UA welcomes the draft report’s proposed reforms to make the Deductible Gift Recipient (DGR1) system fairer and more consistent, and notes that the changes as outlined in Recommendation 6.1 to the DGR will not adversely impact the higher education sector. However, it is important that the Productivity Commission ensures that any changes to the DGR system and other tax laws to promote philanthropy are revisited regularly, as wider tax arrangements (e.g. on superannuation) change often. This will be critical to doubling philanthropy by 2030, and will allow universities to continue maximise the benefits of the donations they receive to support their world leading research.

UA also welcomes the establishment of an Aboriginal and Torres Strait Islander philanthropic foundation which will support Indigenous organisations and communities to have better access to philanthropic funding and tailor these funds to their needs.

Universities can help meet Government’s philanthropy targets

Philanthropy in Australia is not a new phenomenon, but it is not as significant in comparison to our international counterparts. In 2021, Australia’s philanthropic giving was 0.81 per cent of its GDP, while in the United Kingdom, Canada, New Zealand, and the United States philanthropic giving was respectively 0.96 per cent, 1 per cent, 1.84 per cent, and 2.1 per cent of GDP.

UA supports the Government’s commitment to double philanthropic giving by 2030, but also notes that increasing philanthropy as a share of GDP will take time. Universities are uniquely placed to help. The university sector and the communities it serves can play a critical role in supporting the Government’s efforts to double philanthropic giving by 2030 by equipping people with the right skillset and educating them about the benefits of philanthropy.