Charitable institutions

Your organisation may be exempt from paying certain duties and taxes if it is a/an:

• religious body
• public benevolent institution
• educational organisation (including universities^*, primary and secondary schools, kindergartens and preschools)
• institution that
  • mainly cares for sick, aged, infirm, afflicted or incorrigible persons
  • relieves poverty
  • provides full-time care for children by ensuring they have food, clothing, shelter, general wellbeing and protection (e.g. foster homes, orphanages)
  • is primarily charitable or for the public good (its principal object or pursuit must not be leisure, recreational, social or sporting).

^* Note: Universities and university colleges are not considered eligible institutions for payroll tax purposes.

Related Public Rulings

• GEN003—Charitable institutions 
• GEN004—Relief of poverty 
• GEN005—Public benevolent institutions 
• GEN006—Guidelines as to charitable object or an object promoting the public good

To apply to become a registered charitable institution, you must:

• complete Form TA3—Application for charitable institution registration (PDF 410 K) 
• provide supporting information, including
  • a copy of the constitution (if applicable)
  • a certificate of incorporation (if applicable)
  • details of the organisations's current or proposed activities
  • details of fees charged for the organisation's activities
  • a statement of doctrine or belief (religious bodies only)
  • any other supporting documentation, such as
    • a mission statement
    • an annual report
    • other relevant published information.

If the organisation is not a religious body or a university, to become a charitable institution it must also:

• state in its constitution that
  • all income and property is to be used solely for promoting the institution's objectives
  • no part of the organisation's income and property will be distributed to its members
• on dissolution, transfer the organisation's assets to an institution that is either
  • able to be registered as a charitable institution
    
    or
    
    
  • one whose purpose is charitable or promotes the public good.

After applying

We will send you a notice of registration once your application is approved. This will state the:

• date your institution was registered
• any other information about the registration.

Note: You must tell us in writing within 28 days if your charitable institution stops being entitled to be registered.

If your application is refused, we will give you an information notice explaining the decision.

You can only claim an exemption if the property is used solely or mainly for a qualifying exempt purpose (that is, for the core activities of a charitable institution).

Sections 414–419 of the Duties Act 2001 explain the circumstances in which you can claim an exemption.

Note: The Taxation Administration Act 2001 administers the registration of charitable institutions; however, the exemption is applied under the Duties Act 2001.

The table below gives an overview of which transactions will be exempt from duty.

Type of transaction	Used solely or mainly for a qualifying exempt purpose?	When can we claim the exemption?	What do we need to provide?
Acquisition of dutiable property Includes Creation or termination of trust  and Trust acquisition or trust surrender	Yes	At time of lodgement Note: You cannot self assess these transactions.	document/s or transfer duty statement approved forms a written request for exemption indicating that the property will be used for a qualifying exempt purpose within the required timeframes
	No	No exemption applies	document/s or transfer duty statement approved forms
Premium for general insurance (property or undertaking)	Yes	At time of paying the insurance premium to your insurer	a copy of your notice of registration or a registration approval letter from OSR a 'qualifying use' statement indicating the purpose for which the insured property will be used (completed by an authorised representative of the registered charitable institution)
	No	No exemption applies	Check with your insurer
Registering or transferring a vehicle	Yes	At time of applying for the vehicle registration transfer (with the motor dealer or Queensland Transport)	a copy of your notice of registration or a registration approval letter from OSR a 'qualifying use' statement indicating the purpose for which the vehicle will be used (completed by an authorised representative of the registered charitable institution)
	No (e.g. property used for an employment or salary package of an employee of the institution)	No exemption applies	Check with Queensland Transport

You must complete a Form LT15—Exemption claim—Charitable institution (PDF 380 K) to claim a land tax exemption, even if you are already registered with us as a charitable institution.

You can claim an land tax exemption if:

• the land is used predominantly by the charitable institution for 1 or more exempt purposes 
• for vacant land—the charitable institution intends to use it predominantly for 1 or more exempt purposes within 3 years after the land was acquired (or longer if we extend the use requirement period).

The exemption will not apply if:

• the land is not used by the institition predominantly for 1 or more exempt purposes before the use requirement period ends
• during the use requirement period, the
  • institution starts to use the land for a purpose that is not an exempt purpose (unless it is predominantly used for an exempt purpose)
  • land is sold before the institution has used it predominantly for an exempt purpose.

You must tell us within 28 days if you do not meet the exemption criteria.

Payroll tax exemptions apply to wages paid or payable by a charitable institution to a person who is engaged exclusively in working for:

• the charitable institution for a qualifying exempt purpose 
• another charitable institution that is either a hospital or non-tertiary educational institution. The work must be of a kind ordinarily performed in connection with the conduct of a hospital or non-tertiary educational institution for the exemption to apply.

Wages paid to workers engaged by employment agents to work for the charitable institution may also be exempt in certain circumstances.

See Public Ruling PTA009—Exempt charitable institutions—meaning of ‘exclusively’ for more information.