In Central Bayside General Practice Association Limited v Commissioner of State Revenue [2006] HCA 43 the High Court decided that Central Bayside General Practice Association Limited was a "charitable body" for pay-roll tax purposes under State revenue law even though it was mostly funded by government grants.

The question was whether a body with charitable objects could not be a
charitable body if it were subject to governmental control and influence to such an extent that the body
was carrying out the Department’s purposes rather than its own purpose.

The company provides community health projects. Is it any less a charity becauses those projects must be approved by government to receive funding and are subject to government review? The High Court decided no: "an otherwise charitable body which accepts conditional grants in order
to fulfil its object does not thereby become in any sense an agent, let
alone a creature, of government."