The tax law has been amended, so that from 14 December 2021 all non-government deductible gift recipients (DGRs) will need to register as a charity. This amendment does not apply to ancillary funds or DGRs specifically listed in tax law.

These organisations are now required to register as a charity through the Australian Charities and Not-for-profits Commission (ACNC). These changes apply to organisations who already have DGR status, anyone with an application currently being considered by the Register of Cultural Organisations (ROCO), and anyone applying to be registered on the ROCO in the future.

If your DGR is not already a registered charity, you will need to take steps to register with the Australian Charities and Not-for-profits Commission (ACNC).

Transitional arrangements are available to provide you with additional time to meet the new requirements. Check if your organisation is eligible for the following transitional periods:

• a 12-month transitional period to become a registered charity
• an additional three-year extension by application.

DGRs operated by local government entities are not required to register as charities. This is because the ATO would generally consider them to be Australian government agencies and excluded from the new requirements. If your organisational DGR is run by a Foundation or Friends of the Gallery/Museum group, you/they may need to register as a charity.

You can find out more information about the legislative changes from the ATO here, or find out more detail in the Explanation of terms | Australian Taxation Office (ato.gov.au)

For clarification or queries on any of this, please contact the Not-for-profit Premium Advice Service on 1300 130 248 between 8.00am and 6.00pm, Monday to Friday. Alternatively, questions can be directed by email to atoendorsements@ato.gov.au