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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
Charities (Amendment) Act 2006
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purposes 1
2. Commencement 2
PART 2--AMENDMENT OF CHARITIES ACT 1978 3
3. New Part IB inserted 3
PART IB--CHARITABLE TRUSTS 3
7J. Definitions 3
7K. Distribution to certain eligible entities 3
7L. Leave to apply trust fund for further purposes 5
7M. Inclusion of non-charitable purposes not to invalidate
trust 6
4. Schedule inserted 7
PART 3--AMENDMENT OF RELIGIOUS SUCCESSORY AND
CHARITABLE TRUSTS ACT 1958 8
5. Change of name 8
6. New Part III substituted 8
PART III--TRANSITIONAL 8
61. Change of name of Act 8
7. References to Act name 8
PART 4--AMENDMENT OF PROPERTY LAW ACT 1958 9
8. Repeal of section 131 9
ENDNOTES 10
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551483B.I1-10/8/2006 BILL LA INTRODUCTION 10/8/2006
PARLIAMENT OF VICTORIA
A BILL
to amend the Charities Act 1978 to make further provision for
charitable trusts, to amend the Religious Successory and Charitable
Trusts Act 1958 and the Property Law Act 1958 and for other
purposes.
Charities (Amendment) Act 2006
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purposes
The main purposes of this Act are--
(a) to amend the Charities Act 1978--
(i) to enable the trustees of a charitable
5
trust to provide money, property or
benefits to or for, or for the
1
551483B.I1-10/8/2006 BILL LA INTRODUCTION 10/8/2006
Charities (Amendment) Act 2006
Act No.
Part 1--Preliminary
s. 2
establishment of, certain eligible
entities; and
(ii) to re-enact with amendments section 63
of the Religious Successory and
Charitable Trusts Act 1958 to provide
5
power for the Supreme Court to grant
leave for a charitable trust fund to be
applied for further purposes; and
(iii) to re-enact section 131 of the Property
Law Act 1958 to provide for the
10
validity of certain charitable trusts; and
(b) to repeal sections 61 and 63 of the Religious
Successory and Charitable Trusts Act
1958 and to rename that Act; and
(c) to repeal section 131 of the Property Law
15
Act 1958.
2. Commencement
This Act comes into operation on the day on
which it receives the Royal Assent.
__________________
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551483B.I1-10/8/2006 BILL LA INTRODUCTION 10/8/2006
Charities (Amendment) Act 2006
Act No.
Part 2--Amendment of Charities Act 1978
s. 3
See:
PART 2--AMENDMENT OF CHARITIES ACT 1978 Act No. 9227.
Reprint No. 2
as at
3. New Part IB inserted 10 February
2000
After Part IA of the Charities Act 1978 insert-- and
amending
Act Nos
'PART IB--CHARITABLE TRUSTS 74/2000,
11/2005 and
7J. Definitions 29/2006.
5 LawToday:
www.dms.
In this Part-- dpc.vic.
gov.au
"charitable trust" means a trust created for
a charitable purpose;
"trust fund" means any property subject to
a charitable trust.
10
7K. Distribution to certain eligible entities
(1) The powers of the trustees of a charitable
trust include a power to provide money,
property or benefits to or for an eligible
entity, or for the establishment of an eligible
15
entity, that, but for a connection to
government, would be a charity to or for
which, or for the establishment of which,
money, property or benefits could be
provided in accordance with the trust
20
instrument.
(2) Sub-section (1) applies despite any provision
to the contrary in the trust instrument.
(3) Sub-section (1) does not apply to the trustees
of a charitable trust unless there is in force a
25
declaration to the effect of the form in the
Schedule in respect of the trust.
(4) The exercise of a power conferred by sub-
section (1) on the trustees of a charitable
trust does not affect the status of the trust as
30
a charitable trust.
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Charities (Amendment) Act 2006
Act No.
Part 2--Amendment of Charities Act 1978
s. 3
(5) The provision, before the commencement
day, by the trustees of a charitable trust of
money, property or benefits to or for an
eligible entity, or for the establishment of an
eligible entity, that, but for a connection to
5
government, would be a charity to or for
which, or for the establishment of which,
money, property or benefits could have been
provided in accordance with the trust
instrument--
10
(a) is deemed to be, and always to have
been, a provision for a valid purpose;
and
(b) does not affect, and is deemed never to
have affected, the status of the trust as a
15
charitable trust.
(6) Sub-section (5) applies despite anything to
the contrary in the trust instrument.
(7) For the purposes only of this section the
factors that may be taken into account in
20
determining whether an eligible entity may
be taken to be connected to government
include--
(a) the extent to which the eligible entity is
under government direction or control;
25
or
(b) the extent to which the eligible entity is
required to implement government
policy; or
(c) the extent to which a government can
30
appoint, or direct or control the
appointment of, the members of the
governing body of the eligible entity--
whether or not the eligible entity receives
government funding.
35
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551483B.I1-10/8/2006 BILL LA INTRODUCTION 10/8/2006
Charities (Amendment) Act 2006
Act No.
Part 2--Amendment of Charities Act 1978
s. 3
(8) In this section--
"commencement day" means the date of
commencement of the Charities
(Amendment) Act 2006;
"eligible entity" means a deductible gift
5
recipient within the meaning of the
Income Tax Assessment Act 1997 of
the Commonwealth;
Note: See section 30-227 of the Income Tax
10 Assessment Act 1997 of the Commonwealth.
"government" means the government of the
Commonwealth or of a State or
Territory or of any municipality of a
State or Territory.
