The Community Council of Australia (CCA) welcomes the proposed privacy reforms that will support a fairer and safer environment for Australians as we transition to a modern digital age. Australia’s charities and NFPs need equal assistance so that they can sustainably meet these important privacy requirements. The government can start by supporting our sector’s urgent digital, data governance and capacity uplift needs by providing greater investment towards the NFP Digital Futures co-funding initiative, and by extending the appropriate incentives, concession and programs afforded to small businesses to similar sized charities and NPFs.

The government should ensure the Trust Tax proposal does not add to the growing red tape,
compliance and administrative burdens facing our sector. Charities and NFPs are at the heart of our
communities, our productivity, our health and wellbeing, our disaster preparedness, response and
recovery. Our sector enables the generous and flourishing communities that Australia relies on.

The government must not wait to take the immediate and similar action it has taken to support small business to prioritise the urgent digital needs and safety concerns being faced by charities and not-for-profits.

CCA’s submission to Treasury says that imposing an upfront 30% tax on charitable distributions made by discretionary ‘family’ trusts (a Trust Tax) will have a significant and adverse impact on giving and funding to charities and community groups. The government should counterbalance these reforms by widening eligibility for DGR status, with other key measures, to prevent a reduction in charitable giving.