Pre-Budget pitch calls for new investment in NFPs and charities

The peak body for charities and not-for-profits, the Community Council for Australia (CCA), makes the point in its pre-Budget submission to the Albanese government, which is due to present its second-term Budget in May.

The CCA lays out a 10-point plan and argues those measures “will significantly strengthen Australia’s not-for-profit (NFP) sector to support our communities and drive real economic savings”.

The organisation argues that the sector is an essential part of national infrastructure, encompassing more than 600,000 organisations, contributing eight per cent of GDP and employing over 1.5 million Australians.

The CCA says the sector faces a storm of rising demand, higher costs, workforce pressure, declining volunteering and under-investment in organisational capacity, cybersecurity and climate adaptation.

It says more than 160 reform recommendations have been made over three decades, yet only a small fraction have been implemented, and the sector needs greater certainty in government funding, better regulation, reduced barriers to capital and greater support for giving to enable greater sector productivity, at a time when the need for its services has never been greater.

The prospect of an intergenerational wealth transfer worth trillions is just one of the opportunities to unlock philanthropy, modernise regulation and strengthen sector resilience, the CCA submission argues.

The CCA proposes 10 priority budget measures:

1. Extend Deductible Gift Recipient (DGR) status to most registered charities

1. Create stronger incentives for philanthropic donations via intergenerational wealth transfer across trusts, workplace giving and superannuation

1. Fix fundraising regulations

1. Introduce “pay what it takes” government funding covering the full cost of service delivery

1. Create a new $300 million charities transformation fund targeting cybersecurity, workforce and digital capability

1. Create a $500 million charities investment fund to provide low-interest loans and credit

1. Establish a charities and not-for-profits ombudsman

1. Support sector research into charities and their workforce and funding arrangements

1. Introduce an estate duty for those with estates worth more than $10 million

1. Review gaming tax concessions to licensed clubs and other mutual organisations.

The CCA argues these measures would improve productivity, reduce long-term government costs and strengthen economic and social resilience. It concludes that increased philanthropy and impact investment should be viewed as a public benefit, not foregone revenue, and that a fairer, more strategic Budget must recognise the scale, contribution and potential of Australia’s charities and NFP sector.

“Supporting the proposals in this submission will ensure the government receives a better return on investments, strengthens communities, improves wellbeing, builds connectedness and resilience, and increases productivity for all Australians,” the CCA said.

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More information

Read the CCA submission in full