23Transitional provision—deductible gift recipient requirements

23  Transitional provision—deductible gift recipient requirements

(1) This item applies if:

 (a) just before the commencement of one or more amendments made by this Part or Schedule 4, gifts to an entity were deductible because the entity satisfied a requirement of Division 30 of the Income Tax Assessment Act 1997; and

 (b) at that commencement, the entity no longer satisfies the requirement because of the amendments (disregarding this item).

(2) The amendments do not apply in relation to the entity during the period that:

 (a) starts on the commencement of this item; and

 (b) ends on the earlier of:

 (i) the time the entity first satisfies the requirement mentioned in paragraph (1)(b); and

 (ii) 12 months after the commencement of this item.

Example 1: A public hospital is endorsed as a deductible gift recipient (see item 1.1.1 of the table in subsection 30‑20(1) of the Income Tax Assessment Act 1997). The hospital has 12 months to be registered under the Australian Charities and Not‑for‑profits Commission Act 2012, if it is not an Australian government agency.

Example 2: A public fund is endorsed as a deductible gift recipient because it is maintained for the purpose of providing money for particular public hospitals (see item 1.1.3 of the table in subsection 30‑20(1) of the Income Tax Assessment Act 1997). The public fund has 12 months to either amend its governing rules to limit its purpose to providing money for those hospitals if they meet the special conditions set out in item 1.1.1 of that table, or to ensure that the particular hospitals in fact meet the special conditions.

Example 3: A residential educational institution is endorsed as a deductible gift recipient because it is affiliated under statutory provisions with a public university (see item 2.1.4 of the table in subsection 30‑25(1) of the Income Tax Assessment Act 1997). The institution has 12 months to be registered as a charity by the Commissioner of the Australian Charities and Not‑for‑profits Commission, and to ensure that the public university is also so registered (if the university is not an Australian government agency).