Treasury’s consultation paper ‘Deductible Gift Recipient Reforms’

21 September 2018

BDO welcomed the opportunity to provide feedback in response to Treasury’s consultation paper ‘Deductible Gift Recipient Reforms’ (DGR) released on 22 August 2018.

This BDO submission contains recommendations on the components of the Government’s package of deductible gift recipient (DGR) reforms announced on 5 December 2017 including that:

  • DGR entities should be able to commence the application process as soon as any reform is finalised, rather than delaying any action until 1 July 2019
  • The ATO should delay any action to remove DGR registrations until the ATO is satisfied that the entity has no intention of seeking charity registration or exemption
  • There should not be any distinction between charities registered on the ACNC register under a streamlined application versus a full application
  • Where the ATO allows an entity to be exempted from being registered as a charity, an entity should fulfil all of the regular reporting requirements of the ACNC, including information contained in the annual information statement
  • Responsibility associated with the community requirement should be dispensed with and replaced with the rule that the persons in charge of ancillary funds are required to satisfy the ACNC governance requirements and to meet the test as Responsible Entities.

These and other issues are expanded upon in the attached appendix.