DGRs under review

1.

Requiring all DGRs to be registered as charities and regulated by the Australian Charities and Not-for-profits Commission (except government entities)

Would need to:

• lodge an Annual Information Statement;
• lodge annual financial reports (if a medium or large charity);
• adhere to ACNC governance standards or face revocation of registration (and DGR) status.

2.

Transferring the administration of the 4 DGR registers to the ATO

• Must first apply to the ACNC (rather than to the government agency which administers the relevant register);
• Must nominate for endorsement one of the general DGR categories (including the 4 DGR registers);
• Once approved by the ACNC, the ATO would then assess applications against the tax law to determine eligibility in respect of that DGR category;
• The whole process could be completed within a month.

3.

Removing the public fund requirement for DGRs that are charities

• Organisations would not need to set up separate public funds if they apply for multiple endorsements.

4.

Introducing a rolling program of regular review by the ACNC or the ATO, or both, of an organisation's DGR status

• DGRs would no longer be able to exist in perpetuity;
• They would be reviewed every 5 years by ACNC and ATO conducting an initial desk-top review, and further investigate any organisations identified as high risk;
• Specifically-listed DGRs would face a sunset period of no more than 5 years, after which they would need to reapply for endorsement;
• They would face revocation of the DGR status if the review found necessary grounds.

5.

Requiring DGRs to certify annually that they meet DGR eligibility requirements

• This would be completed as part of their Annual Information Statement;
• There would be penalties for false statements.