[Michael Olthof]

Howdy,

The manual states that ‘land meets the requirements for classification as Public Benefit Land for the purposes of the ESPL if it is not used for a profit-making purpose…’ etc.

How do you determine if the land is not being used for this purpose? There is no mention of having to take into account ownership of the land.

Regards, MO.

[Michael Olthof]

I also asked this question of Treasury via the ESPL site and received the following response –

The process that councils will need to follow regarding identifying properties that may qualify for Public Benefit status for the purposes of ESPL is as follows:

1. As a base and first step, look at all land currently exempt from council rates and compare which of these are used for purposes listed under Public Benefit definition (Attachment C in manual), those that are on the list and operated as a not-for-profit can be classified as Public Benefit
2. Next would be to check individual cases of organisations where the council is not sure if they are a not-for-profit, by searching the Australian Charities and Not-for-profits Commission registry (ACNC) at https://www.acnc.gov.au/ACNC/FindCharity/Recentlyregistered/ACNC/OnlineProcessors/Online_register/Recentlyreg.aspx?hkey=632b3837-b4db-495b-818e-48619b7c4737.

However, councils will also need to use their judgement where a an organisation may be listed as a not-for-profit or charity on the ACNC register but are not using the land/property for a purpose listed in the Public Benefit list (Attachment C in manual). An example would be a Vinnies or Salvation Army store. The organisations are not-for-profit but they are not using the land for a purpose listed in the Public Benefit list (a retail store is not on the list). Therefor they would not classify as public benefit.

We are fully aware of the onerous process the individual checking on a case by case basis will be for councils, especially in this short time frame. However hopefully using the properties already non-rateable for council rates will catch most of the properties that could be potentially classified as Public Benefit.

It is important to note that councils can’t simply check if a property use is on the Public Benefit list to classify it. Confirming whether it is operated as a not-for-profit must also be done before a property can be classified Public Benefit.

[Cherie Muir]

Thanks for posting this one Michael – it’s very helpful.

[Rod Taber]

So the intention for the use of land is not considered,as part of the overall operation and purpose of the “St Vinnies Store” – Whilst technically a retail outlet I’d hardly consider selling second had pair of shoes for $2.00 etc etc a true retail outlet. The intention and use of the store is to raise funds for the use of the charity . Think Treasury should reconsider their response and include ANY operations carried out by a Charity/PBI that contribute to the overall purpose of the charity be classified as Public Benefit. Just my opinion.

[Neil Charge]

Another question

Approved education and care service are defined as Public Benefit Land – Page 42
The meaning of this education service is contained within the ( Children(Education and Care Services)National Law (NSW)).

“This gives the following example “Education and care services to which this Law applies include long day services, family day care services, outside school hours services and preschool programs including those delivered in schools, unless expressly excluded.”

My question is family day care services are usually carried out in a private home so does the home become “Public Benefit Land” and do we classify this as the dominant use?

[Carla Mete]

We were looking at this exact example today Rod. There are a few tricky ones to classify that’s for sure!

[Laurie McGuiness]

Hi Neil
My understanding is that classifying property as Public Benefit is a two part process.
Firstly the dominant use of the property must be in accordance with the definitions detailed on page 42 of the manual.
Secondly NSW Treasury have advised that it is important to note that councils can’t simply check if a property use is on the Public Benefit list to classify it as Public Benefit. Councils must determine whether it is operated as a not-for-profit before a property can be classified Public Benefit. If a council is not sure if an organisation is a not-for-profit, they can check if they are registered on the Australian Charities an Not-for-profits Commission (ACNC) website.
If it is not registered with ACNC the property should not be classified as Public Benefit.
So if the family day care services were carried out in a private home, it would meet the first test, but being privately owned it is unlikely to be registered with ACNC, and would fail the second test, and therefore could not be classified as Public Benefit.

Hope this helps.

Laurie

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