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ARTICLE · 04 SEPTEMBER 2014

ACNC: Applying the Hunger Project Australia decision

Cooper Grace Ward
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With the ACNC's interpretation of the decision, endorsement as a PBI in Australia may be available to more charities.

AustraliaCorporate/Commercial Law

Following the Federal Court's decision confirming that the Hunger Project Australia (HPA) is a public benevolent institution (PBI), the Australian Charities and Not-for-profits Commission (ACNC) has released a Commissioner's Interpretation Statement to provide guidance on the law as it now stands.

In July 2014, we reported that the Full Court of the Federal Court had dismissed an appeal by the Commissioner of Taxation, classifying HPA as a PBI. This decision eliminated the 'directness' requirement for PBIs where there is a significant link to another PBI that does directly contribute to providing benevolent relief.

As the decision represented a significant development in the law and is now legally binding, the Commissioner has sought to provide guidance to ACNC staff, charities and the public by issuing the Statement, which is a reflection of how it will assess applications for PBIs with similar factual scenarios.

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