Consultation on the Definition of a Charity

Background

On 22 July 2003, the then Treasurer announced the release of exposure draft legislation on the definition of a charity, and asked the Board of Taxation to undertake public consultations on the workability of the legislative definition of a charity proposed in the draft legislation. The Chairman of the Board of Taxation issued a press release welcoming the terms of reference and announcing that the Board would consult with interested charitable organisations on the exposure draft legislation.

Terms of Reference

The Terms of Reference for the review as announced in by the then Treasurer were as follows:

Consultation by the Board of Taxation on the definition of a charity

  1. The Government has announced that it will codify the existing common law meaning of a charity and expand it to encompass certain child care organisations, self-help bodies and, closed or contemplative religious orders.

    Pursuant to this decision, the Board is to consult on the workability of the legislative definition of a charity proposed in the exposure draft Charities Bill 2003.

  2. In addition, the Board should specifically consult on whether the public benefit test in the Charities Bill 2003 should require the dominant purpose of a charitable entity to be altruistic, as recommended by the Report of the Inquiry into the Definition of Charities and Related Organisations.
  3. The Board should consult primarily with organisations intended to fall within the new definition of a charity.
  4. The Board should consider views put forward and provide its recommendations in a report to the Government by 1 December 2003.

Submissions

The Board received a total of 267 written submissions as well as input via meetings with key charitable bodies and representative groups, and group discussions in all State and Territory capitals. The Board wishes to thank all respondents for their interest and input. Publicly available submissions are available below for review.

Board Report

The Board’s report, Consultation on the Definition of a Charity: A Report to the Treasurer, was provided to the then Treasurer on 19 December 2003 and released publicly on 11 May 2004 when the then Treasurer announced the Government’s response.

Government Response

In response to the Boards final report the Government stated that “the Government has taken advice from the Board of Taxation that the draft legislation does not achieve the level of clarity and certainty that was intended to be brought to the charitable sector.” The Government announced the common law meaning would continue to apply with specific extensions to be enacted.

The Charities Bill 2003 did not proceed. The Extension of Charitable Purpose Act 2004 enacted the Government’s response by maintaining the common law definition of charity with specific extensions. Royal assent received 30 June 2004.

For further information about this report please contact the Board of Taxation Secretariat on (02) 6263 4366 or at taxboard@treasury.gov.au.

