Tax deductibility

Public consultation on External Conduct Standards

The Treasury is seeking submissions on draft regulations and an explanatory statement for proposed external conduct standards charities registered with the Australian Charities and Not for profits Commission (ACNC) will need to comply with when operating outside Australia.

The purpose of the standards is to ensure the public has confidence that an ACNC-registered charity has appropriate governance systems and processes in place to reasonably address risks that arise in their overseas activities. The proposed standards will be implemented through regulations under the Australian Charities and Not-for-profits Commission Act 2012 (the ACNC Act).

To review the proposed standards or to find out more about the consultation, visit the Treasury Consultation website.

Public consultation on Deductible Gift Recipient (DGR) reform

On 5 December 2017, the Government announced a package of reforms to the administration and oversight of entities with DGR status. These reforms will strengthen DGR governance arrangements, reduce administrative complexity and ensure appropriate oversight of entities with DGR status.

On 22 August 2018, Treasury released a consultation paper covering the following components of the proposed reforms:

  • the requirement for non-government organisations with DGR status to register as a charity with the ACNC from 1 July 2019
  • transition arrangements to support existing organisations with DGR status to register as a charity with the ACNC
  • the Commissioner of Taxation’s discretion to exempt organisations with DGR status from the requirement to register as a charity in limited circumstances
  • the abolition of certain public fund requirements.

The consultation paper is now available on the Treasury website. Submissions closed on 21 September 2018.

Overseas Aid Gift Deduction Scheme

The Overseas Aid Gift Deduction Scheme (OAGDS) enables Australian organisations to issue tax deductible receipts for donations to their overseas aid activities. These activities must be to support aid activities in countries that are declared as ‘developing’ by the Minister for Foreign Affairs. Members of the Australian community can then claim their donation as a tax deduction.

OAGDS is one part of the process for obtaining endorsement as a deductible gift recipient (DGR). The DGR process is managed by the Australian Taxation Office (ATO). For more information, visit the Australian Taxation Office website.

The OAGDS Eligibility Criteria contain conditions that organisations need to meet in order to be declared as an ‘approved organisation’ by the Minister for Foreign Affairs. The OAGDS Eligibility Criteria are available below.

Overseas Aid Gift Deduction Scheme - Eligibility Criteria [PDF 274 KB] | [DOCX 294 KB]

The OAGDS Guidelines will assist organisations to understand the new OAGDS Eligibility Criteria and application process, as well as the details and supporting evidence organisations can submit for each OAGDS Eligibility Criteria. The new OAGDS Guidelines are available below.

Overseas Aid Gift Deduction Scheme - Guidelines [PDF 384 KB] | [DOCX 368 KB]

The OAGDS Frequently Asked Questions provide organisations with additional information on the process to be approved under the scheme. The OAGDS Frequently Asked Questions are available below.

Overseas Aid Gift Deduction Scheme - Frequently Asked Questions [PDF 293 KB] | [DOCX 272 KB]

All applications will be assessed under the OAGDS Eligibility Criteria and Guidelines. Please review these documents prior to commencing an application. The Eligibility Criteria include the following pre-eligibility requirements.

To be eligible to apply for OAGDS the organisation applying must:

  • have a voluntary governing body, and
  • be a registered charity with the Australian Charities and Not-for-profits Commission (ACNC) and conform to the ACNC Governance Standards.

The OAGDS online application system is available online. Organisations are able to provide details and supporting evidence that addresses the OAGDS Eligibility Criteria in the Application Form after registering in the system. The Application Form and supporting documentation will be used for assessment purposes. A preview of the OAGDS application form is available below without registering in the system.

Preview of OAGDS Application Form [PDF 244 KB]

The OAGDS online application system can be accessed through the link below:

OAGDS online application system

Contact information

Should you require assistance or have any questions, please contact us by logging into the online application system and submitting an enquiry through the link below or by email on the address below. If you would like to speak with a member of the OAGDS administration team please indicate this in your email, requesting a telephone appointment. Please note that due to current high workload, there may be some delay in replying to your email.

Email: oagds@dfat.gov.au

Online application system: OAGDS online application system enquiry

Last Updated: 28 September 2018