A recent Productivity Commission inquiry report sets out draft proposals for reforming policies supporting Australian philanthropy.

In February 2023, the Australian government commissioned the Productivity Commission to undertake a wide-ranging inquiry to identify and assess reform opportunities to grow philanthropy. The Commission is an independent policy research and advisory body, and I was appointed as an associate commissioner for the inquiry, working alongside the Commission’s deputy chair, Alex Robson and commissioner Julie Abramson. At the end of November 2023, the inquiry’s draft report, Future foundations for giving, was released.

The draft report sets out a rationale for government support for philanthropy and a framework for assessing the different policy options for providing such support. It proposes a comprehensive overhaul of Australia’s ‘deductible gift recipient’ system, which determines which organisations are eligible to receive tax deductible donations, along with recommendations to bolster regulation, improve public information on charities and giving, and enhance access to philanthropy.

The inquiry’s scope includes individual giving and donations made through giving structures, as well as volunteering. It finds that donations of money are increasing, but the proportion of the population that gives is decreasing. A lot of the increase is driven by those on higher incomes. These trends are similar to those seen in other parts of the world.