7L. Leave to apply trust fund for further
15
purposes
(1) On the application of the trustees or the
administrator of any charitable trust (whether
created before, on or after 1 April 1959) the
court may grant leave empowering the
20
trustees or the administrator--
(a) to apply the trust fund for such further
purposes as are necessary or desirable
in order to carry out the purposes of the
trust or to make them fully effective or
25
are incidental to the carrying out of
those purposes; and
(b) without affecting the generality of
paragraph (a), if the carrying out of the
purposes of the trust will impose on a
30
charity an expense that is not
adequately met by payments made
pursuant to the trust, to apply such
portion of the trust fund as is proper to
meet those expenses.
35
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Charities (Amendment) Act 2006
Act No.
Part 2--Amendment of Charities Act 1978
s. 3
(2) If leave is granted, the trustees or the
administrator (as the case may be) may
exercise the power subject to and in
accordance with that leave.
(3) Any trustees or administrator wishing to
5
obtain leave under this section may apply to
the court by summons to which the Attorney-
General is to be made a party.
(4) In this section "administrator" means any
person (other than the trustees) administering
10
a trust fund.
Note: This section re-enacts (with amendments) section 63
of the Religious Successory and Charitable
Trusts Act 1958.
7M. Inclusion of non-charitable purposes not
15
to invalidate trust
(1) A trust is not to be held to be invalid by
reason that some non-charitable and invalid
as well as some charitable purpose or
purposes is or are or could be deemed to be
20
included in any of the purposes to or for
which that trust directs or allows the trust
funds or any part of the trust funds to be
applied.
(2) A trust referred to in sub-section (1) is to be
25
construed and given effect to in the same
manner in all respects as if no application of
the trust funds or of any part of the trust
funds to or for the non-charitable and invalid
purpose had been or should be deemed to
30
have been so directed or allowed.
(3) This section does not apply to a trust
declared before, or to the will of any testator
dying before, 26 October 1914.
35 Note: This section re-enacts section 131 of the Property
Law Act 1958.'.
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551483B.I1-10/8/2006 BILL LA INTRODUCTION 10/8/2006
Charities (Amendment) Act 2006
Act No.
Part 2--Amendment of Charities Act 1978
s. 4
4. Schedule inserted
After section 17 of the Charities Act 1978
insert--
"SCHEDULE
5 DECLARATION BY TRUSTEES
The Trustees of the [Insert name of charitable trust], after
having regard to the effect of this declaration on the liability
of the trust to income tax, declare that the power conferred
by section 7K of the Charities Act 1978 to provide money,
10 property or benefits to or for an eligible entity, or for the
establishment of an eligible entity, within the meaning of
that section, is approved as a power that the trustees for the
time being of the [Insert name of charitable trust] are
authorised to exercise.
15 DATED
EXECUTED AS A DEED".
__________________
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551483B.I1-10/8/2006 BILL LA INTRODUCTION 10/8/2006
Charities (Amendment) Act 2006
Act No.
Part 3--Amendment of Religious Successory and Charitable Trusts Act 1958
s. 5
See:
PART 3--AMENDMENT OF RELIGIOUS SUCCESSORY AND
Act No.
6357. CHARITABLE TRUSTS ACT 1958
Reprint No. 3
as at
5. Change of name
6 March 1997
and
In section 1 of the Religious Successory and
amending
Act No
Charitable Trusts Act 1958 for "Successory
5 85/1998.
and Charitable" substitute "and Successory".
LawToday:
www.dms.
dpc.vic. 6. New Part III substituted
gov.au
For Part III of the Religious Successory and
Charitable Trusts Act 1958 substitute--
"PART III--TRANSITIONAL
10
61. Change of name of Act
On and from the commencement of section 5
of the Charities (Amendment) Act 2006, in
any Act (other than this Act) or in any
instrument made under any Act or in any
15
other document of any kind, any reference to
the Religious Successory and Charitable
Trusts Act 1958 is deemed to be a reference
to the Religious and Successory Trusts Act
1958 so far as it applies to any period on or
20
after that commencement, unless the
contrary intention appears.".
7. References to Act name
In the Second Schedule, Fourth Schedule, Fifth
Schedule, Sixth Schedule and Eighth Schedule to
25
the Religious Successory and Charitable Trusts
Act 1958 for "Religious Successory and
Charitable Trusts Act 1958" (wherever
occurring) substitute "Religious and Successory
Trusts Act 1958".
30
__________________
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551483B.I1-10/8/2006 BILL LA INTRODUCTION 10/8/2006
Charities (Amendment) Act 2006
Act No.
Part 4--Amendment of Property Law Act 1958
s. 8
See:
PART 4--AMENDMENT OF PROPERTY LAW ACT 1958 Act No.
6344.
Reprint No. 11
8. Repeal of section 131 as at
19 May 2004
Section 131 of the Property Law Act 1958 is and
repealed. amending
Act Nos
108/2004,
18/2005,
71/2005,
82/2005 and
88/2005.
LawToday:
www.dms.
dpc.vic.
gov.au
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551483B.I1-10/8/2006 BILL LA INTRODUCTION 10/8/2006
Charities (Amendment) Act 2006
Act No.
Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
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551483B.I1-10/8/2006 BILL LA INTRODUCTION 10/8/2006
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