The report sets out the Commission’s findings and recommendations to provide firm foundations for philanthropy in Australia, so that the benefits of giving can continue to be realised into the future.

Over $13 billion was donated to charities in Australia in 2021 and 6 million people volunteered in 2022. In real terms, the Productivity Commission expects giving to increase by $6.4 billion or 48% by 2030.

This once-in-a-generation inquiry comes at a key point in time. While the Australian Government has a goal to double giving by 2030, some of the most important policy settings that would underpin such an increase are not fit for purpose. This report therefore focuses on reforms to build firmer foundations for philanthropy in Australia, so that the benefits of giving can continue to be realised into the future.

The reforms proposed in this report focus on four main areas: improving the system that determines which charities have access to tax-deductible donations; improving access to philanthropic networks for Aboriginal and Torres Strait Islander people; enhancing the regulatory framework for charities and ancillary funds; and improving public information on charities and donations.

The Commission developed a framework to assess where there is a role for government to support philanthropy and where policy changes are needed. This assessment was based on the expected benefits and costs to the community of different forms of government involvement in philanthropy.

Key points

• The deductible gift recipient (DGR) system is not fit for purpose and should be reformed.
• An independent organisation should be established to strengthen relationships between Aboriginal and Torres Strait Islander organisations and philanthropic networks.
• Reforms are needed to enhance the regulatory framework for charities and to support high levels of public trust and confidence in charities now and into the future.