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  • Amended guidelines for ancillary funds during COVID-19

    Ancillary fund guidelines have been amended to encourage increased distributions to deductible gift recipients (DGRs) as a result of the COVID-19 pandemic.

    This change is designed to helps charities at a time when they need it most.

    Ancillary funds that exceed their minimum annual distribution rate for the 2019–20 and 2020–21 financial years, by a total of 5 percentage points or more, will be eligible for a lower minimum annual distribution rate in future years.

    Private ancillary funds (PAFs) and public ancillary funds (PuAFs) are required to distribute at least 5% and 4% of the market value of the fund’s net assets, respectively.

    These rates will reduce to 4% and 3% respectively for eligible ancillary funds from 2021–22. The number of years this reduced rate will apply depends on how much the fund exceeded the minimum rate in the 2019–20 and 2020–21 financial years.

    For example, a private ancillary fund makes an annual distribution of 8% in 2019–20 and 7% in 2020–21. This is 5% above the minimum over the two financial years – making them eligible. The fund will now have a 4% minimum annual distribution rate for the 2021–22 and 2022–23 financial years. They can still choose to exceed the minimum annual distribution rate in those years.

    Find out if you are eligible and how it applies:

    See also:

    Last modified: 23 Jul 2020QC 62538