Charities
36 Charities
Divisions 1 and 2 do not:
affect a provision (whether made before or after the commencement of this Part) of the governing rules (within the meaning of the Australian Charities and Not‑for‑profits Commission Act 2012) of a registered charity, if the provision:
confers benefits for charitable purposes; or
enables such benefits to be conferred;
wholly or in part on persons of a class identified by reference to any one or more of the grounds of discrimination referred to in this Act; or
make unlawful any act done to give effect to such a provision.
Social Security Act 1991
40 Subsection 23(1) (paragraph (b) of the definition of registered public benevolent institution)
Omit “item 6”, substitute “item 14”.
41 Subsection 23(1) (paragraph (b) of the definition of registered religious institution)
Omit “item 3”, substitute “item 4”.
42 Subparagraph 1157J(1)(a)(iii)
Omit “item 3”, substitute “item 4”.
Part 2—Extension of Charitable Purpose Act 2004
43 The whole of the Act
Repeal the Act.
Part 3—Charities Act 2013
44 Subsection 3(1)
Insert:
not‑for‑profit entity has the meaning given by the Income Tax Assessment Act 1997.
Part 4—Tax Laws Amendment (Special Conditions for Not‑for‑profit Concessions) Act 2013
45 Items 33 and 40 of Schedule 1
Repeal the items.
46 Schedule 1 (heading relating to the Extension of Charitable Purpose Act 2004)
Repeal the heading.
47 Item 67 of Schedule 1
Repeal the item.
Schedule 2—Transitional provisions
Part 1—Dictionary
1 Dictionary
In this Schedule:
ACNC Act means the Australian Charities and Not‑for‑profits Commission Act 2012.
approved form has the meaning given by the ACNC Act.
commencement day means the day on which this Schedule commences.
endorsed as a contributing fund means endorsed under Subdivision 50‑B of the Income Tax Assessment Act 1997 as exempt from income tax because of being covered by item 4.1 of the table in section 50‑20 of that Act (Funds contributing to other funds).
Part 2—Registration
Division 1—Registered entities
2 Registration—old subtypes equivalent to new subtypes
Registration
The Commissioner of the ACNC is treated as having registered an entity under Division 30 of the ACNC Act on the commencement day as the subtype of entity mentioned in column 2 of an item of the table in subitem (3) if, on the day before the commencement day, the entity is registered as the subtype of entity mentioned in column 1 of that item.
Applications for registration
An application for registration under Division 30 of the ACNC Act as the subtype of entity mentioned in column 1 of an item of the table in subitem (3) is treated, from the commencement day, as being an application for registration as the subtype of entity mentioned in column 2 of that item, if:
the application was made before the commencement day; and
on the day before the commencement day, the Commissioner of the ACNC had neither registered the applicant nor refused the application.
Table
The table is as follows:
Corresponding subtypes | ||
|---|---|---|
Item | Column 1 Subtype of entity mentioned in column 2 of the following item of the table in subsection 25‑5(5) of the ACNC Act, as in force on the day before the commencement day: | Column 2 Subtype of entity mentioned in column 2 of the following item of the table in subsection 25‑5(5) of the ACNC Act, as amended by this Act: |
1 | item 2 (education) | item 2 (education) |
2 | item 3 (religion) | item 4 (religion) |
3 | item 5 (prevention or the control of diseases in human beings) | item 13 (prevention or the control of diseases in human beings) |
4 | item 6 (public benevolent institution) | item 14 (public benevolent institution) |
5 | item 7 (child care services) | item 3 (social or public welfare) |
3 Registration—old subtypes possibly equivalent to new subtypes
Registration
The Commissioner of the ACNC is treated as having registered an entity under Division 30 of the ACNC Act on the commencement day as the subtype of entity mentioned in column 2 of an item of the table in subitem (3) if:
on the day before the commencement day, the entity is registered as the subtype of entity mentioned in column 1 of that item; and
the entity notifies the Commissioner that, on the commencement day, the entity meets the description of the subtype of entity mentioned in column 2 of that item.
Applications for registration
An application for registration under Division 30 of the ACNC Act as the subtype of entity mentioned in column 1 of an item of the table in subitem (3) is treated, from the commencement day, as being an application for registration as the subtype of entity mentioned in column 2 of that item, if:
the application was made before the commencement day; and
on the day before the commencement day, the Commissioner of the ACNC had neither registered the applicant nor refused the application; and
the applicant requests the Commissioner to treat the application as being an application for registration as the subtype of entity mentioned in column 2 of that item.
