NO.066

DRAFT LEGISLATION ON THE DEFINITION OF CHARITIES

Claims that the tax status of charities has been threatened by draft legislation

on the definition of a charity are false.

Charities have never been penalised for speaking out on public policy. To

suggest that the Government has proposed this is false.

The Charities Bill 2003 Exposure Draft, which is in the public domain for

the purpose of consultation and discussion, does not attempt to restrict criticism

of public policy by recognised charities. There is no change from existing practice.

The draft legislation replicates the present law. The Exposure Draft definition

follows the existing common law definition which requires that to be a charity,

an organisation must have a dominant purpose that is charitable.

The Government announced this policy in August 2002, eleven months ago. Draft

legislation was released last week. This draft provides, as is the current situation,

that a charity must be not for profit, have a dominant purpose or purposes that

are charitable and be for the public benefit.

While this definition follows the definition that has been determined by more

than 400 years of common law precedent, the draft legislation would widen the

definition of charity to include 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.

Mr E.W Exell, Business Manager, Catholic Archdiocese of Melbourne and Chair

of the Australian Catholic Church Tax Working Group, is involved in consultation

on this legislation. The Government understands that Mr Exell represents all

Catholic Church Agencies, including Catholic Health in the consultation process.

30 July 2003

MELBOURNE

Contact: David Alexander

Ph: 02 6277 7340