Are fundraising expenses deductible?
For organisations that are not exempt from income tax, fundraising expenses will be tax deductible to the extent they are incurred in deriving assessable income.
EXAMPLE:
A German club that is a taxable non-profit organisation holds an Oktoberfest to raise funds. The sales of food, drinks and souvenirs to members of the public will be assessable to the club. Expenses the club incurred in making these sales will be deductible.
However, there are some deductions that do not have to be incurred in deriving assessable income, for example, superannuation contributions for employees
Friday, October 12, 2007
Wednesday, October 3, 2007
Australian Individual 2005/2006 Tax Rate
TAX RATES SYSTEM
In Australia, a taxpayer's income is taxed progressively. Broadly, this means that as you earn more income your average tax rate rises. For Australian residents, the first tax bracket, from $0 to $6,000, has a zero marginal rate of tax. This tax-free amount is called the tax-free threshold.
ResidentsThese rates apply to individuals who:
are residents of Australia for tax purposes for• the whole financial year
did not leave full-time education for the first• time during the financial year.
Tax rates 2005-06
Taxable income Tax on this income
$0 – $6,000 = Nil
$6,001 – $21,600 = 15c for each $1 over $6,000
$21,601 – $63,000 = $2,340 plus 30c for each $1 over $21,600
$63,001 – $95,000 = $14,760 plus 42c for each $1 over $63,000
Over $95,000 = $28,200 plus 47c for each $1 over $95,000
The above rates do not include the Medicare levy of 1.5%.
Tax offsets reduce the tax payableTax offsets based on taxable income levels apply to:
individuals on low incomes below• $27,475
individuals who receive certain Australian government allowances• and payments
senior Australians.Other tax offsets apply to people with• dependants, those living in remote areas and those who receive particular types of income or incur particular expenses
Non-residents
If you are a non-resident for the full year, the following rates apply:
Tax rates 2004-05
Taxable income Tax on this income:
$0 – $21,600 = 29c for each $1
$21,601 – $58,000 = $6,264 plus 30c for each $1 over $21,600
$58,001 – $70,000 = $17,184 plus 42c for each $1 over $58,000
Over $70,000 = $22,224 plus 47c for each $1 over $70,000
Tax rates 2005-06
Taxable income Tax on this income
$0 – $21,600 = 29c for each $1
$21,601 – $63,000 = $6,264 plus 30c for each $1 over $21,600
$63,001 – $95,000 = $18,684 plus 42c for each $1 over $63,000
Over $95,000 =$32,124 plus 47c for each $1 over $95,000
Non-residents are not required to pay the Medicare levy.
In Australia, a taxpayer's income is taxed progressively. Broadly, this means that as you earn more income your average tax rate rises. For Australian residents, the first tax bracket, from $0 to $6,000, has a zero marginal rate of tax. This tax-free amount is called the tax-free threshold.
ResidentsThese rates apply to individuals who:
are residents of Australia for tax purposes for• the whole financial year
did not leave full-time education for the first• time during the financial year.
Tax rates 2005-06
Taxable income Tax on this income
$0 – $6,000 = Nil
$6,001 – $21,600 = 15c for each $1 over $6,000
$21,601 – $63,000 = $2,340 plus 30c for each $1 over $21,600
$63,001 – $95,000 = $14,760 plus 42c for each $1 over $63,000
Over $95,000 = $28,200 plus 47c for each $1 over $95,000
The above rates do not include the Medicare levy of 1.5%.