Table
The table is as follows:
Corresponding subtypes | ||
|---|---|---|
Item | Column 1 Subtype of entity mentioned in column 2 of the following item of the table in subsection 25‑5(5) of the ACNC Act, as in force on the day before the commencement day: | Column 2 Subtype of entity mentioned in column 2 of the following item of the table in subsection 25‑5(5) of the ACNC Act, as amended by this Act: |
1 | item 1 (relief of poverty, sickness or the needs of the aged) | item 1 (health) |
2 | item 1 (relief of poverty, sickness or the needs of the aged) | item 3 (social or public welfare) |
3 | item 4 (another purpose that is beneficial to the community) | item 1 (health) |
4 | item 4 (another purpose that is beneficial to the community) | item 3 (social or public welfare) |
5 | item 4 (another purpose that is beneficial to the community) | item 5 (culture) |
6 | item 4 (another purpose that is beneficial to the community) | item 6 (reconciliation, mutual respect and tolerance between groups of individuals that are in Australia) |
7 | item 4 (another purpose that is beneficial to the community) | item 7 (human rights) |
8 | item 4 (another purpose that is beneficial to the community) | item 8 (advancing the security or safety of Australia or the Australian public) |
9 | item 4 (another purpose that is beneficial to the community) | item 9 (preventing or relieving the suffering of animals) |
10 | item 4 (another purpose that is beneficial to the community) | item 10 (natural environment) |
11 | item 4 (another purpose that is beneficial to the community) | item 11 (purposes beneficial to the general public and analogous to the other charitable purposes) |
12 | item 4 (another purpose that is beneficial to the community) | item 12 (advancing public debate) |
Notices and requests
A notice given under paragraph (1)(b), or a request made under paragraph (2)(c), must be:
in the approved form; and
given to the Commissioner during the period of 18 months starting on the commencement day.
Subdivision 175‑B of the ACNC Act imposes an administrative penalty if the notice or request contains a statement that is false or misleading in a material particular.
Division 2—Funds contributing to other funds
4 Funds contributing to other funds
This item applies to a fund that, on the day before the commencement day, is endorsed as a contributing fund.
The Commissioner of Taxation is treated as having endorsed the fund under Subdivision 50‑B of the Income Tax Assessment Act 1997 on the commencement day as exempt from income tax because the fund is covered by item 1.1 of the table in section 50‑5 of that Act (registered charity).
The Commissioner of the ACNC is treated as having registered the fund on the commencement day under Division 30 of the ACNC Act as the type of entity mentioned in column 1 of item 1 of the table in subsection 25‑5(5) of that Act (charity).
The purpose the fund has, on the day before the commencement day, is treated as being a charitable purpose during the period:
starting on the commencement day; and
ending on the day (if any) the fund ceases to be entitled to be endorsed as a contributing fund (disregarding the amendments made by Schedule 1 to this Act).
5 Opt‑out
If, during the period of 12 months starting on the commencement day, a fund notifies the Commissioner of the ACNC, in the approved form, that the fund does not want item 4 to apply to the fund:
item 4 does not apply, and is taken never to have applied, to the fund; and
the Commissioner of Taxation is treated as having revoked, on the day before the commencement day, the entity’s endorsement mentioned in paragraph 426‑5(h) in Schedule 1 to the Taxation Administration Act 1953.
Part 3—Purposes of registered charitable trusts
6 Purpose of relief of poverty treated as being for public benefit
For the purposes of the Charities Act 2013, a purpose that a trust has on the day before the commencement day is treated, from the commencement day, as being for the public benefit, if:
the purpose is the relief of poverty; and
on the day before the commencement day, the trust is registered under the ACNC Act as the subtype of entity mentioned in column 2 of item 1 of the table in subsection 25‑5(5) of that Act, as in force on the day before the commencement day.
Part 4—Charitable purposes
7 Charitable purposes
For the purposes of paragraph (k) of the definition of charitable purpose in subsection 12(1) of the Charities Act 2013, a purpose:
that, on the day before the commencement day, was a charitable purpose; and
to which paragraphs (a) to (j) and (l) of that definition do not apply;
is treated as being a purpose beneficial to the general public that may reasonably be regarded as analogous to, or within the spirit of, any of the purposes mentioned in paragraphs (a) to (j) of that definition.
This Act’s bill:Explanatory memorandumSecond reading speech
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