The definition of charity in Australia is derived from English common law, originally from the Charitable Use Act 1601 and then several centuries of case law based on it. In 2002, the federal government began an investigation into the definition of a charitable organization. The investigation proposed a statutory definition of a charitable organization based on principles developed in jurisprudence. This led to the Charities Act of 2003, which included restrictions on charities’ political campaign contributions, which many charities found to be an undesirable departure from case law. The government appointed a Tax Commission to consult with charities on the bill. As a result of widespread criticism from charities, the government rejected the bill.
The government then introduced what became the Charitable Purposes Expansion Act of 2004, which did not attempt to codify the definition of a charitable purpose, but simply sought to clarify that certain purposes were charitable purposes whose charitable status was subject to legal doubt. These purposes included babysitting, self-help groups, and closed/contemplative religious organizations.
To raise funds publicly, a charity in Australia must register in each Australian jurisdiction in which it intends to raise funds. In Queensland, for example, charities must register with the Queensland Office of Fair Trading. In addition, any online charity fundraising must have approval from every Australian jurisdiction that requires them to do so, which is currently New South Wales, Queensland, Victoria, Tasmania, Western Australia and the Australian Capital Territory. Many Australian charities have called on federal, state and territory governments to enact uniform legislation allowing state or territory charities to raise funds in all other Australian jurisdictions.
The Australian Commission on Charities and Not-for-Profit Organizations (ACNC) began operations in December 2012 and regulates about 56,000 nonprofits through tax. exempt status and about 600,000 other NPOs in general and seeks to harmonize state fundraising laws.
A Public Benefit Institution (PBI) is a special type of charity whose primary purpose is to alleviate suffering in society, whether it be poverty, illness, or disability. Examples of eligible institutions include hospices, subsidized housing providers, and some nonprofit elder care services.