The Charities Bill 2013and the Charities (Consequential Amendments and Transitional Provisions) Bill 2013 were introduced in the House of Reps on Wed 29.5.2013. The main Bill proposes to introduce a statutory definition of charity that would apply to all Commonwealth legislation.

The definition of charity and charitable purposes has been generally based on existing common law principles with minor modifications to modernise and clarify the common law. Under the Bill, to be a charity, an entity must be not-for-profit and have only charitable purposes (other than incidental or ancillary purposes that further or aid the charitable purpose) that are for the public benefit.

The categories of charitable purposes described in the Bill broadly follow the categories described in the Charities Inquiry report in grouping purposes found by the courts to be charitable. In addition, the Bill incorporates purposes specified in the Extension of Charitable Purpose Act 2004, makes further minor extensions to charitable purposes, and modernises the language and categories.

DATE OF EFFECT: would apply from 1 January 2014.

[LTN 102, 29/5/13]