Mid Year Economic and Fiscal Outlook Forecast: Streamlining of DGRs put on hold for a year

In the Mid Year Economic and Fiscal Outlook Forecast (MYEFO) released in mid-December 2018, the government put back the implementation of the streamlining of deductible gift recipient (DGR) regulation by a year. The previous year’s MYEFO announced $5.7 million for the Australian Charities and Not‑for‑profits Commission (ACNC) and the Australian Taxation Office (ATO) to improve governance, reduce complexity and boost integrity of the deductible gift recipient (DGR) framework.

The ACNC and ATO are to be funded to conduct additional reviews of DGRs’ eligibility, to ensure that tax concessions remain targeted to those entities that are entitled.

It is now anticipated that from 1 July 2020, non‑government entities with DGR tax status will be automatically registered as charities with the ACNC, providing consistent oversight of DGRs by the national charity regulator. The Commissioner of Taxation will have the power to grant exemptions from this requirement in limited circumstances.

The Register of Environmental Organisations, Register of Harm Prevention Charities, Register of Cultural Organisations and Overseas Aid Gift Deduction Scheme will be integrated with the ACNC Charity Register. The ACNC will assume all administrative responsibilities for those, harmonising applications and reporting in one central location.