10CSchool does not operate for profit because of joint use arrangements

10C School does not operate for profit because of joint use arrangements

10C School does not operate for profit because of joint use arrangements

(1) For the Act, section 83C(3), a non-government school does not operate for profit because of—

(a) a payment made by the school under a joint use arrangement, or

(b) the use of the following in accordance with a joint use arrangement—

(i) the assets of the school’s proprietor, as far as the assets relate to the school,

(ii) the income of the school’s proprietor, as far as the income arises from the operation of the school.

(2) This clause does not apply if—

(a) the payment is made by the school to a related entity or other person or body for property, goods or services—

(i) at more than reasonable market value, or

(ii) not required for the operation of the school, or

(iii) in circumstances the Minister considers to be unreasonable, having regard to the fact that financial assistance is provided by the Minister to or for the benefit of the school, or

(b) the benefit to the school under the joint use arrangement is not reasonably proportionate to the costs incurred by the school or the proprietor of the school under the arrangement.

(3) Income received by the proprietor arising from the joint use arrangement must be used for the operation of the school.

(4) In this clause—

joint use arrangement means an arrangement between a school or the proprietor of a school and another person under which the other person contributes to the acquisition, development, upgrading or maintenance of the school’s facilities with the intention that—

(a) the facilities are or will be—

(i) owned by the school or the proprietor of the school, or

(ii) jointly owned by the school or the proprietor of the school and the other person, and

(b) the other person will be entitled to use the facilities in a way that does not adversely affect the school.

Ins 2025 (664), Sch 1[5].