Tax offsets reduce the tax payableTax offsets based on taxable income levels apply to:
individuals on low incomes below• $27,475
individuals who receive certain Australian government allowances• and payments
senior Australians.Other tax offsets apply to people with• dependants, those living in remote areas and those who receive particular types of income or incur particular expenses
Non-residents
If you are a non-resident for the full year, the following rates apply:
Tax rates 2004-05
Taxable income Tax on this income:
$0 – $21,600 = 29c for each $1
$21,601 – $58,000 = $6,264 plus 30c for each $1 over $21,600
$58,001 – $70,000 = $17,184 plus 42c for each $1 over $58,000
Over $70,000 = $22,224 plus 47c for each $1 over $70,000
Tax rates 2005-06
Taxable income Tax on this income
$0 – $21,600 = 29c for each $1
$21,601 – $63,000 = $6,264 plus 30c for each $1 over $21,600
$63,001 – $95,000 = $18,684 plus 42c for each $1 over $63,000
Over $95,000 =$32,124 plus 47c for each $1 over $95,000
Non-residents are not required to pay the Medicare levy.
Monday, October 1, 2007
Non-Profit Organization
Non-profit organisations operate in many areas of society. They can include:
church schools
churches
community child care centres
cultural societies
environmental protection societies
neighbourhood associations
public museums and libraries
scholarship funds
scientific societies
scouts
sports clubs
surf lifesaving clubs
traditional service clubs
A non-profit organisation is one which is not operating for the profit or gain of its individual members, whether these gains would have been direct or indirect. This applies both while the organisation is operating and when it winds up.
Any profit made by the organisation goes back into the operation of the organisation to carry out its purposes and is not distributed to any of its members.
The Tax Office accepts an organisation as non-profit where its constituent or governing documents prevent it from distributing profits or assets for the benefit of particular people – both while it is operating and when it winds up. These documents should contain acceptable clauses showing the organisation’s non-profit character. The organisation’s actions must be consistent with this requirement.
Acceptable clauses to indicate non-profit character are:
Non-profit clause
‘The assets and income of the organisation shall be applied solely in furtherance of its above-mentioned objects and no portion shall be distributed directly or indirectly to the members of the organisation except as bona fide compensation for services rendered or expenses incurred on behalf of the organisation.’
Dissolution clause
‘In the event of the organisation being dissolved, the amount that remains after such dissolution and the satisfaction of all debts and liabilities shall be transferred to another organisation with similar purposes which is not carried on for the profit or gain of its individual members.’
A non-profit organisation can still make a profit, but this profit must be used to carry out its purposes and must not be distributed to owners, members or other private people.
EXAMPLE
A society makes a $40,000 profit for the year. It uses the profit to reduce its debts and provide for its activities in the following year.
church schools
churches
community child care centres
cultural societies
environmental protection societies
neighbourhood associations
public museums and libraries
scholarship funds
scientific societies
scouts
sports clubs
surf lifesaving clubs
traditional service clubs
A non-profit organisation is one which is not operating for the profit or gain of its individual members, whether these gains would have been direct or indirect. This applies both while the organisation is operating and when it winds up.
Any profit made by the organisation goes back into the operation of the organisation to carry out its purposes and is not distributed to any of its members.
The Tax Office accepts an organisation as non-profit where its constituent or governing documents prevent it from distributing profits or assets for the benefit of particular people – both while it is operating and when it winds up. These documents should contain acceptable clauses showing the organisation’s non-profit character. The organisation’s actions must be consistent with this requirement.
Acceptable clauses to indicate non-profit character are:
Non-profit clause
‘The assets and income of the organisation shall be applied solely in furtherance of its above-mentioned objects and no portion shall be distributed directly or indirectly to the members of the organisation except as bona fide compensation for services rendered or expenses incurred on behalf of the organisation.’
Dissolution clause
‘In the event of the organisation being dissolved, the amount that remains after such dissolution and the satisfaction of all debts and liabilities shall be transferred to another organisation with similar purposes which is not carried on for the profit or gain of its individual members.’
A non-profit organisation can still make a profit, but this profit must be used to carry out its purposes and must not be distributed to owners, members or other private people.
EXAMPLE
A society makes a $40,000 profit for the year. It uses the profit to reduce its debts and provide for its activities in the following year.
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