The Albanese Labor Government will improve support for Australian charities by increasing the distribution rate for giving funds and expanding the number of organisations that can seek endorsement under the community charities deductible gift recipient category.
Public giving funds were established in tax law in 1963, and private giving funds were introduced into the tax law in 2000. Both kinds of giving funds play a valuable role in Australian philanthropy. They allow donors to receive an upfront tax deduction for their gifts, while allowing those gifts to be invested to increase the funds available for charities in the longer term. In return for this tax deduction, giving funds must make a minimum annual distribution to charities that are deductible gift recipients.
The government will set the minimum annual distribution rate for both private and public giving funds at 6 per cent of net assets. This ensures more benefits flow to charities now to help them to provide their services, while still allowing giving funds to invest and provide benefits into the future.
Treasury analysis shows that a fund receiving market returns that distributed 6 per cent of its net assets each year could last for decades even without further contributions to its assets. Of those giving funds that have made a distribution in recent years, around two‑thirds of public giving funds and around half of private giving funds distributed more than 6 per cent of net assets.
The government is also making changes that will allow giving funds to support large projects with charities without making excessive draw downs on their capital, by allowing them to smooth distributions over a three-year period. This provides greater flexibility to giving funds in the type of charitable activity they support and helps ensure distributions can be maintained over time.
The new rate will apply from the first financial year following amendments to the giving fund guidelines, and existing giving funds will not need to meet the new distribution rate for two years.
These changes are a further step in responding to recommendations of the Productivity Commission's Future Foundations for Giving inquiry report and the charity led Not‑for‑profit Sector Development Blueprint.
The government is also adding 34 organisations to the ministerial declaration for community charities, representing the biggest update to the community charity deductible gift recipient category since it was established in 2024.
Declaring these entities as community charities will allow them to access deductible gift recipient status, once they are endorsed by the Australian Taxation Office.
Community charities are embedded in communities across Australia and support a wide range of initiatives, including education, mental health, social inclusion, environmental sustainability, disaster recovery and other local priorities and community needs.
By fostering local giving and collaboration, community foundations strengthen social cohesion and drive long term, place based change.
The government's ongoing support for community charities is part of our goal to double philanthropic giving by 2030.
The names of the Community Charities in the declaration are:
Community Charity Trusts
- Border Trust Community Charity
- Sunshine Coast Community Charity
- Snowy Valleys Community Charity
- Eyre Peninsula Community Charity Trust
- Hands Across Canberra Community Charity Trust
- Mirboo North & District Community Charity
- Northern Rivers Community Foundation Community Charity
- South West Community Foundation Community Fund
- Sydney Community Foundation Community Charity Trust
- Fleurieu Community Foundation
- Gippsland Community Foundation Charity Trust
- Rainbow Giving Australia Community Charity Trust
- Foundation Murrindindi Community Charity
- Foundation Barossa Community Charity Trust
- Australian Jewish Futures Fund
- Mornington Peninsula Community Foundation
Community Charity Corporations
- Albany Community Foundation (WA) LTD
- Ballarat Foundation Community Charity Ltd
- Denmark Community Foundation (WA) Ltd
- Mumbulla Community Foundation Impact Fund Ltd
- Red Earth Community Foundation Ltd
- Cardinia Community Foundation VIC Ltd
- Community First Foundation Ltd
- Foundation for Community Connection Ltd
- Foundation SA Ltd.
- Greater Shepparton Foundation Community Charity Limited
- Murray Connect Community Foundation Ltd
- Southern Highlands Community Foundation Ltd
- Mparntwe Alice Springs Community Foundation Ltd
- Southern Riverina Community Foundation Ltd
- Strathbogie Ranges Community Foundation Ltd
- Healesville & District Community Foundation Ltd
- River North Community Foundation Ltd
- Adelaide Hills Foundation Ltd
