Opening address
The meeting focused on workshopping ideas for developing a strategic administrative roadmap for the not-for-profit (NFP) sector.
The co-chair extended thanks to all members and special guests for attending in person in Canberra, including colleagues fromNew Zealand Inland Revenue. Attendees considered the challenges NFPs have in getting it right and collaboratively generated ideas for how tax, super and registry administration may be strengthened toward 2030.
NFP sector 2025–26 objective for a strategic roadmap
The roadmap is being developed as part of Australian Tax Office (ATO) 2025–26 strategic priorities, to guide the evolution of tax and superannuation administration for the NFP sector to 2030 and beyond.
The focus is on developing an administrative system that is streamlined, fit for purpose, and aligned with the government’s goals of transparency, integrity and doubling philanthropy by 2030. The roadmap will outline a coordinated set of projects and activities designed to:
- Align administrative tax and super frameworks with sector growth and innovation, to support long-term sustainability of NFPs.
- Enhance compliance through simplified processes, targeted support, and eased digital set-up experience.
- Uphold public trust by increasing transparency, accountability, and visibility of the sector’s value to the community.
A series of facilitated discussions and breakout design sessions brought together government and sector representatives in a collaborative exploration of key challenges, opportunities, and future directions for the NFP sector. Discussions focused on:
- sustainability
- simplification
- digital transformation
- sector resilience.
Facilitated panel discussions included:
- How we work together to support NFPs get it right, now and towards 2030.
- Deep dive into the emerging risk landscape and common mistakes.
- Looking beyond the horizon – doubling philanthropy, environmental shifts and emerging trends impacting NFPs.
- Emerging technology and digitalisation – are we ready?
The following high-level messages reflect the key themes that emerged during the discussions.
Strengthening governance and transparency
The NFP self-review return (SRR) has driven improved governance, with over 32,000 lodgments prompting many NFPs to review their registration and governing rules.
Maintaining accurate Australian business number (ABN) and Australian business register data is essential for transparency and fraud prevention, especially as hundreds of regulators and administrators rely on this data.
Key message – strong governance and accurate registration data are foundational to sector integrity and public trust.
Addressing compliance barriers
Common issues include outdated ABN registration details, limited awareness of obligations, outdated legislation or tax products, access to practical guidance, digital literacy gaps, and high volunteer turnover.
Culturally and linguistically diverse (CALD) organisations face additional challenges, including reliance on AI-generated content that may be inaccurate or misleading.
Key message – consideration to legislative reform and more tailored support, practical guidance, education, and digital capability building are essential to overcoming compliance barriers and ensuring equitable access across the sector.
Evolving risk and regulatory expectations
The ATO’s simplified risk framework focuses on operating for purpose, meeting obligations, and preventing fraud and evasion.
NFPs must demonstrate reasonable care, especially when using AI tools, which can confidently produce incorrect outputs.
Key message – good governance and awareness of obligations are essential to protect the sector’s integrity and meet regulatory expectations.
Employer obligations and workforce risk
While most NFPs are income tax exempt, they are not exempt from other taxes and must comply with tax and super obligations.
Charities employ 10% of the Australian workforce, and there have been instances where they show risk of non-compliance, due to unmet employer obligations such as super guarantee and pay as you go withholding.
Key message – NFPs must maintain accurate records, meet deadlines, and engage early with the ATO to manage employer obligations.
Digital identity and system access
Tools like myID are central to securely accessing government systems.
Volunteer led organisations need support to navigate digital identity requirements.
Key message – digital capability is essential for secure and efficient engagement with government systems.
Strategic prioritisation and sector growth
The sector must focus on high impact initiatives and avoid spreading efforts too thin.
Growth is a shared responsibility and government, business, and NFPs must collaborate to drive innovation and sustainability.
Key message – strategic prioritisation and collective action are critical to building a resilient, future-ready sector.
Adapting to structural and technological change
Funding pressures and consolidation are reshaping service models, raising questions about governance, purpose, and community connection.
AI and digital tools offer opportunities but require strong governance, human oversight and data capability.
Key message – NFPs should prepare for structural and technological shifts by strengthening governance, digital resilience, and purpose alignment.
Role of advisors and intermediaries
Trusted intermediaries help translate complex guidance into practical support, especially for small or volunteer led organisations. Particularly navigating inconsistent legislative terminology applied across the NFP regulators.
There is a strong case for better funding of intermediaries to support education and compliance.
Key message – empowering trusted intermediaries to deliver tailored guidance improves sector outcomes and reduces regulatory burden.
Digital tools and software partnerships
Software providers are partnering with regulators to deliver cost-effective, user-friendly tools that support compliance.
Integrated platforms and strong aftercare support are increasingly valued by NFPs.
