Charities Definition Inquiry - Government Response - 30 August 2002

Federal Treasurer, Peter Costello has today released the Commonwealth Government's response to the Report of the Inquiry into the Definition of Charity, which was established as a result of the tax reform debate and package.

"Today I am releasing the Government's response to the Report of the Inquiry into the Definition of Charities and Related Organisations.

As I noted when I released this Report in August 2001, the Inquiry has made a significant contribution in simplifying such a complex legal and administrative issue.

The Government has decided to enact a legislative definition of charity for the purpose of the administration of Commonwealth laws and to adopt a majority of the Inquiry's recommendations for the definition. While the Commonwealth's predominant requirement for a definition of a charity is for the purposes of deciding which organisations are eligible for tax relief, the definition will apply for all Commonwealth legislation. I will be writing to each of the State and Territory Treasurers to gauge their interest in achieving harmonisation of laws defining charity.

The legislative definition of a charity will closely follow the definition that has been determined by over four centuries of common law, but will provide greater clarity and transparency for charities. The details of the definition are attached. It will explicitly allow not-for-profit child care available to the public, self-help bodies that have open and non-discriminatory membership and closed or contemplative religious orders that offer prayerful intervention for the public, to be charities. It will provide certainty to those organisations operating in the sector while still providing the flexibility required to ensure the definition can adapt to the changing needs of society.

I will ask the Board of Taxation to consult widely with the charitable sector on an exposure draft of the legislation. The legislation is expected to begin on 1 July 2004." Hon. Peter Costello, Commonwealth Treasurer.

Charities Definition Inquiry - Government Response - 30 August 2002

(cl)

For further information

Contact	:	Treasurer's Office
Address	:	Room MG47, Parliament House, Canberra ACT 2600
Phone	:	(02) 6277 7340
Fax	:	(02) 6273 3420
Email	:	ministerial@treasury.gov.au.

WWW

:

http://www.treasurer.gov.au