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New tax ruling on school or
college building funds


Issued: 25 February 2013




On 13 February, the Australian Taxation Office ("ATO") has issued final Taxation Ruling TR 2013/2 "Income Tax: School or College Building Funds". This ruling outlines the ATO's new interpretation of what is an eligible school building fund. This final tax ruling has abandoned both the solely test and the 50% test. The final ruling looks at various concepts relevant to the definition of a school building fund, but primarily concentrates on whether there is a school and whether the building is being used as a school.

As a result of the final ruling, most school building funds operated by public and private schools will be able continue. However many school building funds operated by churches may no longer have eligible projects or areas of expenditure.


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Disclaimer: This publication has been prepared on the basis of information available at the date of preparation. The information is general in nature and is not to be taken as substitute for specific professional advice. We recommend that our advice be sought on specific issues prior to acting on transactions affected.