Charities that are entitled to apply for certain tax exemptions in Queensland may need to review and amend their governing documents, following the expiry of a transitional period on 9 November 2020.
Registration as a charitable institution in Queensland
In Queensland, registration as a “charitable institution” with the Office of State Revenue is a pre-condition to a charity being able to apply for exemptions from certain state taxes, such as transfer duty, land tax and payroll tax.
Amendments to the Taxation Administration Act
In 2018, amendments to the Taxation Administration Act 2001 (Qld) clarified the wording that a charity must include in their governing documents which would usually be the constitution in order to be entitled to registration as a charitable institution.
In particular, the amendments now require charities institutions to include express wording in relation to the distribution of assets upon winding up in order to be eligible for registration (and in turn, able to apply for tax exemptions).
Reviewing Constitutions
The changes will also affect charities that were registered prior to the changes to the registration requirements.
Charities that were already registered back in November 2018 were given a 2 year window in which to review their constitutions to ensure that they continue to satisfy the new registration requirements set out in section 149C of the Taxation Administration Act 2001.
If your organisation is registered as a charity in Queensland and has not already done so, we recommend reviewing your constitution to ensure that it continues to meet the registration requirements.
For more information about the changes to the Taxation Administration Act and registering as a charity in Queensland, please contact us.