- mainly care for sick, aged or infirm persons
- relieve poverty
- provide full-time care for children (e.g. foster homes)
- are primarily charitable or for the public good (the principal object or pursuit must not be leisure, recreational, social or sporting).
How to apply
To become a registered charitable institution, you must complete an application for registration (Form TA3) and provide supporting evidence.
Send the form and documents to:
Queensland Revenue Office
GPO Box 139
Brisbane Qld 4001.
Supporting evidence
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.
After applying
We will confirm that we have received your application if you provide an email address.
It can take up to 30 working days to process registration applications.
If your application is approved, we will give you a:
- notice of registration (perpetual) stating
- the date your institution was registered
- any other information about the registration
Keep your notice of registration and qualifying use statement in a secure place. You will need these to claim duty exemptions. If you lose them, we can issue a copy or a letter confirming your registration.
Your registration as a charitable institution continues unless your circumstances change and you are no longer eligible to be registered—you must notify us in writing within 28 days if this happens.
If your application is refused, we will give you an information notice explaining the decision.
How to claim an exemption
When you have your notice of registration, you can then claim the relevant exemption.
Payroll tax
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.
Transfer duty
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
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
ABC Charity purchased a property to be used as disability accommodation. Its legal adviser lodged the documents including a statement detailing how ABC will use the property within 6 months for a period of 1 year.
The exemption applies to this transaction.
Rental monies used for charitable purpose—example
ABC Charity purchased a property to be used as disability accommodation, and is waiting on building approval that will take more than 6 months to finalise.
It will rent the property for 12 months from settlement date and use the money for a charitable purpose.
The exemption applies because the rental will be used for a charitable purpose for the specified timeframe.
Delayed start to property use—example
ABC Charity purchased a property to be used as disability accommodation. It is waiting on building approval that will take more than 6 months to finalise, and decides not to rent the property during this time.
ABC applies for a later start date for use of the property for charitable purposes when it lodges its documents for the exemption.
If the reasons for the later start date are approved, the exemption will apply.
Early settlement—example
ABC Charity purchased a property to be used as disability accommodation. The settlement was brought forward by 2 weeks and it needs to settle early. Its legal adviser self-assesses the contract and transfer, and pays the duty.
ABC has 20 months from the settlement date to lodge a request for reassessment under section 17 of the Taxation Administration Act.
Early settlement and delayed start to property use—example
ABC Charity purchased a property to be used as disability accommodation, and is waiting on building approval that will take more than 6 months to finalise.
The settlement was brought forward by 2 weeks and it needs to settle early. Its legal adviser self-assesses the contract and transfer, and pays the duty.
ABC has 20 months from the settlement date to lodge a request for reassessment and apply for a later start date under s.17 of the Taxation Administration Act.
Late request for reassessment—example
ABC Charity purchased a property, but is not sure if it will use the property for a charitable purpose. Duty has been paid on the transaction.
In time, ABC decides to use the property for a qualifying exempt purpose.
The Commissioner of State Revenue would consider a reassessment under section 418 of the Duties Act as long as the property has been used for a qualifying exempt purpose for 1 year.
To claim the exemption, ABC would have to lodge a request for reassessment within 5 years from the date of the original assessment (s.18 of the Taxation Administration Act).
Vehicle registration duty
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.
Insurance duty
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.
Land tax
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.
Also consider…
For more information, see the following rulings and directions:
- GEN003—Charitable institutions
- GEN004—Relief of poverty
- GEN005—Public benevolent institutions
- TAA149C.1—Restrictions that must be included in an institution’s constitution
- TAA149C.2—Charitable trusts
- TAA149H.1—Notice of ceased entitlement.
- Overview
- Public rulings and practice directions
- Payments
- Refunds
- Unpaid tax interest and penalties
- Complaints and objections
- Objections, reviews and appeals
- Client charter
- Compliance activities
- How we connect with you
- Charitable institutions
- Ex gratia relief
- Fees and charges
- Report tax evasion or home owner grant fraud
- Tax equivalents regime
- Help for people affected by natural disasters
- Other languages
- Definitions
- an institution that can be registered as a charitable institution under the Taxation Administration Act