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ARTICLE · 02 DECEMBER 2010

Charitable purposes: politically correct?

Gadens Lawyers
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A case handed down by the High Court of Australia yesterday held that an organisation whose objects are to promote greater efficiency and effectiveness of foreign aid directed to the relief of poverty, by campaigning and generating public debate, may be considered a charitable institution for the purpose of tax concessions.

AustraliaCorporate/Commercial Law

By Jon Cheung and Lucy Gray

"...in Australia there is no general doctrine which excludes from charitable purposes 'political objects'..."[1]

A case handed down by the High Court of Australia yesterday held that an organisation whose objects are to promote greater efficiency and effectiveness of foreign aid directed to the relief of poverty, by campaigning and generating public debate, may be considered a charitable institution for the purpose of tax concessions. 

The High Court's decision in Aid/Watch Incorporated v Commissioner of Taxation [2010] HCA 42 (1 December 2010) can be accessed here.

Effect

The effect of the decision beyond promoting public debate is that some organisations which do not fall within the charitable purposes set out in the Australian Taxation Office (ATO) Not for Profit Guidelines (NFP Guidelines) may be considered charitable if they are able to show some degree of contribution to the public welfare. 

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