Submissions received

Submitter Download ACROD Limited 60KB Action on Disability within Ethnic Communities Incorporated 183KB Aged & Community Services Association of New South Wales & the Australian Capital Territory 71KB Aged & Community Services Australia 57KB Alcohol and other Drugs Council of Australia 124KB Alzheimer's Australia 27KB Anglican Church Diocese of Sydney 132KB Anglicare Australia 54KB Animal Welfare League of South Australia 70KB Animals Australia 27KB Arnold Bloch Leibler 558KB Artists Foundation of Western Australia 64KB Arts Law Centre of Australia 34KB Association of Independent Schools of Queensland Incorporated 41KB Association of Independent Schools of Western Australia Incorporated 42KB Association of Neighbourhood Houses and Learning Centres Incorporated 44KB Association of Western Australian Art Galleries 42KB Asylum Seekers Centre Incorporated 54KB Australasian Fire Authorities Council Incorporated 67KB Australia Council 315KB Australian Agency for International Development (AusAID) 117KB Australian Association of Christian Schools 58KB Australian Breastfeeding Association 48KB Australian Caption Centre 57KB Australian Council for Overseas Aid (ACFOA) 170KB Australian Council of National Trusts 38KB Australian Council of Social Service (ACOSS) 361KB Australian Democrats 49KB Australian Divisions of General Practice Limited 350KB Australian Federation of AIDS Organisations 46KB Australian Federation of Homelessness Organisations 132KB Australian Flying Corps and Royal Australian Air Force Association 139KB Australian Injecting & Illicit Drug Users League Incorporated 131KB Australian Institute of Aboriginal and Torres Strait Islander Studies 65KB Australian Legal Aid Commissions 61KB Australian Major Performing Arts Group 24KB Australian Network of Environmental Defender's Offices 148KB Australian Paralympic Committee 122KB Australian Pensioners' and Superannuants' League Queensland 86KB Australian Red Cross 84KB Australian Relief & Mercy Services Limited 25KB Australian Reproductive Health Alliance 84KB Australian Vice Chancellors' Committee 29KB Australians for Native Title and Reconciliation 41KB Aviation Historical Society of Australia Incorporated 139KB B'Nai B'Rith Australia/New Zealand 31KB Bailey, Zelda 121KB Baptist Community Services 140KB Baptist World Aid Australia 27KB Baptistcare 25KB Benevolent Society 51KB Berry Street Victoria 54KB Blind Citizens Australia 28KB Blue Mountains Community Interagency 15KB Boffa, G 19KB Breast Cancer Action Group (New South Wales / Victoria) 65KB Brotherhood of St Laurence 67KB Brownsey, David 54KB Bryan, Michael 151KB Bunney, Bob 19KB CAF Australia 36KB Cancer Council Australia 51KB Cancer Council New South Wales 56KB Cancer Council South Australia 38KB Cancer Council Victoria 72KB Cancer Voices New South Wales 238KB Carers Australia 54KB Caroline Chisholm Centre for Health Ethics Incorporated 26KB Catholic Church in Australia 172KB Caxton Legal Centre Incorporated 305KB Central and Northern Land Councils 256KB Central Highlands Community Legal Centre Incorporated 64KB Cerebral Palsy League of Queensland 31KB Chesterman, Michael 25KB Child & Family Welfare Association of Australia Incorporated 47KB Chinese Australian Services Society Co-operative Limited 16KB Christian Children's Fund 39KB Christian World Service 94KB Church and Charitable Private Hospitals Association Limited 69KB Church of Jesus Christ of Latter-Day Saints 34KB City of Bunbury 92KB City of Mandurah Sub-Branch Returned and Services League 21KB City of Melville 19KB City of Salisbury 91KB Co-operative Federation of Victoria Limited 123KB Combined Pensioners and Superannuants Association of New South Wales 60KB Community Child Care 30KB Community Cultural Development New South Wales 69KB Community Housing Federation of Australia 53KB Community Information Strategies Australia Incorporated 28KB Community Services Committee of the New South Wales Young Lawyers 41KB Congregation of the Temple Emanuel 36KB Council of Social Service of New South Wales (NCOSS) 100KB Country Fire Authority 62KB Court, John 11KB Cutler Hughes Harris 62KB Darwin Young Women's Christian Association 21KB Davidson, Alexander (Sandy) 26KB DeafBlind Association of South Australia 19KB Deafness Association of the Northern Territory Incorporated 103KB Deafness Forum of Australia 71KB Deloraine Country Housing Co-operative Society Limited 25KB Department for Community Development, Western Australia 18KB Department of Agriculture, Fisheries and Forestry 22KB Department of Communications, Information Technology and the Arts 63KB Department of Environment and Heritage 86KB Disability Justice Advocacy 17KB Edmund OutReach Services Association 92KB Emil Ford & Co 67KB Environment Business Australia 111KB Environment Centre Northern Territory 48KB Epworth Hospital 114KB Ernst & Young 61KB Family Based Care 22KB Family Life Association of South Australia Incorporated 126KB Far North Queensland Information Alliance 12KB Federation of Community Legal Centres (Victoria) Incorporated 153KB Federation of Parents and Citizens'Associations of New South Wales 60KB Fire and Emergency Services Authority of Western Australia 38KB Fitzroy Legal Service 117KB FPA Health 56KB Freehills 177KB Fundraising Institute — Australia Limited 43KB Girls' Brigade Australia Incorporated 61KB Good Shepherd Youth and Family Service 113KB Group