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Meeting the 'in Australia' condition

All DGRs must meet the ‘in Australia’ condition.

Last updated 1 January 2024

The ‘in Australia’ condition requires all DGRs to be in Australia. This means that all DGRs must be established and operated in Australia.

The purposes and beneficiaries of a DGR do not have to be in Australia, unless the DGR is one of the following public funds:

  • a public fund for providing religious instruction in government schools
  • a Roman Catholic public fund for religious instruction in government schools
  • a public fund for ethics education in government schools
  • an Australian disaster relief fund
  • a necessitous circumstances fund
  • an Australian war memorial fund
  • a public fund for family counselling or family dispute resolution
  • a marriage guidance fund
  • a public fund for providing money for scholarships.

Example 1: In Australia condition met – public benevolent institution

An institution is set up in Australia as a charity whose main purpose is for the relief of poverty. The institution is a registered public benevolent institution.

The institution’s controlling board, its donors, and most of its assets are in Australia.

Less than half of the money provided by the institution is sent to beneficiaries overseas. The remainder of the money is given to beneficiaries in Australia.

The institution is established and operated in Australia. It meets the ‘in Australia’ condition.

Example 2: In Australia condition met – public benevolent institution

Assume the same facts as Example 1 except that all of the money provided by the institution is sent to beneficiaries overseas.

The institution is established and operated in Australia. The institution is not required to have its purposes and beneficiaries in Australia. It meets the ‘in Australia’ condition.

Example 3: In Australia condition not met

A public fund is set up in an overseas country. Its controlling board, its donors, and most of its assets are in the overseas country. The fund sends money to Australia to help people who are in necessitous circumstances.

Although the public fund’s purposes and beneficiaries are in Australia, the fund is not established and operated in Australia. It does not meet the ‘in Australia’ condition. It can't be endorsed as a DGR.

Example 4: In Australia condition met – developing country relief fund

An organisation is set up in Australia as a registered charity.

It operates a public fund which is a developing country relief fund. The public fund was established with the principal purpose of delivering development or humanitarian assistance activities (or both) in a developing country and in partnership with entities in the country, based on principles of cooperation, mutual respect and shared accountability.

The management committee of the organisation are normally all located in Australia and decisions relating to the public fund are usually made in Australia.

The organisation opens a bank account in Australia and receives donations from members of the Australian public and from ancillary funds. The monies received are held by the organisation in accordance with the terms of the public fund rules.

All of the money provided by the fund is sent to beneficiaries in a developing country.

The fund is established and operated in Australia. The fund is not required to have its purposes and beneficiaries in Australia. It meets the ‘in Australia’ condition.

End of example

 

 

QC52594