Lloyd v Commissioner of Taxation (Cth) [1955] HCA 71

High Court of Australia Dixon C.J. McTiernan, Webb, Fullagar and Kitto JJ. Lloyd v Commissioner of Taxation (Cth) [1955] HCA 71

ORDER Question in the case stated answered: Yes. Costs of the case stated reserved for the judge disposing of the appeal.

Cur. adv. vult.

The following written judgments were delivered:—

Dec. 15 Dixon C.J.

Sub-section (5) of s. 8 of the Estate Duty Assessment Act 1914-1947 excludes from an assessment of estate duty, inter alia, so much of the estate as is devised or bequeathed for religious scientific or public educational purposes in Australia. Sub-section (8) defines "public educational purposes" to include the establishment or endowment of an educational institution for the benefit of the public or a section of the public.

By his last will Edward Norman Belcher of Geelong, who died on 31st January 1947, made a disposition for which exemption from estate duty is claimed as one for public educational purposes. The subject of the disposition is the deceased's one-fourth interest, valued at £24,355, in a piece of land called Belcher's Corner. The terms of the disposition are as follows:—"Regarding my quarter share in Belcher's Corner I direct my trustees to hold in trust the income therefrom for the Navy League Sea Cadets Geelong Branch or any other youth welfare organization male or female as in their wisdom they deem fit." This is followed by a direction not to sell the interest unless under compulsion and then to invest the proceeds for such organizations as those before mentioned in the clause. With the help of s. 131 of the Property Law Act 1928 Vict. the validity of this disposition was upheld as a charitable gift so far as it concerns the Navy League Sea Cadets, Geelong Branch, and, because the other purposes mentioned in the clause went beyond what is charitable, the application of the entire interest of the deceased in Belcher's Corner was confined to that corps or body: In re Belcher dec'd. [3] .