Philanthropy Australia Statement on Amendments to the Proposed Minimum Rate of Tax on Capital Gains

Philanthropy Australia has welcomed an announcement by the Prime Minister and Treasurer stating that amendments will be made to legislation before the Parliament, to ensure that the proposed new minimum rate of tax on capital gains does not have unintended consequences that impact philanthropy.

Philanthropy Australia wrote to the Australian Government in early June to express concern that the design of the minimum rate of tax on capital gains could have the unintended consequence of reducing incentives for engaging in philanthropy for the benefit of the community. This was followed by a submission to the Senate Economics Legislation Committee inquiry into the relevant Bills seeking to give effect to this change.

Philanthropy Australia CEO, Maree Sidey, thanked the Australian Government for listening to the concerns conveyed by Philanthropy Australia and undertaking to address the issues through legislative amendments. Philanthropy Australia looks forward to reviewing the detail of the amendments once available.

“We acknowledge that tax reform is a complex undertaking, and that various objectives must be balanced, including supporting productivity, promoting equity, and providing revenue to fund important community services.

“Within this context, it’s important for the taxation framework to support generosity to thrive for the benefit of the community,” said Ms Sidey.

Philanthropy Australia’s tax reform priority is a comprehensive overhaul of the DGR system, as recommended by the Productivity Commission and numerous other inquiries.

“The Australian Government needs to act on reforming the DGR system so more charities and causes can benefit from giving, and we are strong supporters of the Unlock DGR campaign seeking action on this,” said Maree Sidey.

ENDS

Further Background View Philanthropy Australia’s submission to the Senate Economics Legislation Committee inquiry into the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and the Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026.