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  • Revoking endorsement

    We can revoke a DGR's endorsement if any of the following apply:

    • it is not entitled to be endorsed
    • it has not provided information or documents within the specified time after a request from us
    • it has not included the specified information on its receipts.

    We will provide written notice of the revocation of endorsement.

    The revocation has effect from a date specified by us and the date may be retrospective.

    If you are dissatisfied with a revocation of endorsement, you can lodge an objection against the revocation. You do this in writing to us, giving the grounds for the objection.

    Removal of trustees

    We can suspend or remove a trustee (other than a Public Trustee) that breaches the guidelines or any other Australian law.

    We will give the trustee written notice advising them of our decision, explaining the reasons why the decision was taken and, in the case of suspension, setting out the period of suspension.

    When a trustee is suspended or removed, we will appoint an acting trustee to undertake the duties of trustee until the suspension period has ended or a replacement trustee is appointed. We may give directions to the acting trustee. Any conduct by an acting trustee that contravenes a notice from us is an offence.

    When we appoint an acting trustee, we must make a written order vesting the property of the public AF with the acting trustee. Non-compliance with a written order from us, or the acting trustee, is an offence.

    The decision to suspend or remove a trustee is reviewable by the Administrative Appeals Tribunal and the Federal Court of Australia.

    Impact on income tax

    DGR endorsement is separate from income tax exemption. Endorsement as a DGR does not allow an organisation to be income tax exempt.

    Only certain types of non-profit organisations are exempt from income tax under the income tax law. If a non-profit organisation does not fall within one of the types of exempt entity, it cannot be exempt.

    See also:

      Last modified: 23 Jul 2020QC 25252