Taxation ruling TR2019/6 Income tax: the 'in Australia' requirement concerning certain deductible-gift recipients and income-tax-exempt entities has been issued.

It sets out the ATO commissioner's view on what the phrase 'in Australia' means in divisions 30 and 50 of the Income Tax Assessment Act 1997 .

The divisions set out rules for working out whether certain funds, authorities, and institutions are eligible to be deductible-gift recipients and whether the income of certain NFPs is tax exempt.

The DGR 'in Australia' condition refers to the special condition that NFPs must be in Australia to be entitled to DGR endorsement. The ruling provides examples of when an entity is established or legally recognised in Australia and makes operational or strategic decisions mainly in Australia.

The 'in Australia' condition for exempt entities refers to special conditions that certain NFPs need to meet to be tax-exempt. The ruling provides examples of how an entity meets the physical-presence requirement and demonstrates that it incurs expenditure and pursues objectives principally in Australia.
The finalised ruling is consistent with guidance published in draft taxation ruling TR 2018/D1d d in July 2018.