The Australian Charities and Not-for-profits Commission (ACNC) has released a new version of its Commissioner’s Interpretation Statement on Public Benevolent Institutions (PBIs), marking the most significant update to the guidance since 2016. Published on 29 September 2025, the revised Statement outlines how the ACNC currently interprets the law governing PBI registration, an area of charity law that continues to evolve.
Although the term Public Benevolent Institution is longstanding, it has never been formally defined in legislation. This means the ACNC’s interpretation plays a crucial role in helping charities understand whether they fall within the category. As the ACNC notes, determining PBI status is rarely straightforward: the assessment is nuanced, fact-specific, and shaped by both legal principles and contemporary understandings of benevolence.
A Concept That Evolves With Society
Traditionally, benevolent relief was closely linked to hands-on assistance, such as providing food, clothing, or other immediate support to people in hardship. Today, however, many charities operate far beyond this direct-aid model.
Modern PBI activity can include:
- early-intervention programs aimed at preventing harm
- advocacy to change systems contributing to disadvantage
- educational initiatives addressing root causes
- partnerships with community-led organisations
- capacity-building work that strengthens the sector’s ability to deliver relief
For example, an organisation working with teenagers at risk of homelessness may offer resilience programs, wellbeing support, and education-focused initiatives to prevent those young people from ever reaching crisis point. Under the updated ACNC guidance, such work can fall within the scope of benevolent relief if the ultimate purpose is to reduce or relieve disadvantage.
Similarly, investing in or mentoring organisations led by people with lived experience can qualify as benevolent activity if it strengthens their ability to deliver relief in their communities.
This broadened approach recognises that benevolence in the 21st century is not limited to reactive assistance, it can also involve preventative, collaborative, and systemic strategies.
Reflecting Legal Developments and Contemporary Language
The updated Statement incorporates recent case law, including the Full Federal Court’s 2024 decision in Equality Australia Ltd, which clarified several important aspects of PBI classification. Given that much of the foundational case law is decades old, the ACNC’s refreshed guidance aims to reconcile these legal principles with modern charitable practice.
The ACNC has also modernised its language. Outdated and potentially stigmatizing terms such as “sufferers” have been removed to better reflect the preferences and dignity of people experiencing hardship.
Supporting Charities and Their Advisers
A major goal of the new Statement is to help organisations more accurately assess whether they are likely to meet the PBI subtype before applying. Clearer guidance benefits advisers as well, reducing uncertainty and helping charities avoid unnecessary administrative burden.
The updated Statement includes practical examples showing how the ACNC will apply the guidance in different scenarios, and it reflects insights gained from extensive sector consultation.
A Collaborative Approach to Regulation
The ACNC emphasises that engagement with the sector continues to play a central role in shaping its work. Over the last financial year, the regulator held 58 meetings, forums, and consultation sessions with charities, peak bodies, and specialist groups. These conversations, including targeted discussions with non-government schools, give the ACNC deeper insight into emerging issues, operational challenges, and the real-world impact of its regulatory decisions.
Looking Ahead
The ACNC’s updated Commissioner’s Interpretation Statement on Public Benevolent Institutions is more than a technical refresh; it reflects a modern, evolving understanding of how charities relieve disadvantage in Australia. As the boundaries of benevolent relief continue to expand, so too does the need for clear, practical guidance to help organisations navigate their regulatory obligations with confidence.
At Warlows Legal, we work closely with charities, NFPs and social-purpose organisations seeking to understand their structure, purpose and eligibility for registration under various ACNC subtypes, including PBIs. The refreshed Statement provides valuable clarity, but applying it to real-world operations can still be complex and highly fact-specific.
If your organisation is considering PBI registration, reassessing its current subtype, or planning activities that may fall within the scope of benevolent relief, our team is here to assist. We can help you interpret the new guidance, ensure your governing documents align with ACNC expectations, and support you throughout the registration or compliance process.
As the sector continues to evolve, Warlows Legal remains committed to helping charities operate confidently, effectively and in accordance with the law — so you can focus on what matters most: delivering meaningful impact to the communities you serve.
Read here to learn more about the new interpretation of PBI:
ACNC Commisioner’s Interpretation Statement
