Bartier Perry, in conjunction with Perpetual Trustee Company Limited, recently acted on the establishment of a major Prescribed Private Fund (PPF) for clients. The PPF has been approved for prescription in the Income Tax Assessment Regulations 1997.
Partner Gerard Basha said the firm prepared the legal documentation and advised on the setting up of the fund. “Setting up the PPF itself wasn’t that complex, but the client was quite sophisticated and raised some very complex issues that required advice in terms of what the asset could and couldn’t do,” Basha said.
He said the fund could have a significant impact on philanthropy in Australia — if the funding of the PPF proceeds as planned it is expected to have a capital base of $305 million, making it the largest PPF established to date. The business proposal is dependent on a business sale.
“Income from that is going to be distributed each year and some capital will be distributed throughout the life of the fund as well,” Basha said. The fund would be used to benefit organisations and charities selected by the client’s family, he added.
“The fact that the client spoke to us about what they proposed to do with the foundation and how they proposed to benefit the Australian company with those funds, I found that interesting,” he said.