Andrews accuses opposition of charity scare-mongering

In the lead-up to the November election, the Victorian opposition claims new laws and interpretations will result in higher land taxes for charities and not for profits. 

Dan Andrews is accusing the Victorian opposition of fear-mongering after shadow treasurer David Davis accused the government of introducing new laws and expanded interpretations that would result in new taxes on charities. 

“Quietly, in late 2021, with an introduction date of 1 January 2022, Labor has narrowed the Land Tax exemption for charitable institutions by harshly insisting that charitable institutions “exclusively” use their land for charitable purposes,” reads the opposition’s statement, issued on the weekend. 

“This is a nasty new tax that will hurt charities and make it harder for them to do their good works,” Davis said. 

“Daniel Andrews’ new charities tax will clobber and punish small scale groups such as dance classes, callisthenics, choirs and local debating societies just as they recover from the impact of COVID. 

“It is nasty, it is harsh and it is wrong and the Liberals and Nationals will reverse Labor’s sneaky new charities tax.”

But a spokesman for the Victorian government said it was a “Liberal Party scare campaign”.

“The term ‘exclusively’ has a particular meaning in the Act. Land can be eligible for a charities exemption even where property is used some of the time for other activities, like a church hall being hired out to a community group or for a fitness class. This is long-standing policy.”

Pro Bono News understands the government has received correspondence from a number of charities on Section 74 of the Land Tax Act that indicate a possible misunderstanding of the requirement that land must be used “exclusively” for charitable purposes to receive the exemption. 

But none of those organisations advised they had received a bill for land tax.

The government is now in the process of undertaking a review of section 74 to “ensure clarity”.