The Australian Government is strengthening philanthropy by consulting on new rules to ensure more money flows from charitable trusts to Australian charities.
As part of these changes, public and private ancillary funds will be renamed 'giving funds' - a clearer term that better reflects their role in supporting charitable giving.
Giving funds are philanthropic trusts that distribute money to Australian charities. The government is seeking feedback on two proposed changes:
- Increasing the minimum annual distribution rate, so more funds reach charities sooner, and
- Allowing distributions to be averaged over three years, helping funds plan their giving more effectively.
The consultation paper, now available on the Treasury consultation hub, invites views from across the sector - including charities and giving funds - on how these changes could help deliver greater benefit to communities in need.
Giving funds play an important role in connecting generous Australians with the causes they care about. While careful investment can help grow these funds over time, the government wants to ensure that donations made with tax concessions are reaching charities at the right pace.
Consultation is open until 1 August 2025.
These reforms implement recommendations from two key reports: the Productivity Commission's Future Foundations for Giving and the Not‑for‑profit Sector Development Blueprint from the Blueprint Expert Reference Group.
