Tuesday, December 5, 2017
The Australian Government has announced that it will reform the administration and oversight of organizations with Deductible Gift Recipient status (DGR).
Australians who support not-for-profit organizations with DGR status receive a tax deduction. The cost to the federal Government of deductions from donations to such organizations was AUD1.31bn (USD1bn) in 2016-17.
The Government said that all non-government DGRs will be automatically registered as a charity with the Australian Charities and Not-for-Profits Commission from July 1, 2019. There will be a 12-month transitional period to assist current non-charity DGRs with compliance.
The Commissioner of Taxation will have the power to exempt DGRs from this requirement in certain circumstances.
Public fund requirements will be abolished, and the DGR registers and Overseas Aid Gift Deduction Scheme will be integrated with the ACNC charity register. Duplicative reporting requirements will also be abolished.
The ACNC will also publish charities' declarations of political expenditure to the Australian Electoral Commission and relevant criminal activities of charities' staff or responsible persons in its Annual Information Statement.