17/10/2025
On 29 September 2025, the ACNC updated their Commissioner’s Interpretation Statement (CIS) on Public Benevolent Institutions (PBIs) to reflect recent consultation with the charity sector and the 2024 Federal Court decision of Equality Australia Ltd v Commissioner of the Australian Charities and Not-for-profits Commission [2024] FCAFC 115 (“Equality Australia Decision”).
Equality Australia is an organisation that seeks to improve the wellbeing and circumstances of LGBTIQ+ people and their families. They applied for PBI status which was refused by the ACNC, with that decision affirmed by the AAT.
The ACNC and AAT found that the Equality Australia was organised to advocate, educate and campaign for law reform and social change but this was not “sufficiently directed” to the relief of distress or suffering experienced by LGBTIQ+ people.
The Full Federal Court upheld the AAT decision.
This decision mainly impacts charities that provide “indirect” forms of relief and provides further clarity around the “sufficient connection” between activities and relief provided by entities.
The key take-aways from the Federal Court in this respect were:
- there must be a ‘sufficiency of connection’ between asserted activities or means, and the benevolent ends;
- this must be more than just a logical connection and is determined by looking at the facts, circumstances and the degree of connection in each particular circumstance – every charity’s activities will be different;
- A PBI’s primary mission must be to relieve the distress of a group of people – PBI status cannot be obtained on the basis that activities incidental to a different mission also result in relieving distress.
- If a charity’s core focus is advocacy and law reform, this is unlikely to be sufficiently directed to benevolent relief and they will be ineligible for PBI status.
The updated CIS reflects these key takeaways but also emphasises that advocacy can be a useful tool for a PBI to achieve its benevolent purposes. The fact that a charity engages in advocacy does not automatically prevent it from being a PBI.
This is a good opportunity to ensure your activities and purpose align with the updated guidance on PBIs.
If you have any questions or would like more information about how this may impact your organisation, contact our expert governance team to discuss further.