Reform of deductible recipient system a big topic at charities Pre-election Forum

Philanthropy Australia was pleased to see deductible gift recipient (DGR) system reform discussed by speakers from both main political parties at a community sector event in Canberra ahead of the election. The reform is a high priority for Philanthropy Australia.

The Charities and Not-for-profit Pre-Election Forum, organised by the Community Council for Australia with the National Press Club last Wednesday, brought together leaders from across the charities and wider NFP sector. The event kicked off with the launch of the CCA’s third report of The Australia We Want, made possible by the support of the AMP Foundation. The report shows that Australia is going backwards on key measures and values nominated by 60 charity leaders in relation to the kind of communities they want to see.

In formally launching the report, CEO of the AMP Foundation and CCA Director, Nicola Stokes said: “Charities and NGOs are a key ingredient in a flourishing and inclusive society. Charity leaders believe Australia can be a better place if governments at all levels look beyond simple economic measures of success and invest time, effort and energy in making Australia a fairer, more inclusive, creative and generous country.

^{The event kicked off with the launch of the CCA’s third report, The Australia We Want, by AMP Foundation CEO and CCA Director, Nicola Stokes, left. CCA CEO David Crosbie, speaking, urged leaders to refocus public discourse on more than economic figures.}

“It is an ongoing journey – a journey we need to plan for, we need to enact it and then we need to monitor. It is about owning our future and creating the Australia we all want,” said Nicola.

CCA CEO David Crosbie encouraged political leaders at the event to “see your role in changing the measures, because by changing the measures, getting better outcomes, we can change Australia. And we can refocus some of the public discourse around values to be about more than economic figures.”

The Pre-Election Forum was a unique opportunity to hear from both the Government’s Assistant Minister for Charities, the Hon Dr Andrew Leigh MP, and the Opposition’s Shadow Assistant Minister for Charities, Senator Dean Smith, regarding their competing visions for engaging and supporting charities and NFPs.

Discussion at the event covered a range of topics, including the reform proposals set out by both the Productivity Commission’s Future Foundations for Giving report and the Not-for-profit Sector Development Blueprint.

^{Shadow Assistant Minister for Charities Senator Dean Smith said DGR reform “is still very much a work in progress”.}

Philanthropy Australia had launched its priorities in relation to the next parliament a week before the event in the document Practical Policy Priorities to Grow Giving in Australia.

Philanthropy Australia’s Policy Priorities

• Reforming the Deductible Gift Recipient System
• Supporting First Nations-led Philanthropy
• Making Superannuation Bequests Easier
• Following Through and Keeping What Works

Dr Leigh said: “In the current context, the main things that we’re looking at are around the Productivity Commission’s recommendations on reform of the DGR System … In a world of constrained resources, we’re looking at those [reform options] where we think we can have the biggest impact. And I think that probably is around DGR reform.” He said the Labor government also wanted to do more on building sector capacity.

Senator Smith said: “I can say this with great confidence DGR reform is still very much a work in progress. The Coalition’s door is very much open and I’m sure it will be a high priority of both the new government and the new opposition in the next parliament.”

Senator Smith also signalled that as part of developing policies to grow giving, the Coalition would work closely with the peak body: “The Coalition’s first step will be to engage with the Fundraising Institute and Philanthropy Australia on a clear agreed plan to uplift giving. This will be a Coalition priority in the new Parliament.”

There was also strong endorsement of the role of community foundations from Dr Leigh and Senator Smith, with the sector benefiting from the new DGR category that has been delivered during this term of Parliament.

^{The panel was hosted by journalist and National Press Club board member Julie Hare, pictured left, with Senator Smith, centre, and Dr Leigh, right.}

Although there were no new policy commitments from the current Assistant Minister for Charities, Dr Leigh said there was a genuine desire to use the next term of Parliament to take further steps to improve the policy environment for charities and philanthropy. “We didn’t commission these reports so they could sit on shelves gathering dust. We commissioned them so we could get working on them, and we’re moving quickly on that process.”

Philanthropy Australia CEO Maree Sidey said: “Philanthropy Australia has valued the opportunity to work and engage with both Andrew Leigh and Dean Smith during this term of Parliament. In the forum last Wednesday, there were some really encouraging signals, including a clear openness to DGR system reform.

“There was positive discussion about the value of community foundations and a genuine intent expressed to continue working together to make the changes needed to grow giving and its impact. When the election is done, we need to build on this and focus on delivering real and tangible reform in the next term of Parliament.”

A full recording of the Charities and Not-for-profit Pre-Election Forum event is available online.