Andrew Leigh

STREAMLINING THE DEDUCTIBLE GIFT RECIPIENT REGISTERS

Deductible Gift Recipient (DGR) status has been streamlined for organisations applying under four unique DGR registers. This is part of the Government’s commitment to boosting philanthropy and supporting a vibrant charitable sector.

The Australian Taxation Office (ATO) currently administers 48 of the 52 categories under which an organisation may be eligible for endorsement as a deductible gift recipient. The four deductible gift recipient categories presently administered by Ministers through departmental registers - environmental organisations, harm prevention charities, cultural organisations, and overseas aid organisations - will now benefit from the reforms to transfer administration of these DGR registers to the ATO.

The reforms introduced under the Treasury Laws Amendment (Refining and Improving Our Tax System) Act 2023, have now received Royal Assent, and practical responsibility for assessing DGRs will be transferred from Ministers to the ATO from 1 January 2024.

The amendments will make all DGR categories consistent in administration, reducing the regulatory burden imposed on endorsed organisations by streamlining the application process and aligning reporting requirements with the other DGR categories.

This reform is expected to reduce the time to obtain DGR status for organisations applying under these four DGR registers from up to two years to around one month.

Eligibility for DGR status is not intended to change as a result of these reforms. The legislation contains transitional provisions to ensure that organisations currently endorsed as DGRs under these four registers will continue to be endorsed, so long as they continue to meet the existing eligibility criteria.

Quotes attributable to Assistant Minister for Employment, Charities, Competition and Treasury Andrew Leigh:

“The Australian Government has been identifying ways to make life easier for Australia’s registered charities. 

Charities should get tax deductibility status based on the quality of their work, and whether they match the requirements of the category, not depending on whether they match an individual Minister’s idea of public benefit.”