Frequently Asked Questions
Q: Are charitable trusts exempt from income tax?
Provided that the Div 50 of the Income Tax Assessment Act 1997 (Cth) conditions are met, charitable trusts will be exempt from income tax. In addition to exemptions from income tax, charitable trusts may enjoy concessions for payroll tax, fringe benefits tax, land tax, stamp duties and other forms of taxation.
Valid charitable gifts can potentially be held in perpetuity, however, at the time of inception, the charitable trust must satisfy the rule against perpetuities.