The future funding viability of some charitable organisations could be at risk due to a Federal Court ruling made this week.

The ruling found in favour of the Australian Taxation Office to restrict the legal definition of a charitable organisation for taxation purposes.

Aid/Watch, a small charity that monitors how Australian foreign aid is distributed, has been the first casualty of the ruling.

It has been stripped of its charitable status because it has a ‘view’ on government policy.

The Federal Court ruling has raised concerns that public debate could be stifled as the core function of environmental and charitable organisations is put under threat.

2ser’s Alex Angel spoke with Aid Watch’s Dr James Goodman.