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.
The announced 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. From 1 July 2026 this will apply to gifts made after 1 July 2024. This measure is now law.
- Aligning and increasing the minimum annual distribution rate for public and private ancillary funds and allow ancillary funds to smooth distributions over 3 years. This is proposed to apply from the first financial year after registration of amended ministerial guidelines. On 26 February 2026, the Assistant Minister announced the minimum annual distribution rate will increaseExternal Link to 6% of net assets. Existing ancillary funds will have a two-year transition period before needing to meet the new rate. This measure is not yet law
- Renaming ancillary funds to giving fundsExternal Link to reflect the role the funds have in facilitating giving, as announced by the Assistant Minister on 5 December 2024. This measure is not law.
More information
- Gifts and donations | Australian Taxation Office
- Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Act 2026External Link
- Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026External Link
- Ancillary fund reforms consultationExternal Link – 10 June to 1 August 2025