The Government has announced a later start date for the 2011â€‘12 Budget measure Notâ€‘forâ€‘profit sector reforms â€” introducing a statutory definition of ‘charity’. This measure will take effect from 1 January 2014, rather than 1 July 2013 as originally announced. This measure is estimated to have a small but unquantifiable cost to revenue over the forward estimates period.
The new start date will provide time for the Australian Charities and Notâ€‘forâ€‘profits Commission to develop guidance for charities regarding the definition.
The proposed statutory definition of charity preserves common law principles and provides greater clarity and certainty about the meaning of ‘charity’ and ‘charitable purpose’.