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Charitable institution exemption

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
  • a written statement detailing how the property will be used.

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.

Examples

These examples demonstrate when the exemption applies.