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  • Deductible gift recipient reform

    On 5 December 2017 the government announced reforms of the administration and oversight of organisations with deductible gift recipient (DGR) status. The changes are designed to strengthen governance arrangements, reduce administrative complexity and ensure continued trust and confidence in the sector.

    Major aspects of the reforms include:

    • requiring non-government organisations wishing to be endorsed as a DGR to be registered as a charity with the Australian Charities and Not-for-profits Commission (ACNC)
    • the removal of public fund requirements for DGRs
    • transferring the administration of the four DGR registers to the ATO and the ACNC.

    Delays to enabling legislation

    Legislation to give effect to these reforms was originally intended to commence on 1 July 2020 subject to it being introduced into, and passed by, parliament. The introduction of this legislation has been delayed due to the reduced parliamentary sitting days caused by the COVID-19 pandemic.

    On 13 May 2020, the Assistant Minister for Finance, Charities and Electoral Matters, Senator the Honourable Zed Seselja, announced that legislation to give effect to these reforms would no longer commence on 1 July 2020 due to delays caused by the COVID-19 pandemic. Instead, the legislation will commence three months after it receives royal assent, following passage through parliament.

    Whilst there is no timeframe for when the announced changes will be introduced into parliament, non-government DGRs that are currently not registered as charities are encouraged to register with the ACNC in preparation for legislation passing parliament and receiving royal assent.

    Further updates will be provided once the legislation is introduced into parliament.

    Treasury consultation on exposure draft

    Treasury has released an exposure draft of legislation to require non-government DGRs to register as charities for public consultation. This is one element of the announced DGR reforms. Consultation closes on 4 December 2020.

    You can have your say before the closing date by accessing the Treasury consultation pageExternal Link and following the instructions provided.

    See also:

      Last modified: 18 Nov 2020QC 54421