10DSchool does not operate for profit because of payments for future use of facilities

10D School does not operate for profit because of payments for future use of facilities

10D School does not operate for profit because of payments for future use of facilities

(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 future use arrangement, or

(b) the use of the following in accordance with a future 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 future use arrangement is not reasonably proportionate to the costs incurred by the school or the proprietor of the school under the arrangement.

(3) In this clause—

future use arrangement means an arrangement between a school or the proprietor of a school and another person—

(a) under which facilities are developed, acquired, upgraded or maintained, and

(b) with the intention that—

(i) the facilities are or will be owned by the other person, and

(ii) the school will be entitled to use the facilities.

cl 10D: Ins 2025 (664), Sch 1[5].