Charities and friendly societies are entitled to an exemption from duty in Victoria.
Generally, applications should be made after the relevant transaction is completed. Organisations can, however, contact us on 13 21 61 to seek advice as to their charitable status prior to a transaction.
To qualify for charitable status, an organisation’s purposes must be predominantly charitable, without any possibility of private profit during its operation or at wind-up.
Accordingly, a charitable organisation’s Constitution or Memorandum of Association should contain:
- A clause expressly prohibiting the distribution of any surplus funds, whether income or capital, to its members, and
- A wind-up clause which provides that in the event of a wind-up, surplus assets will be passed on to another charitable organisation and will not be distributed to any members of either the original or substitute organisation
Gather required information
All applications for an exemption must be in writing and clearly state the grounds upon which the exemption is sought. They must include the following documents and information:
- Constitution or Memorandum of Association setting out the purposes or objects of the organisation,
- Details of all services and activities undertaken by the organisation,
- Any promotional material such as pamphlets, newsletters and brochures,
- Evidence of appropriate not-for-profit and wind-up clauses, and
- Details of any exemptions granted by other jurisdictions including any exemptions that the SRO has previously granted
In addition to the above, if the application is for an exemption on a declaration of trust, the original trust deed is required.
If the application is for an exemption on a transfer of land, the following additional information is also required:
- Fully executed transfer of land,
- Contract of sale or any other agreement for sale,
- Completed and signed Goods Statutory Declaration (Duties-Form-02),
- Written confirmation by the authorised officer of the organisation as to:
- whether the transferee is acting as trustee for the transferee organisation, and
- an explanation of the purpose of the transaction
- Proof of payment of purchase price by the organisation including the deposit and balance moneys, and
- Copies of loan agreements and mortgages in regard to the purchase
This transaction should be processed through Duties Online. As such, once you have completed your statement you should give it to a lodging agent (usually your financial institution or your solicitor), who will lodge it with your transfer documentation.
If you do not have a lodging agent, please refer to our list of registered Duties Online users to find one that is convenient for you to use.
Members of the public who are not using a DOL registered user (usually a solicitor or conveyancer) and wish to lodge electronically as an individual can do so after a simple registration process. You can electronically lodge scanned documents for a land transfer of declaration of trust via our website after you register with us.
We will write and advise you of the outcome of your application.