CHARITIES ACT 1978 - SECT 7K Distribution to certain eligible entities

CHARITIES ACT 1978 - SECT 7K

    (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 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 instrument.

    (2)     Subsection (1) applies despite any provision to the contrary in the trust instrument.

    (3)     Subsection (1) does not apply to the trustees of a charitable trust unless there is in force a declaration to the effect of the form in the Schedule in respect of the trust.

    (4)     The exercise of a power conferred by subsection (1) on the trustees of a charitable trust does not affect the status of the trust as a charitable trust.

    (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 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—

        (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 charitable trust.

    (6)     Subsection (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 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; or

        (b)     the extent to which the eligible entity is required to implement government policy; or

        (c)     the extent to which a government can 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.

    (8)     In this section—

"commencement day" means the date of commencement of the Charities (Amendment) Act 2006 ;

"eligible entity" means a deductible gift recipient within the meaning of the Income Tax Assessment Act 1997 of the Commonwealth;

Note

See section 30-227 of the Income Tax 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.

S. 7L inserted by No. 73/2006 s. 3.