In 2015, a group of young Australians had a simple yet ambitious vision: to use hospitality to change lives. They believed that something as universal as sharing a meal could also build a stronger community.
A decade later, that vision has made a real difference - Stepping Stone Café, located in my electorate of Fenner in the ACT, has helped over 60 migrant and refugee women to participate in meaningful work. Last April, I recognised the café as my monthly 'community champion' for its contribution to inclusion and opportunity, and on Australia Day 2025, its founders, Vanessa Brettell and Hannah Costello, were named Australian of the Year Local Heroes.
Their philosophy is simple: participation strengthens society. 'We dream of a society where diversity is celebrated, where all people are empowered and able to live the lives that they choose,' Hannah said upon receiving the award. By breaking bread together, newcomers and locals don't just share food - they build community, foster belonging, and strengthen democracy itself.
It is initiatives like Stepping Stone Café that our government seeks to support - not just because their work is virtuous, but because when charities thrive, democracy thrives.
That's why our focus has been strengthening the operating environment for charities and not‑for‑profits, so they can all do what they do best - serve communities. We have made significant progress and the path to a stronger sector is clearer than ever.
When the Albanese government took office in 2022, the charities sector was facing serious challenges after the Coalition's nine‑year war on charities. Charities were being tied in knots by outdated, inconsistent fundraising laws, spending time on compliance that could be spent helping people. They needed a government that saw them as partners, not just service providers. Across society, we saw that charitable donations were up, but fewer people were giving - a worrying trend and a long‑term risk to our culture of generosity and equality of opportunity.
We've tackled this by cutting excessive paperwork, aiming to double philanthropy by 2030, and strengthening social capital through community engagement. Our reforms aren't about just one big fix, but about laying the foundations for lasting change. Each step we have taken strengthens the path towards a more connected, generous, and fair Australia.
A giving nation: doubling philanthropy by 2030
Giving in Australia has been too dependent on too few people. We need to broaden the base, not just by increasing donations from existing philanthropists but by encouraging more Australians to give. We committed to doing this as a partner, working alongside businesses, non‑profits and philanthropists.
That's why we commissioned the Productivity Commission's review into philanthropy, Future Foundations for Giving, released at the end of 2024, and are considering its findings. Anticipating some of the Commission's final recommendations, we've taken practical steps to build a systematic culture of giving.
In addition, since coming into government, we have introduced a new deductible gift recipient (DGR) category for community foundations to support place‑based and community‑driven giving. We have streamlined the DGR application process for environmental organisations, harm prevention charities, cultural organisations and overseas aid organisations. And we have reformed the tax deductibility of donations, including removing the $2 minimum for tax‑deductible claims to encourage small donations, such as rounding up purchases at the checkout.
More impact, less paperwork
For years, charities called for fundraising reform, stuck navigating outdated, inconsistent state laws designed for an era of street collections, not digital donations. A Senate committee, chaired by Catryna Bilyk, put the compliance cost at over $1 million a month - money better spent in communities.
In February 2023, we worked with state and territory governments to introduce national fundraising principles and streamline regulations. Once fully implemented nationwide, this will mean charities can fundraise under a single, modern set of national principles, without the unnecessary paperwork that's held them back for years.
Our government has also acted to strengthen trust and transparency in the charity sector. We passed legislation empowering the Australian Charities and Not‑for‑profits Commission (ACNC) to publicly address harmful breaches of compliance, ensuring Australians can have confidence in the system. We appointed Sue Woodward, a highly regarded expert, as head of the ACNC to provide the sector with strong, informed leadership. And to better represent the voices charities serve, we refreshed the ACNC Advisory Board, bringing First Nations, CALD and youth perspectives to the table.
Rebuilding social capital
In an era of rising disconnection, the work of charities in building communities has never been more vital.
We're making volunteering easier and more accessible. Last year, we funded the General Social Survey to provide better data on volunteering and social cohesion, which will help charities plan their work and target beneficiaries, by providing new questions on participation in volunteering and involvement in cultural events and activities. This builds on our 2023 initiative to connect 5,000 young people with volunteering opportunities.
To build social capital and trust, charities must have the freedom to bring people together, take action, and advocate for their interests. We have sent a clear signal that charitable advocacy is supported and welcomed by this government by removing restrictive gag clauses, ensuring charities can shape policy to suit the needs of their communities.
Strengthening our social fabric, one step at a time
Stepping Stone Café creates change by providing a supportive, enabling environment for refugee and migrant women. government plays a similar role. Our job is to create the conditions in which charities and not‑for‑profits can thrive, one connection and reform at a time.
Stepping Stone Café's impact grows meal by meal, connection by connection. We've taken a plethora of practical steps to create a better operating environment for not‑for‑profits - to remove barriers to fundraising, boost philanthropy and strengthen community engagement.
Our reforms aren't about just one big fix, but about laying the foundations for lasting change. Each step we have taken strengthens the path towards a more connected, generous, and fair Australia.
In the year ahead, we will build on this momentum, continuing to work with the sector to unlock new opportunities for giving, volunteering, community participation, and building the 4 key pillars that the Productivity Commission inquiry identified.
This cannot be done by government alone. We want to go far on this path, and charities, businesses, and individuals must go together with government to make giving a habit, volunteering a priority, and participation a cornerstone of our democracy.
