On 23 September 2009, the Full Federal Court in Sydney handed down its decision in FC of TV. Aid/Watch Incorporated 2009 ATC 20-131. The court held that while Aid/Watch’s objects were for the relief of poverty, its main purpose was political and thus it was precluded from being a ‘charitable institution’.

The court’s decision is consistent with the Tax Office’s interpretation of the term ‘charity’ in Taxation Ruling TR 2005/21 Income tax and fringe benefits tax: charities.