Previously no definition existed, which meant that the meaning of a charity and charitable purposes was administered under the Statue of Elizabeth 1601.
The definition aims to preserve the common law principles of the Statue of Elizabeth 1601 with some minor modifications to convey modern society and community needs.
“Finally Australia has legislation which will provide more certainty and clarity about the meaning of charity and charitable purpose and will make the definition easier to understand,” says Assistant Treasurer David Bradbury.
For an organisation to be recognised as a charity under the definition it must be a not-for-profit and only have charitable purposes that are for public benefit.
The statutory definition of a charity will commence on 1 January 2014.