Foundation wins landmark stamp duty appeal
MACKAY Community Foundation has secured a successful outcome through the Queensland Civil and Administrative Tribunal (QCAT), resulting in the refund of $50,675 in stamp duty paid on the transfer of 7 Gregory Street, Mackay, along with interest.
In early 2021, Mackay Community Foundation founding director Steve Lowry began discussions with a donor who was seeking to leave 7 Gregory Street to a worthy charity in Mackay as a legacy to the contribution the Mackay community had made to his business success.
The property was transferred to Mackay Community Foundation in August 2021.
As part of the conveyancing process, the Foundation applied for registration as a Charitable Institution in Queensland, which would exempt it from paying stamp duty on the property transfer.
Despite holding Deductible Gift Recipient status with the Australian Taxation Office, the application was declined, with the Commissioner of State Revenue determining that Mackay Community Foundation did not meet the definition of an “Institution”.
The Foundation objected to the decision on two occasions, however charitable institution status was not granted and the Foundation was required to pay $50,675 in stamp duty.
After seeking assistance from Herbert Smith Freehills Kramer, Mackay Community Foundation began the appeal process through QCAT in December 2022.
The hearing was held in May 2025, with Mackay Community Foundation Directors Frances Eason and Ian Joblin providing evidence on behalf of the Foundation.
In December 2025, QCAT decided in favour of Mackay Community Foundation and the Queensland Office of State Revenue was ordered to refund the stamp duty paid, along with interest – with the transfer now complete.
Mackay Community Foundation Director and Company Secretary Ian Joblin said the outcome was “significant” for the Foundation and the wider not-for-profit sector in Queensland.
“Providing a fairer assessment of what a Charitable Institution is, and therefore allowing a greater number of charitable organisations to access exemptions from Queensland Government taxes and duties, has made the work to achieve this outcome worthwhile,” Mr Joblin said.
“Not only have we secured the return of funds to the Mackay community, but we have also earned interest on those monies that will be donated to charitable organisations in Mackay in 2027.
“Mackay Community Foundation would like to thank Herbert Smith Freehills Kramer, Jennifer Batrouney KC, Bridget O’Brien and Genevieve Feely for their professionalism and dedication to this successful outcome.”
Herbert Smith Freehills Kramer said it was “pleased” to represent Mackay Community Foundation on a pro bono basis in its successful application.
“In its decision, the Queensland Civil and Administrative Tribunal recognised the Foundation as precisely the kind of well-established, well-governed organisation with deep community engagement that Parliament intended to benefit from charitable institution registration.
“Together with pro bono counsel, Jennifer Batrouney KC, Bridget O’Brien and Genevieve Feely, we are proud to have assisted in clarifying an important area of law that affects charitable trusts across Queensland.
“This successful outcome serves to safeguard the Foundation’s charitable resources for the Mackay community and provides greater certainty for the broader not-for-profit sector.”