Lions Club of Northcote Inc. v Commissioner of State Revenue (Review and Regulation) [2019] VCAT 75
Background
This matter concerned whether land used as an opportunity shop in Thornbury was exempt under s74 of the Land Tax Act 2005 (LTX Act) if it was used by a charitable institution exclusively for charitable purposes. The issue before the tribunal was whether the taxpayer itself was a charitable institution, which required consideration of all of its purposes and activities, particularly those purposes or activities of benefit to its members.
Decision
On 16 January 2019, the tribunal ruled in the Commissioner’s favour and found that the club engaged in certain activities designed to further objects such as uniting its members in good fellowship and encouraging high ethical standards in public and private endeavours. Neither of these purposes or activities could be characterised as a means to a charitable end. These purposes were found to be substantial and independent objects for which it was established (i.e. not ancillary or incidental to a charitable purpose) and so prevented the taxpayer from being a charitable institution for the purposes of s74 of the LTX Act.
