Philanthropy body doubles down on DGR reform push

Posted on 22 Apr 2025

By Greg Thom, journalist, Institute of Community Directors Australia

Vice pressure

Philanthropy Australia (PA) has begun turning the screws on whichever party forms federal government to prioritise policies designed to increase charitable giving.

PA CEO Maree Sidey said she wanted to see real and tangible action in the first term of the next parliament to grow the giving pie.

“When it comes to growing giving, the policy choices of governments make a difference, with the Productivity Commission’s Future Foundations for Giving report identifying a range of reforms to support giving in Australia,” she said.

As the election campaign enters the home straight, PA has released released its policy priorities to grow giving which include:

  • reforming the deductible gift recipient (DGR) system: The Productivity Commission’s Future Foundations for Giving report concluded that the DGR system, which determines which charities can receive tax deductible donations, is not fit for purpose and needs reform
  • support for First Nations-led philanthropy: A coalition of the First Nations leaders in philanthropy are advocating for the Australian Government to support First Nations philanthropy
  • making superannuation bequests easier: Simplifying the process for Australians to bequeath excess superannuation to a charity is described by PA as a practical reform that would cut red tape and remove barriers to giving
  • following through and keeping what works: PA has called for the new DGR category for community foundations to be fully implemented.

PA also said it supported retaining the existing minimum distribution arrangements for ancillary funds.

“The case for fixing the DGR system is clear, and we shouldn’t be waiting for, yet another government commissioned report to recommend reform."
Philanthropy Australia CEO Maree Sidey.

Sidey said that growing giving matters because it benefits the community, supporting the vital work of charities in making a difference to people’s lives and building a more inclusive Australia

“We are releasing these priorities to send a strong signal that in the coming term of the Parliament, we will be seeking real and tangible action to enhance the policies that encourage giving, from whoever forms the Australian government,” she said.

Philanthropy Australia CEO Maree Sidey.

The Productivity Commission’s 468-page Future Foundations for Giving report was handed to the federal government in May 2024

In December, Charities Minister Andrew Leigh announced the government would adopt the inquiry’s recommendation to scrap the $2 minimum for tax deductible donations.

He said scrapping the $2 threshold, which has been in place since the introduction of decimal currency in 1966, would encourage more Australians to give by rounding up purchases at the point of sale in store and online.

Canberra is yet to fully respond to most of the other suggested reforms in the report.

“The case for fixing the DGR system is clear, and we shouldn’t be waiting for, yet another government-commissioned report to recommend reform – there needs to be decisive action taken in response to the Productivity Commission’s Future Foundations for Giving report,” said Sidey.

“Supporting First Nations philanthropy, making superannuation bequests easier, full operationalisation of the new DGR category for community foundations, and retaining the existing minimum distribution arrangements for ancillary funds are all important and practical ways that government action can support growing giving in Australia.”

More information

DGR reform the focus of ‘doubling philanthropy’ inquiry

Canberra moves to make donating easier

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