Training Australia 29KB Guide Dogs New South Wales/Australian Capital Territory 20KB Hall & Wilcox 18KB Heritage Council of New South Wales 27KB History Council of New South Wales 79KB Holmes, Peter 15KB Human Rights Council of Australia 130KB Human Rights Western Australia Incorporated 192KB Humanist Society of South Australia Incorporated 11KB Humanist Society of Victoria Incorporated 26KB Illawarra Legal Centre Incorporated 47KB Immigrant Women's Speakout Association of New South Wales 28KB Independent Schools Council of Australia 202KB Inner City Legal Centre 14KB Institute of Chartered Accountants in Australia 35KB Institute of Public Affairs 49KB International Fund for Animal Welfare 78KB Job Futures 116KB Katoomba Neighbourhood Centre Incorporated 54KB Kindergarten Parents Victoria 67KB le Marchant, Antoinette 12KB Lee, W.A. (Tony) 18KB Legacy Co-ordinating Council Incorporated 18KB Lifeline Australia Incorporated 44KB Makinson & d'Apice 94KB Melbourne Citymission 41KB Melbourne Community Foundation 26KB Mental Health Association New South Wales Incorporated 47KB Mental Illness Fellowship of Australia Incorporated 107KB Missions Interlink 11KB Moreland City Council 141KB Morgan, John 217KB Motor Neurone Disease Association of Victoria Incorporated 39KB Multicultural Disability Advocacy Association of New South Wales 31KB Multiple Sclerosis Australia 57KB National Aboriginal and Torres Strait Islander Ecumenical Commission 145KB National Anglican Resources Unit 42KB National Association for Prevention of Child Abuse and Neglect Incorporated, New South Wales 101KB National Association of Community Legal Centres 153KB National Council of the YMCAs of Australia 189KB National Ethnic Disability Alliance 119KB National Heart Foundation of Australia 46KB Nature Conservation Society of South Australia 56KB Neighbourhood Houses 44KB New South Wales Combined Community Legal Centres Group 75KB New South Wales Council of Churches 26KB New South Wales Jewish Board of Deputies 56KB New South Wales Treasury 69KB New South Wales Volunteer Rescue Association Incorporated 31KB Nimbin Neighbourhood & Information Centre Incorporated 27KB Northern Territory Council of Social Service (NTCOSS) 32KB O'Connell, Ann (member of Advisory Panel to Board of Taxation) 150KB Orr, J. Geoff 55KB Oxfam Community Aid Abroad 66KB Patterson, K.J. 30KB Peakcare Queensland 95KB Peninsula Community Legal Centre Incorporated 177KB People with Disabilities (Western Australia) Incorporated 40KB People with Disability Australia Incorporated 27KB Philanthropy Australia 37KB Playgroup Association of Queensland 37KB Presbyterian Church of Australia 17KB Price, David H 119KB Purple Economy Watch Incorporated 59KB Quaker Service Australia 37KB Queensland Cancer Fund 33KB Queensland Community Housing Coalition Limited 43KB Queensland Council of Parents and Citizens Associations 59KB Queensland Council of Social Service (QCOSS) 77KB Queensland Institute of Medical Research 67KB Queensland Meals on Wheels Services Association Incorporated 258KB Refugee Council of Australia 45KB Registrar of Aboriginal Corporations 35KB Reichstein Foundation 104KB Returned & Services League of Australia Limited 377KB Royal Blind Society 12KB Royal Life Saving Society Australia 165KB RSPCA Australia 23KB Russell, Ruth 24KB Salvation Army 83KB Save the Children 26KB Save-a-Dog Scheme 41KB Scouts Australia Western Australian Branch 51KB Seventh-Day Adventist Church 147KB Sherman Group Limited 154KB Shire of Derby/West Kimberley 78KB Smith Family 48KB Social Developers' Network and Nurturing Evolutionary Development Foundation 67KB Society of Australian Genealogists 39KB South Australian Association of School Parents' Clubs Incorporated 61KB South West Aboriginal Land and Sea Council 46KB Southern Communities Advocacy, Legal Education Service Incorporated 39KB SPARK Resource Centre Incorporated 19KB St Vincent de Paul Society National Council 43KB State Heritage Authority 70KB Surf Life Saving Australia Limited 168KB Tandara Lodge Community Care Incorporated 76KB Tasmanian Council of Social Service Incorporated (TasCOSS) 175KB Tasmanian Government 83KB Taxation Institute of Australia 56KB Timber Communities Australia 26KB Turning Point Alcohol and Drug Centre 14KB UNICEF Australia 81KB Union Aid Abroad — APHEDA 34KB Uniting Healthcare 62KB UnitingCare Australia 248KB University of Melbourne Postgraduate Association 20KB Victorian Council of Social Service (VCOSS) 130KB Victorian Healthcare Association 20KB Victorian Urban Fire Brigades' Association Incorporated 37KB Victorian Women's Refuges & Assoc. Domestic Violence Services Incorporated 166KB Victorian Women's Trust 23KB Victory Community Services 88KB Volunteering Australia 82KB Volunteering South Australia 58KB Volunteering Tasmania Incorporated 300KB Welfare Rights Centre Incorporated 35KB WESTCARE Incorporated 61KB Western Australian Council of Social Service (WACOSS) 28KB Western Australian Local Government Association 125KB Western Institute of Self Help (WISH) Incorporated 29KB Western Suburbs Legal Service Incorporated 45KB Willcox, B.A. (Bill) 71KB Women with Disabilities Australia 80KB Women's Health New South Wales 114KB Women's Health Victoria 47KB World Vision of Australia 34KB Young Women's Christian Association (YWCA) of Australia 130KB Young Women's Christian Association of Sydney 22KB Youth Advocacy Centre Incorporated 19KB