ACNC has interpreted the provision of housing within the charity sub-types of:

  • advancing health; and
  • advancing social or public welfare; and
  • any other purpose beneficial to the general public that may reasonably be regarded as analogous to or within the spirit of any of the purposes mentioned under the other charity sub-type headings.

In its interpretation ACNC draws on the Charities Act, 2013

  • (s. 14) which defines the "purpose of advancing health" to include "the purpose of preventing and relieving sickness, disease or human suffering"; and
  • (s.15) which defines "purpose of advancing social or public welfare" to include,
    • "the relief of poverty, distress or disadvantage of individuals or families
    • the caring for the aged or disabled individuals; and
    • caring, supporting and protecting children and young individuals.

The definition of "poverty" in this context picks up the definition from Ballarat Trustees Executors and Agency Co v Federal Commission of Taxation (1950) 80 CLR 350,385, of "an inability to provide from within one's own resources a modest standard of living in the Australian community".

In its assessment of a housing provider, ACNC will take into account several types of living circumstances which the provider alleviates.
Housing types have been identified as "hostels, crisis accommodation, shared accommodation, units or houses, either temporary or permanent".

Commercial activities may be part of the overall object of providing charitable housing.

If providers are using government schemes, to provide the housing, and on a wind up surplus is required to be returned to a state or territory under law or by contract, then ACNC will interpret the provider as a charity, provided the governing documents stipulate assets will be returned, or distributed to a charity with similar charitable purposes.

The NRAS (National Rental Affordability Scheme) is identified as an example of a charitable housing scheme which charges rent at 20% below the market value, includes a large component of government funding, but does not require the return of any of the housing assets on the expiry of the scheme. On the ACNC test, NRAS would not qualify as charitable.
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