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DGR Reform Lacks Clarity of Purpose

Community organisations have raised concerns that the government has not set a policy goal for Deductible Gift Recipient reform and has “largely ignored” the benefits of encouraging DGR giving.

In a draft submission in response to the Treasury Discussion Paper on Tax Deductible Gift Recipient Reform Opportunities, the Community Council Australia said members were concerned the paper left “the fundamental question of what is the policy goal of DGR eligibility processes” unanswered. The submission called on the government to “make a clear definitive statement” about the benefit of increasing DGR contributions, and frame any reform of DGR within a context that “explicitly acknowledges the benefits as well as possible costs, and states the purpose of providing DGR status is enhancing our communities.”

The comments come in response to a paper published by the treasury in June, that sought to examine the governance of DGRs and the complexity of DGR application processes. Included in a number of reforms the paper recommended an increased role for the Australian Charities and Not-for-profits Commission whereby all DGRs could be required to be charities registered and regulated by the ACNC.

To read the full Pro Bono article click here.

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