Reforms to ancillary funds and the community charity DGR category
The Australian Government has announced reforms designed to increase the flow of philanthropic funding to operating charities and broaden access to tax‑deductible donations. The announcement focuses on two connected reforms: - public and private ancillary funds will be renamed ‘giving funds’, all public and private giving funds will be required to distribute at least 6% of net assets each year (current minimum rates are 4% for public ancillary funds and 6% for private ancillary funds), and giving funds will be able to average their minimum distributions across a three‑year period
- the addition of 34 organisations to the ministerial declaration for ‘community charities’ (the community charity deductible gift recipient (DGR) category was introduced in 2024)
The new 6% distribution rate will apply to giving funds from the first financial year after the relevant taxation guidelines are amended. Existing giving funds will have a two‑year transition period before they must comply with the higher rate.
As part of our Unlock DGR campaign, we issued a media release outlining Justice Connect’s position on the announcement.
ATO resources on Payday Super
From 1 July 2026, employers must pay their employees’ superannuation guarantee at the same time as their salary and wages. Organisations may currently be paying super contributions fortnightly, monthly or quarterly, so this may be a change that will require careful cashflow management. The Australian Taxation Office (ATO) has published resources to help employers get ready for Payday Super. These include: - fact sheets on SuperStream changes, Key changes to super guarantee, Qualifying earnings, Payday Super checklist for employers, and
- videos to help with the transition to Payday Super
New South Wales: New NSW fundraising laws start 1 April
In NSW, changes have been made to the Charitable Fundraising Act 1991 and Charitable Fundraising Regulation 2021 (NSW fundraising laws) by the Customer Service Legislation Amendment Act 2024 and the Customer Service Legislation Amendment Regulation 2026. The reforms are part of a broader national effort to reduce red tape and align fundraising rules for fundraisers across Australia.
From 1 April 2026, the National Fundraising Principles will apply to all organisations that hold a fundraising authority in NSW, regardless of whether they are registered charities with the Australian Charities and Not‑for‑profits Commission (ACNC).
We've written an article to help guide you through what these changes may mean for your organisation.
Victoria: work from home laws start on 1 September
New Victorian laws giving employees a legal right to work from home are set to come into effect on 1 September 2026. Under changes announced by the Victorian Government, workers who can perform their role remotely will be entitled to work from home up to two days per week. To implement the new right, legislation will be introduced into the Victorian Parliament in July 2026, with the right formally added to the Equal Opportunity Act 2010 (Vic). Importantly, the work from home right will apply regardless of workplace size, marking an expansion of earlier proposals. However, there will be a delayed start for smaller organisations: workplaces with fewer than 15 employees will not be required to comply until 1 July 2027, allowing additional time to update policies and procedures. The new framework also includes a process to resolve disputes. If an issue arises, matters will first go to the Victorian Equal Opportunity and Human Rights Commission (VEOHRC) for conciliation. If unresolved, disputes may proceed to the Victorian Civil and Administrative Tribunal (VCAT) for determination.
Northern Territory: incorporated associations law reform
The Northern Territory Government is reviewing the Associations Act 2003 (NT) to ensure the legal framework for incorporated associations is fit for purpose and responsive to the needs of the not‑for‑profit sector. The review is considering potential reforms, including: - setting criteria to guide or require larger or more complex associations to transition to an ASIC‑regulated corporate structure
- expanding regulatory powers to support earlier and more proportionate intervention where issues arise
- reviewing fees and charges to enable sustainable, risk‑based regulation
- reassessing governance thresholds, such as minimum membership requirements
- clarifying rules around property ownership and land vesting for incorporated associations
As part of this process, the Department of Trade, Business and Asian Relations has sought feedback from incorporated associations and other stakeholders to help inform potential reforms to the Act. |
