Charities Bill 2013 Introduced into Federal Parliament: A New Definition of Charity

The Charities Bill 2013 and its accompanying consequential amendment bill were both introduced into the Federal House of Representatives on 29 May 2013.

Aims of the Bills

The bill creates a definition of charity and charitable purposes that has been generally based on existing common law principles with minor modifications to modernise and clarify the common law.

To be a charity, an entity must be not-for-profit and have only charitable purposes (other than incidental or ancillary purposes that further or aid the charitable purpose) that are for the public benefit.

The categories of charitable purposes described in the Bill broadly follow the categories described in the Charities Inquiry report in grouping purposes found by the courts to be charitable.

In addition, the Bill incorporates purposes specified in the Extension of Charitable Purpose Act 2004, makes further minor extensions to charitable purposes, and modernises the language and categories.

Effect of the Bills

Assistant Treasurer David Bradbury said today the meaning of charity and charitable purpose has largely been administered on the basis of principles derived from the common law, going all the way back to the Statute of Elizabeth of 1601.

“A statutory definition of charity is a sensible and evidence based reform, which has been recommended by numerous reviews such as the 2001 Inquiry into the Definition of Charities and Related Organisations, and the 2010 Productivity Commission report, Contribution of the Not-for-Profit Sector,” he said.

Bradbury said the proposed statutory definition would help support charities by providing a succinct and clear definition of charity which is easier for charities and the community to understand.

Information about the bill sourced from TimeBase LawOne and Pro Bono News Report.

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