4. Evidence of non-profit status

Duty exemptions

The Duties Act 200] (Duties Act) imposes duties on certain transactions and written documents. Transactions involving
property such as real estate or certain business assets are subject to duty. Duty also applies to insurance policies and
applications to register or transfer vehicles.

Duty exemptions

Subject to meeting the use requirements (see below), a charitable institution may be exempt if it:

acquires property

benefits from the creation or termination of a trust over property

acquires or surrenders an interest in a trust

pays a premium for general insurance for its property or an undertaking

applies to register a vehicle or transfer the registration of a vehicle in its name.

Use requirements’

A charitable institution must use property, insured property or property held on trust, principally for one or more qualifying
exempt purpose listed below.

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Property acquired or insured by, or property held on trust for, a charitable institution must be used solely or
almost solely by the charitable institution for | or more of the following purposes (a qualifying exempt purpose):

(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)

activities of a religious nature

public benevolent purposes

educational purposes

conducting a kindergarten or preschool

the care of the sick, aged, infirm, afflicted or incorrigible persons

the relief of poverty

the care of children under section 149C(2)(h) of the Zaxation Administration Act 2001
another charitable purpose or promotion of the public good

providing a residence to a minister, or members of a religious order who are engaged in an object or
pursuit of a kind mentioned in paragraphs (a) to (h).

For subsection (1)(a) to (h), the property acquired, insured or held on trust for is not used solely or almost solely
for a qualifying exempt purpose if the property is used for an employment or salary package of an officer or
employee of the institution.

Use requirements, start date and duration of use

The use requirements also include a specified start date and a minimum period for use as detailed below.

 

 

Transfer duty—an The Commissioner must be satisfied the property acquired by or held on trust for the
acquisition of dutiable charitable institution:

property, the creation or
tabi ofa trust of months after the date of liability for transfer duty arises or a later date fixed by

utiable property, or a

trust acquisition or trust
surrender by a charitable 2. will be used solely or almost solely for a qualifying exempt purpose for | year
institution

1, will start to be used by the institution for a qualifying exempt purpose within 6

the Commissioner by notice given to the institution

from the date the charitable institution starts to use the property for a qualifying
exempt purpose or a later date fixed by the commissioner by notice given to the

 

 

 

' Section 415 of the Duties Act
? Section 416 of the Duties Act