Common law meaning of Charity in Australia

The meaning of Charity in Australia has consistently been affirmed by our courts as deriving from the Statute of Elizabeth[i] and the decision of the Privy Council in Commissioners for Special Purposes of the Income Tax v Pemsel [ii]. The majority of the High Court affirmed this in 2008 in Commissioner of Taxation of the Commonwealth of Australia v Word Investments Ltd.[iii]

Pemsel’s case and Word Investments are authority for the summary proposition that -

A public not for profit body will be charitable in Australia if its main purpose and activities are for:

• the relief of poverty;
• the advancement of education;
• the advancement of religion; or
• other purposes beneficial to the community.

[i]43 Eliz I c 4 (Charitable Uses Act 1601).

[ii] [1891] UKHL 1; [1891] AC 531 at 581-582

[iii] [2008] HCA 55 at para. 78