Equality Australia has failed to overturn a decision that centred on whether its political advocacy provided direct relief to LGBTQI people.
A delegate of the Australian Charities and Not-for-profits Commission refused to list the organisation as a public benevolent institution in December 2020, with then-commissioner Gary Johns upholding this on appeal in April 2021.
The ACNC found the charity had an independent, non-benevolent purpose to advocate for law reform and social change which did not amount to direct relief for people in need.
Without the listing, people cannot make tax-deductible donations directly to the organisation and must instead send gifts through another entity.
Equality Australia appealed the ACNC's decision with the Administrative Appeals Tribunal in June 2023, where it was again upheld in a two-to-one judgment.
On Thursday, three judges of the Federal Court dismissed a further appeal, cementing the findings of the tribunal as well as the ACNC's decision.
A public benevolent institution had to have a direct connection between its activities and what it was trying to achieve, the judges found.
While the tribunal had accepted that LGBTQI people were persons in distress, it found there was not a sufficient link between reducing this distress and Equality Australia's political advocacy to promote law reform, the court said.
The charity's CEO Anna Brown expressed disappointment with the decision and said the organisation was considering its options.
"Equality Australia has been involved in legal proceedings to alter the way our charitable status is defined to better reflect the work we do and streamline our donations process," she said.
"Today's ruling does not change the fact that Equality Australia remains a fully registered and accredited charity, and we will continue working to improve the lives and wellbeing of LGBTIQ+ Australians."
ACNC commissioner Sue Woodward welcomed the court's determination and said the watchdog would be considering the judgment over the coming days.
