On 18 December 2024, as part of the 2024–25 Mid-Year Economic Fiscal OutlookExternal Link, the government announced it will implement further reforms as part of its commitment to double philanthropic giving by 2030. This measure is not yet law.
Until enacted, taxpayers should follow our practical guidance before making a decision to follow existing law or anticipate the proposed change when completing a tax return.
The proposed changes are:
- Removing the condition that a gift to a deductible gift recipient be valued at $2 or more before the donor may claim a tax deduction. This is proposed to apply to gifts made from 1 July 2024.
- Aligning and increasing the minimum annual distribution rate for public and private ancillary funds and allow ancillary funds to smooth distributions over three years. This will apply from the first financial year after registration of amending ministerial guidelines. The distribution rate will be subject to consultation, and a five-year grace period will apply to any increase in the minimum distribution rate. Treasury is consultingExternal Link on these proposed reforms from 10 June to 1 August 2025.
- Renaming ancillary funds to giving funds to reflect the role the funds have in facilitating giving, as announced by the Assistant Minister on 5 December 2024External Link