International Law

Aid/Watch decision: political advocacy can be charitable

By David Jacobson

In Aid/Watch Incorporated v Commissioner of Taxation [2010] HCA 42 the High Court of Australia decided (5-2) that Aid/Watch did not lose its “charitable institution” tax exempt status because it had engaged in political advocacy relating to its charitable objects.

The High Court accepted Aid/Watch’s submissions that “the generation by it of public debate as to the best methods for the relief of poverty by the provision of foreign aid has two characteristics indicative of its charitable status. The first is that its activities are apt to contribute to the public welfare, being for a purpose beneficial to the community … The second is that whatever else be the scope today in Australia for the exclusion of “political objects” as charitable, the purposes and activities of Aid/Watch do not fall within any area of disqualification for reasons of contrariety between the established system of government and the general public welfare.”

Full post as published by Australian Regulatory Compliance Review on December 15, 2010 (boomark / email).