Charity Law's Public Benefit Test: Is Legislative Reform in the Public Interest?

Abstract

This paper explores the current position of the public benefit test in relation to charitable institutions. Primarily this paper focuses on a proposed new definition for charities released in July 2003 by the Commonwealth Government and subsequent legislative moves in 2003, which support this proposal. The paper focuses on the proposals approach to the "public benefit" test. The paper criticizes the proposals lack of certainty in adopting the universal common good test and leaving critical aspects of the test to the courts. After examining foreign jurisdictions the paper makes recommendations how certainty in the public benefit test could be achieved.