As demand for support surges across the country, charities are being asked to do more with less. Yet in this year’s Federal Budget, the Government has failed to act on a clear opportunity to unlock billions in philanthropic funding for the community organisations that need it most.  

Right now, most Australian charities are unable to access tax-deductible donations, including a share of the $15 billion in philanthropic giving funds, because they do not have Deductible Gift Recipient (DGR) status. 

This leaves thousands of frontline organisations locked out of critical funding, even as cost of living pressures, growing social division, and climate-fuelled disasters drive rising demand for their services.  

This year’s Federal Budget was a critical opportunity for the Government to act on a problem it has already acknowledged. 

Following its 2022 election, the Labor Government asked the Productivity Commission to examine how to grow philanthropy in Australia, including its goal of doubling giving by 2030. The Commission found the current DGR system is not fit-for-purpose and recommended reform. 

Yet, two years on, there has been little progress. 

The absence of action to expand access to tax-deductible giving is a missed opportunity to better support tens of thousands of charities delivering essential services across Australia. This comes despite the charitable sector employing more than 10% of Australia’s workforce, with many more Australians volunteering their time to support their communities.  

Without reform, thousands of organisations will remain locked out of funding at a time when their services have never been more critical. 

Quotes attributable to Chris Povey, CEO of Justice Connect:

“Charities are on the frontline of Australia’s biggest challenges, but too many are being held back by an outdated funding system.” 

“The Government has committed to growing giving, but without Deductible Gift Recipient system reform, thousands of organisations remain locked out of the funding they need to support their communities.” 

“This Budget was a clear chance to unlock more generosity and strengthen communities across Australia. By failing to act, the Government has missed an important opportunity to back the sector at this critical time.” 

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