
  2. Explanation of a track record of promoting cultural events over a period of at least 2 years.
  3. Identification of income and expenditure, particularly any government grants received in the preceding 2 year period.
  4. A budget for the proposed future 12 month period.
  5. A list of patrons and supporters.
  6. A list of programs planned for performance.
  7. Names and profiles of the persons who will hold positions of responsibility on the governing body.
  8. Evidence that the activities of the organisation have been uninterrupted in the preceding 2 year period.
  9. Evidence that the objects and activities will add to the cultural environment and not detract from it or masquerade as culture.

Once all this material is accumulated and the application is made extensive patience is required because the Minister for Arts and Treasurer will take a minimum of 18 months to analyse the application. During the 18 month period an applicant should continue with their activities without becoming discouraged.

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.