Community Housing Limited v Clarence Valley Council

Community Housing Limited (CHL) appealed to the Court of Appeal of New South Wales against decisions of the Land and Environment Court that had dismissed its applications for declarations that it was a public charity and that its land was used for charitable purposes, thereby entitling it to an exemption from land rates under the *Local Government Act 1993* (NSW). The respondent councils argued that CHL was not a public charity and that its activities did not qualify for the exemption.

The primary legal issues before the Court of Appeal were whether CHL constituted a public charity for the purposes of section 556(1)(h) of the *Local Government Act 1993* (NSW), and whether the land it owned was used or occupied for charitable purposes within the meaning of that section. A further issue concerned the jurisdiction of the Supreme Court to grant relief by way of declaration, notwithstanding the existence of a specific right of appeal to the Land and Environment Court.

The Court of Appeal found that CHL's provision of housing for low-income persons and its associated training and development programs were charitable purposes. The Court reasoned that the objects of CHL, as set out in its constitution, were for the public benefit and fell within the established categories of charitable trusts. The Court also held that the specific right of appeal provided by the *Local Government Act 1993* did not impliedly exclude the general supervisory jurisdiction of the Supreme Court to restrain breaches of statutory duty. The Court concluded that the provisions were complementary, not conflicting, and that the Land and Environment Court had erred in its previous findings.

The Court of Appeal allowed the appeal, set aside the orders of the Land and Environment Court, and made declarations that CHL was a public charity and that its land was used for charitable purposes from July 2013 until the date of judgment. The Court further declared that the rates notices issued by the respondent councils in July 2013 were invalid. The respondent councils were ordered to pay CHL's costs at first instance and on appeal.