ACNC's proposed definition of PBIs

The ACNC has released a draft Commissioner’s Interpretation Statement: Public Benevolent Institution for public consultation.

The statement provides guidance to ACNC staff, charities and the public on the meaning and scope of the charity subtype of ‘public benevolent institution’ (PBI) for ACNC purposes.  The ACNC determines PBI status for Commonwealth tax purposes which is a threshold for income tax deductibility and fringe benefits tax (FBT) exemptions.

Submissions can be emailed to CIS@acnc.gov.au. The consultation closes  1 June 2016.

For many organisations, PBI status is the “holy grail” of taxation statuses. It opens the door to FBT salary packaging, gift deductions and grants from foundations.  Professor Myles McGregor-Lowndes from QUT Business School, writing for Pro Bono News advises organisations to look carefully at the proposed definition to identify risks and opportunities.  ACNC’s Draft Definition of PBIs – Risk or Opportunity?