Changes proposed for DGR status and charitable giving rules

The Federal Government released a draft report that proposes policy reforms to incentivise philanthropy and increase outcomes for donors, charities and taxpayers.

Several reforms to the administration and oversight of organisations with deductible gift recipient (DGR) status also came into effect on 1 January 2024.

The Productivity Commission released a draft report reviewing philanthropic giving in Australia and recommended various reforms.

Tax deductible gifts and donations

Tax incentive for donating

Individuals who donate more than $2 to an entity with DGR status and have taxable income can claim a 100% tax deduction for their donation. The draft report found that a full tax deduction is an effective mechanism for encouraging donations and does not need to be changed substantially.

DGR-endorsed entities reform

The process for obtaining DGR status has been streamlined for organisations applying under 4 unique DGR registers

As of 1 January 2024, the ATO administers the total 52 categories under which an organisation may be eligible for endorsement as a DGR entity.

This reform is expected to reduce the time to obtain DGR status for organisations from up to 2 years to around one month.

Impact on education providers

The draft report outlines a number of concerns around school building funds, including its position that donors may be able to convert tax deductible donations to private benefits. Donations may reduce the cost of school fees. As donors are likely to have children at the school, this might be considered to be a private benefit. Accordingly, the Commission recommends that school building funds no longer be eligible for DGR status.

Impact on religious charities

If the draft report’s recommendations are approved, churches and other religious organisations that currently have a school building fund would lose their DGR status. The draft report also proposes to remove the DGR category for religious education in government schools.

Basic religious charities The draft report also proposes that the concept of basic religious charity be removed so that all charities are subject to the same ACNC governance and reporting requirements. This would mean that charities that are currently basic religious charities would be required to comply with the ACNC’s governance standards and provide financial information in their annual information statements. Depending on their size, they may need to submit financial statements that have been audited or reviewed.

Next steps

This report is currently in draft form and is open for consultation. We will keep you informed about any changes that are brought by the report once it is finalised.

In the interim, please reflect on the matters raised by this report and reach out to us if you would like to discuss further on how these proposed changes might impact you.

Global affiliations with and regulated by

Chartered Accountants Australia and New Zealand

American Institute of Certified Public Accountants CPAs.

Institute of Chartered Accountants of India.

Australian Securities and Investments Commission.

Partner with

MYOB essential cloud accounting software.

QuickBooks ProAdvisor Certificate. — QB ProAdvisor

What do our happy customers say about us?

Success Stories

I experienced a sea change in the approach and results of RBizz Solutions when we moved from previous accountant. We have outsourced all accounting functions of our medical practice to RBizz Solutions who manage them very efficiently. I found them approachable, experienced, professional and above all supportive. Their industry knowledge is commendable. In many instances I observed their practices technically advance and systems driven. I highly recommend them to other medical practices and doctors.

RBizz Solutions handled restructuring of our medical practice business very innovatively, efficiently and accurately. They professionally planned and executed all accounting and compliance processes. I found them responsive, proactive and caring. Their systems are advanced, established and efficient in producing meaningful reports. They highlight current and possible challenges in regular discussions and advise in an easy to understand manner. I am confident tin recommending their business accounting serviced to other businesses.

The approach of RBizz Solutions towards understanding the needs of clients and offering solutions which are fresh, practical and long-lasting is really commendable. I experienced them going all the way to find solutions which are not common. I availed their taxation services for our professional services business and myself. I definitely recommend them to all business and non-business clients.

For small businesses like us, RBizz Solutions have all the right knowledge, experience and tools for a very timely and authentic support. We have found them very friendly and approachable all the time. They take extra care in giving their best advice. The best part is, they keep client's benefit and satisfaction at the top. We highly recommend their services to other businesses.

We availed CFO Services of RBizz Solutions for our young pharmaceuticals business in setting-up financial management processes, reports and decision-making tools. I am impressed with their experience in easing the administrative, governance and compliance challenges start-ups generally face. They have very organized approach to their work. I sincerely appreciate and recommend their services.

In setting-up new company and designing a business structure appropriate to my industry, I took help of RBizz Solutions. Their knowledge and experience on start-ups is deep and futuristic. They advised me on certain aspects which a business must be clear for its long-term stability and growth. With great confidence in their services I will recommend them to new and established businesses.

Rbizz solutions assisted us in organizing our operations by setting-up new processes. With new processes all the instances of administrative lapses have been arrested. In short period of time the efficiency of our business processes has increased tremendously and it has also helped in preparing the performance reports in no time. We would recommend their services to other businesses who are looking for assistance in establishing seamless operations.

RBizz Solutions helped me in designing and setting-up billing, collection, accounting and reporting processes for my business in IT services. Their approach is very innovative. They focus on simple but advance solutions. Their knowledge of integration of systems is impressive. I am significantly saving my time and energy and being able to focus more on my core business. I am happy to recommend their services to any small business owner.