In a recent development for the not-for-profit sector and
charitable bodies, the Western Australian Chamber of Commerce and
Industry ("CCI") successfully argued that it was a
charity and therefore exempt from payroll tax. Importantly, the
Tribunal also held that CCI was entitled to refund of payroll taxes
paid going back up to 5 years.
The case was heard in the Western Australian Administrative
Tribunal and given that payroll tax legislation in Australian
states and territories are largely harmonised, could have
precedential value in other Australian jurisdictions.
This case centred on whether the CCI had as its main purpose
"other purposes beneficial to the community" which is a
test of charitable status. The meaning of a charity stems from very
old case law and was not in contention.
