AICD calls for DGR reform to cut red tape and support charitable giving

Thursday, 10 August 2017

The AICD has welcomed the Federal Government’s initiative to streamline the administration of the Tax Deductible Gift Recipient system, but warned against any proposals that would create additional regulatory burden on the sector.

In its submission to the Australian Treasury’s consultation on Tax Deductible Gift Recipient reform opportunities, the AICD welcomed plans to streamline administration of the DGR system by requiring all non-government DGRs to register with the Australian Charities and Not-for-profits Commission and consolidate the administration of the registers under the Australian Taxation Office.

The AICD believes these are sensible measures that bring greater consistency to the regulation of NFPs, reduce red tape for organisations that currently report to multiple regulators, and provide a higher level of public accountability and transparency.

However, the submission does not support requiring additional reporting from charities about their advocacy activities, as it would create a significant regulatory burden without achieving sufficient public benefit.

It is estimated that two thirds of the AICD’s 40,000 strong membership are involved in the work of the NFP sector in some way.

AICD General Manager Advocacy, Louise Petschler, said the Institute was committed to achieving a fit-for-purpose regulatory regime for the NFP sector.

“The not-for-profit sector impacts the lives of millions of Australians, so providing fit-forpurpose regulation is of utmost importance,” she said. “We support a regulatory approach to NFPs that is streamlined, nationally-consistent and importantly, will reduce red tape for this vital sector.

“The AICD believes these proposals will reduce red tape for charities, provide a greater level of transparency and public accountability about the activities of DGRs and, in doing so, support charitable giving.

“These reforms will also help further consolidate and cement the ACNC’s role as the national, specialist regulator of charities. “However, we recognise that advocacy work is a vital part of the role charities play in our society. The last thing we would want to see is the capacity of the sector to perform its role in public life diminished.”


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