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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Charitable Trusts Amendment Bill 2006
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Amendment of Charitable Trusts Act 1993 No 10 2
4 Repeal of Act 2
Schedule 1 Amendments 3
I certify that this PUBLIC BILL, which originated in the LEGISLATIVE ASSEMBLY,
has finally passed the LEGISLATIVE COUNCIL and the LEGISLATIVE ASSEMBLY of
NEW SOUTH WALES.
Clerk of the Legislative Assembly.
Legislative Assembly,
Sydney, , 2006
New South Wales
Charitable Trusts Amendment Bill 2006
Act No , 2006
An Act to amend the Charitable Trusts Act 1993 to enable charitable trusts to make
gifts to certain entities without affecting their status as a charitable trust; to validate
certain matters; and for other purposes.
I have examined this Bill, and find it to correspond in all respects with the Bill
as finally passed by both Houses.
Chairman of Committees of the Legislative Assembly.
Clause 1 Charitable Trusts Amendment Bill 2006
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the Charitable Trusts Amendment Act 2006.
2 Commencement
This Act commences on the date of assent to this Act.
3 Amendment of Charitable Trusts Act 1993 No 10
The Charitable Trusts Act 1993 is amended as set out in Schedule 1.
4 Repeal of Act
(1) This Act is repealed on the day following the day on which this Act
commences.
(2) The repeal of this Act does not, because of the operation of section 30
of the Interpretation Act 1987, affect any amendment made by this Act.
Page 2
Charitable Trusts Amendment Bill 2006
Amendments Schedule 1
Schedule 1 Amendments
(Section 3)
[1] Part 4A
Insert after Part 4:
Part 4A Gifts by certain trusts for philanthropic
purposes
22A Definitions
In this Part:
commencement day means the date of assent to the Charitable
Trusts Amendment Act 2006.
eligible recipient means a deductible gift recipient within the
meaning of the Income Tax Assessment Act 1997 of the
Commonwealth, whether or not the deductible gift recipient is a
charity at law or (without limitation) is established for a
charitable purpose or purposes.
prescribed trust means a trust:
(a) that establishes and maintains a fund referred to in item 2
of the table in section 30-15 of the Income Tax Assessment
Act 1997 of the Commonwealth, or
(b) that is established for charitable or philanthropic purposes
and is of a class prescribed by the regulations,
whether created before, on or after the commencement day.
trust instrument means the initial instrument establishing a
prescribed trust, as modified by all validly executed amendments.
22B Prescribed trust--trust instrument containing express power to
give to eligible recipients
The trust instrument of a prescribed trust may include an express
power for the trustees to provide money, property or benefits to
or for an eligible recipient or for the establishment of an eligible
recipient.
Page 3
Charitable Trusts Amendment Bill 2006
Schedule 1 Amendments
22C Prescribed trust--trust instrument not containing express power
to give to eligible recipients
(1) The powers of the trustees of a prescribed trust, whose trust
instrument does not contain an express power to do so, include a
power to provide money, property or benefits to or for an eligible
recipient or for the establishment of an eligible recipient.
(2) Subsection (1):
(a) applies despite any provision to the contrary in the trust
instrument, but
(b) does not apply in relation to a particular eligible recipient
or a particular class of eligible recipients to the extent that
there is an express prohibition in the trust instrument
against the provision by the trustees of money, property or
benefits:
(i) to or for that eligible recipient or class of eligible
recipients, or
(ii) for the establishment of that eligible recipient or
class of eligible recipients.
(3) Subsection (1) does not apply to the trustees of a prescribed trust
unless there is in force a declaration substantially to the effect of
the form in Schedule 1 in respect of the prescribed trust.
(4) For the purpose of making a declaration under this section, the
form in Schedule 1 may be modified so as to limit the application
of the declaration to a specified eligible recipient or specified
class of eligible recipients. If the declaration made in respect of a
prescribed trust is so limited, subsection (1) in its application to
the prescribed trust has effect only in relation to the specified
eligible recipient or specified class of eligible recipients.
(5) The trustees must ensure that the declaration, or a certified copy
of it, is retained with the records of the prescribed trust.
(6) The trustees are not under a duty to make a declaration under this
section, nor are the trustees in breach of a duty in making a
declaration under this section.
22D Ancillary provisions
(1) In this section:
prescribed power, in relation to a prescribed trust, means:
(a) a power referred to in section 22B included in the trust
instrument, or
Page 4
Charitable Trusts Amendment Bill 2006
Amendments Schedule 1
(b) the power referred to in section 22C as applying to the
prescribed trust.
(2) This Act applies to a prescribed trust as if the prescribed power
were a power exercisable for a charitable purpose.
(3) Without limiting subsection (2):
(a) neither the existence nor the exercise of the prescribed
power affects the validity or status of a charitable trust as
a charitable trust, and
(b) a prescribed trust is to be construed and given effect to in
the same manner in all respects as if:
(i) the prescribed power were a power exercisable for a
charitable purpose, and
(ii) any payment or application of the trust property or
the trust income, or any part of either of them, in the
manner allowed by the power were to or for a
charitable purpose, and
(c) the existence or exercise of the prescribed power does not
affect the control of a prescribed trust by the Court in the
exercise of the Court's general jurisdiction with respect to
charitable trusts, and
(d) the jurisdiction referred to in paragraph (c) extends to the
prescribed power as if the power were exercisable for a
charitable purpose.
(4) The provision, before the commencement day, by the trustees of
a prescribed trust of money, property or benefits to or for an
eligible recipient or for the establishment of an eligible recipient:
(a) is taken to be, and always to have been, a provision for an
authorised and valid purpose of the prescribed trust, and
(b) does not affect, and is taken never to have affected, the
status of the prescribed trust as a charitable trust.
This subsection applies despite anything to the contrary in the
trust instrument.
(5) The inclusion of a power referred to in section 22B in the trust
instrument of a prescribed trust before the commencement day is
taken to be, and always to have been, validly included.
Page 5
Charitable Trusts Amendment Bill 2006
Schedule 1 Amendments
[2] Schedule 1
Insert at the end of the Act:
Schedule 1 Declaration by trustees
(Section 22C)
The trustees of the [insert name of trust], after having regard to
the effect of this declaration (including its effect on the liability
of the trustees to income tax), declare that the power conferred by
section 22C of the Charitable Trusts Act 1993 to provide money,
property or benefits to or for an eligible recipient, or for the
establishment of an eligible recipient, within the meaning of
section 22A of that Act, is approved as a power that the trustees
for the time being of the [insert name of trust] are authorised to
exercise.
Deed dated
Page 6
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