Key message – purpose built digital tools and strong aftercare support help NFPs meet obligations and streamline operations.
Digital inclusion and equity
Digitisation offers efficiency but risks excluding CALD, remote, ageing, and digitally overwhelmed communities.
Regulators and intermediaries are considering multilingual AI tools, phone-based support, and inclusive design.
Key message – a digital-by-default approach must be matched with inclusive support strategies to ensure equitable access across the NFP sector.
Cybersecurity and fraud risk
AI is being used globally to detect fraud and improve operational efficiency, but also enables fraud-as-a-service.
Many NFPs lack the cyber awareness and infrastructure to manage these risks.
Key message – as AI accelerates service delivery, NFPs should strengthen their cybersecurity awareness and governance to protect data and trust.
International and regional perspectives
New Zealand shares goals in exploring new ideas for philanthropic donation tax incentives and transparency.
There is also international interest in Australia’s reforms in the sector, including deductible gift recipient changes and the NFP SRR.
Key message – regional alignment on integrity and transparency reinforces trust in the sector. Ongoing reform must balance simplicity, regulatory confidence, and sector sustainability.
Summary statement
The diversity and complexity of the NFP sector requires a coordinated, user centred approach to regulation and communication. By harmonising legislation, improving system design, and supporting NFPs the leaders across the government and sector can reduce compliance burden, strengthen integrity, and enable NFPs to focus on delivering meaningful community impact. This is particularly important for smaller organisations, those led by volunteers or serving CALD or indigenous communities.
The ATO will continue working with the NFP Stewardship Group to progress priority items. Smaller working groups may be established to gain traction on key initiatives. Ongoing collaboration will focus on improving communication, reducing burden, and supporting sector resilience.
Through collaboration with the sector, we will continue to build the strategic roadmap and share findings, progress and solutions as they emerge.
Attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Will Day (Co-chair), Small Business |
|
ATO |
Jennifer Moltisanti, Small Business |
|
Arnold Bloch Leibler |
Jessica Wills |
|
Australian Charities and Not-for-profits Commission |
Natasha Sekulic |
|
Charitas Law |
Jae Yang |
|
Charities and Not-for-profits Committee, Law Council of Australia |
Seak-King Huang |
|
Clubs Australia |
Simon Sawday |
|
HWL Ebsworth |
Timothy Stokes (Co-chair) |
|
Institute of Certified Bookkeepers |
Rob Marshall |
|
Justice Connect |
Geraldine Menere |
|
KPMG |
Kaylene Hubbard |
|
Not for Profit Accounting Specialists |
Ellie Patterson |
|
Philanthropy Australia |
Krystian Seibert |
|
Queensland Muslims Inc |
Habib Jamal |
|
Saward Dawson |
Cathy Braun |
|
SW Accountants and Advisors |
Stephen O’Flynn |
|
The Salvation Army Australia |
John McIntosh |
|
The Tax Institute |
Morag Ingham |
|
Treasury |
Peter Robjent |
|
University of South Australia |
Kristian Thoroughgood |
Guests
|
Organisation |
Attendee |
|---|---|
|
ATO |
Anu Duggirala, Enterprise Solutions and Technology |
|
ATO |
Fran Gobel, Small Business |
|
ATO |
Gary Issar, Small Business |
|
ATO |
Glenn Cooper, Private Wealth |
|
ATO |
Hope Tulk, Small Business |
|
ATO |
John Churchill, Office of the Chief Tax Counsel |
|
ATO |
Katie Yeats, Enterprise Strategy and Design |
|
ATO |
Luke Greenfield, Small Business |
|
ATO |
Marielle Delgado, Frontline Compliance |
|
ATO |
Marisa Hewitt, Small Business |
|
ATO |
Matthew Faltas, Small Business |
|
ATO |
Mitchell Dunn, Small Business |
|
ATO |
Nick von Sanden, Smarter Data Program |
|
ATO |
Richard Robinson, Small Business |
|
ATO |
Sourina Simmalavong, Small Business |
|
ATO |
Tony Goding, Small Business |
|
Inland Revenue New Zealand |
Anette Stenberg |
|
Inland Revenue New Zealand |
Jacob Hawker |
|
Inland Revenue New Zealand |
Jay Casey |
|
Inland Revenue New Zealand |
Philip Marshall |
|
Inland Revenue New Zealand |
Sasha Irvine |
|
Inland Revenue New Zealand |
Stewart Donaldson |
|
McKinsey & Company |
Roland Dillon |
|
Reckon |
Alex Alexandrou |
Apologies
|
Organisation |
Member |
|---|---|
|
Community Foundations Australia |
Jane Hawthorne |
|
Giuntabell |
Nunzio Giunta |
|
World Vision Australia |
Ben Scuteri |