Charitable institutions

You’ll need to attach the following supporting information to your application for registration (Form TA3):

• a copy of the organisation’s constituting documents (such as constitution, rules of association, memorandum of understanding, trust deed) with evidence of its effective date
• a certificate of incorporation (if applicable)
• details of the organisation’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 start date of your registration is a date before you apply, you will also need to:

• give reasons why you did not apply earlier
• advise if there are any matters for exemptions (for duties, land tax or payroll tax) that you intend applying for or that are outstanding.

To be registered as a charitable institution (other than as a religious body, a university or a university college), an organisation’s constitution must state that:

• all income and property are used solely for promoting its objectives
• no part of the income and property will be distributed to members
• on its dissolution, the remaining assets will be transferred to
  • an institution that can be registered as a charitable institution under the Taxation Administration Act
    or
  • an institution or purpose the Commissioner of State Revenue is satisfied is charitable or promotes the public good.

Once you have registered with us as a charitable institution, we will contact you about the exemption.

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

• your charitable institution for a ‘qualifying exempt purpose’
• another charitable institution that is either a hospital or ‘non-tertiary educational institution’. To claim an exemption, the employee must be doing the kind of work usually performed by a hospital or non-tertiary educational institution.

Wages that are exempt from payroll tax are also exempt from the mental health levy.

A qualifying exempt purpose means:

• religious activities
• educational purposes (including running a kindergarten, but excluding a university or university college)
• public benevolent purposes
• caring for sick, aged, infirm, afflicted or incorrigible people
• relief of poverty
• caring full-time for children by providing for their general wellbeing and providing them with food, clothing and shelter
• another charitable purpose or promotion of the public good
• providing a residence to a minister or member(s) of a religious order conducting a previously listed activity.

A non-tertiary educational institution is not operated by or on behalf of the state and has one or more of the following as its primary purpose or pursuit:

• the education of students in primary or secondary schools, or both
• the conduct of a rural training school
• the conduct of a kindergarten or preschool.

When you are registered as a charitable institution in Queensland, you may be eligible to claim an exemption from transfer duty when you acquire dutiable property. The exemption also applies to trust transactions such as trust creations, terminations, acquisitions and surrenders.

The exemption will only apply if the property is:

• used solely or mainly for a qualifying exempt purpose (i.e. the core purpose of the institution)
  or
• used for fundraising activities (e.g. rent derived from a property) that are carried out for a qualifying exempt purpose.

A qualifying exempt purpose includes:

• religious or educational activities (including kindergartens)
• care for the sick, aged, infirm, afflicted or incorrigible persons
• relief of poverty
• full-time care for children by protecting their wellbeing and giving them food, clothing and shelter
• another charitable or public benevolent purpose
• providing a residence to a minister or members of a religious order conducting a previously listed activity.

Property used for an employment or salary package of an officer or employee of a charitable institution is not exempt from duty.

To claim the exemption, you need to provide us with:

• the documents for the transaction, or a transfer duty statement (Form D2.3) if no documents exist
• a dutiable transaction statement (Form D2.2)
• an identity details annexure for each non-Australian transferor and transferee, when transferring real property (e.g. homes, apartments, business premises and vacant land)
• a written statement indicating that the charitable institution will:
  • start to use the property for a qualifying exempt purpose within 6 months of the liability for transfer duty (e.g. settlement). A later start date may be requested at the time of lodgement but reasons for the delay and an estimated start date should be provided
  • use the property (or the funds from the property) solely or mainly for a qualifying exempt purpose for at least 1 year
  • not use the property for an employment or salary package of an officer or employee
• a written statement detailing how the property will be used.

Registered self assessors cannot self-assess this exemption. However, they can assess the documents if settlement is imminent, then apply for a reassessment within the specified timeframe.

The Taxation Administration Act 2001 administers the registration of charitable institutions; however, the exemption is applied under sections 414–419 of the Duties Act 2001.

These examples demonstrate when the exemption applies.

Property used for charitable purpose—example

Rental monies used for charitable purpose—example

Delayed start to property use—example

Early settlement—example

Early settlement and delayed start to property use—example

Late request for reassessment—example

An exemption is available to charities if they use a vehicle mainly for their charitable activities. The exemption is not available if the vehicle is part of an employment or salary package.

Find out how to apply.

Once you have registered as a charitable institution with us, you will not pay duty on a premium for general insurance for property or an undertaking of a charitable institution if the insured property is used mainly for one of the following qualifying exempt purposes:

• to conduct religious or educational activities (including kindergartens)
• to care for the sick, aged, infirm, afflicted or incorrigible persons
• to relieve poverty
• to provide full-time care for children by protecting their wellbeing and giving them food, clothing and shelter
• to conduct another charitable or public benevolent purpose
• to provide residence to a minister or members of a religious order conducting a previously listed activity.

Insurance on property that forms part of an employment or salary package for an employee of a charitable institution is not exempt from duty.

A full definition can be found in section 415 of the Duties Act 2001.

To claim the exemption, you need to provide your insurer with a:

• copy of your notice or letter of registration as a charitable institution
• ‘qualifying use’ statement, indicating the purpose for which the insured property will be used, signed by an authorised representative of the registered charitable institution.

A qualifying use statement will have been sent to you with your letter of registration as a charitable institution.

A charitable institution registered under the Taxation Administration Act 2001 may be able to claim an exemption on land they own that is mainly used for an exempt purpose.

An exempt purpose is:

• a religious or educational activity (including kindergartens)
• caring for the sick, aged, infirm, afflicted or incorrigible people
• relieving poverty
• full-time care for children by protecting their wellbeing and giving them food, clothing and shelter
• promoting the public good
• another charitable or public benevolent purpose
• providing a residence to a minister or member(s) of a religious order conducting a previously listed activity.

You may also claim an exemption on vacant land where you intend to use it mainly for an exempt purpose within:

• 3 years of acquiring the land
  or
• a longer period approved by the Commissioner.

Complete a charitable institution exemption claim (Form LT15) for land owned by a registered charitable institution and used for an exempt purpose.

You must tell us within 28 days if your circumstances change and you no longer meet the exemption criteria.