iscover Budget changes support case for charitable giving before 30 June
TaxAustralians considering charitable giving before the end of the financial year should not be deterred by the proposed tax changes, as they are unlikely to affect eligible charitable foundations, according to Australian Philanthropic Services.
The taxation changes proposed in the 2026–27 federal budget are unlikely to affect eligible charitable contribution deductions, according to Australian Philanthropic Services (APS) chief executive Judith Fiander.
“Although it is not clear, and will not be clear, until the political process around the various measures and what they mean for personal tax circumstances is complete, the advantage of tax deductible giving via a giving structure is you can make that gift now, and have that tax deduction at your disposal for as long as the next five years,” she said.
“When the tax arrangements become clearer, donors will be able to deploy that deduction in the most tax-efficient way.”
In this vein, contributing to a giving vehicle such as a private ancillary fund (PAF) or a public ancillary fund (PuAF) would help donors retain a degree of flexibility and certainty amid economic dynamism, especially for planning and longer-term projects.
Fiander said: “Structured philanthropy can support multi-year giving commitments and create sustainable revenue streams that help organisations make a greater impact.”
There is still time to make a charitable donation and gain a valuable tax deduction, and now is the time for people who have something to give to step forward, she continued.
“Every day is a good day for giving. But the days between now and June 30 are exceptional days for giving.”
APS encouraged greater awareness of the tax advantages of giving among high-net-worth Australians, with Australian Taxation Office data showing that around half of Australians earning more than $1 million annually claim no charitable donation deductions.
“That shows some people with the capacity to give are not, and that's a missed opportunity both for the community and for donors themselves,” Fiander said.
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Amelia is a Professional Services Journalist with Momentum Media, covering Lawyers Weekly, HR Leader, Accountants Daily and Accounting Times. She has a background in technical copy and arts and culture journalism, and enjoys screenwriting in her spare time.