The Albanese Government is delivering on its commitment to strengthen Australia's philanthropic sector through historic reforms to support community foundations.
Community foundations pool donations from individuals, businesses and institutions to fund local initiatives and address community needs. A community foundation operates as a permanent, independent trust, investing funds to generate ongoing grants for charities and grassroots projects within a specific region.
With the publication of the Taxation Administration (Community Charity) Guidelines 2025, our new pathway to deductible gift recipient status for these community based charities is now established.
By fostering local giving and collaboration, community foundations strengthen social cohesion and drive long‑term, place‑based change.
Community foundations are located across Australia, in regions including Bass Coast, Geelong, Mackay, Alice Springs, the Eyre Peninsula, Albany and Fremantle. Community foundations support a wide range of initiatives, including education, mental health, social inclusion, environmental sustainability and disaster recovery.
Prior to this reform, community foundations have faced barriers attracting donations from private ancillary funds, which are used by individuals and families for private giving. Community foundations have also been constrained from directly supporting community groups that don't have deductible gift recipient status.
The Community Charity Guidelines were developed in close consultation with the charitable sector. Community Foundations Australia Chair, Ben Rodgers, has said of the new guidelines:
'The implementation of this reform brings more than 20 years of sector‑wide advocacy to a successful close, creating a new and better tax and regulatory framework for community foundations, in recognition of the vital role they play building thriving communities across Australia.'
Philanthropy Australia's Chair, Maree Sidey, has said:
'It's vital that our policy and regulatory environment empowers people to give … these reforms remove big roadblocks, helping unlock the flow of more resources to important community initiatives,'
Labor's support for community foundations is part of our goal to double philanthropic giving by 2030. We know that when charities thrive, communities thrive - and these reforms will provide a significant boost to the sector.
This reform reflects the Albanese Government's commitment to fostering a robust charity sector and more resilient communities. It builds on our achievements to date. Since coming into government, the Australian Government has:
- Improved the deductible gift recipient system by creating a new pathway for community foundations to access tax deductible status.
- Streamlined the deductible gift recipient application process for environmental organisations, harm prevention charities, cultural organisations, and overseas aid organisations.
- Introduced legislation to give the Australian Charities and Not‑for‑profits Commission greater discretion to comment publicly on harmful breaches of compliance, to better support public trust and confidence in the regulatory framework.
- Appointed a widely respected charity sector expert, Sue Woodward, to head the Australian Charities and Not‑for‑profits Commission.
- Refreshed the Australian Charities and Not‑for‑profits Commission Advisory Board to be more representative of the charity sector, bringing First Nations, CALD and youth voices onto the Board.
- Sent a clear signal that charitable advocacy is supported and welcomed by this government.
- Funded a new General Social Survey with new questions on participation in volunteering and involvement in cultural events and cultural activities, and providing insights reflecting the impact of giving, participation, and purpose driven activity.
- Worked with state and territory governments to streamline and harmonise charitable fundraising rules across jurisdictions.
- Appointed representatives from all states and territories to the advisory board of the Australian Charities and Not‑for‑profits Commission
Our government is proud to work alongside the charitable sector to create a stronger, more generous Australia.
Quotes attributable to Assistant Minister for Charities, Dr Andrew Leigh MP
"These reforms will make it easier for people to support charitable foundations in their local area."
"The Australian Government has set a target of doubling philanthropic giving by 2030, and this announcement is an important step towards that goal."
"By reducing the paperwork burden and expanding eligibility for tax‑deductible donations, the Albanese Government is ensuring that more money flows to charities that are making a real difference in people's lives."
