Daniela Chiew and Catherine Dean examine key reforms to the administration of tax deductible gift recipients (DGR).
On 5 December 2017, the Federal Government announced reforms relating to the administration and conduct standards for organisations with Deductible Gift Recipient (DGR) status.
With donations to DGRs totalling over $1.3 billion in 2016-17, the announcement highlighted that the reforms were being introduced to strengthen governance arrangements in the sector. Importantly, the Australian Charities and Not-for-profits Commission (ACNC) and the Australian Taxation Office (ATO) will receive additional funding to be able to review a greater number of DGRs.
Some of the key reforms include:
The Government has stated that it will consult on details of the implementation of the announced DGR reforms. Entities registered as DGRs should consider the impact of these reforms as a priority, in particularly in relation to their reporting requirements and corporate governance standards.
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