As we welcome a new financial year, we shine a spotlight on key updates and events in the charity, not-for-profit (NFP) and social sector, with reminders from the Australian Charities and Not-for-profits Commission (ACNC), Treasury and the Australian Taxation Office (ATO).
We also feature our article Major overhaul of Australian merger laws: what charities and not-for-profits need to know. We discuss changes to the merger control regime, which will take effect from 1 January 2026, with a voluntary notification window having commenced on 1 July 2025.
Research and resources
Major overhaul of Australian merger laws: what charities and not-for-profits need to know
The Treasury Laws Amendment (Mergers and Acquisitions Reform) Act 2024 (Cth) introduces a mandatory and suspensory merger notification system which fundamentally changes the mergers, acquisitions and asset transfers landscape in Australia.
While small scale merger and acquisition activity amongst charities and NFPs (or even between for-profits and charities) may be unlikely to be captured by the new regime, it is nevertheless essential for organisations to actively consider the new requirements and assess whether the relevant transaction will be captured.
With mandatory notification, significant penalties for non-compliance, and a focus on both competition and public benefit, charities and NFPs undertaking larger scale or frequent mergers and acquisitions must ensure they are fully prepared for the new landscape. While the changes take effect from 1 January 2026, a voluntary notification window commenced on 1 July 2025.
Our feature article delves into the upcoming changes and provides guidance and practical steps to help ensure organisations comply with the new merger regime. If you wish to discuss how the merger reforms may affect your organisation, please do not hesitate to reach out to your expert advisers in the Charities and social sector group and Competition, Consumer and Market Regulation group.
Read our article: Major overhaul of Australian merger laws: what charities and not-for-profits need to know - we unpack the upcoming changes and share practical steps to help your organisation prepare.
ACNC has released an updated Equality Australia Decision Impact Statement
On 5 September 2024, the Full Court of the Federal Court of Australia handed down its judgment dismissing an appeal by Equality Australia Ltd against the Administrative Appeals Tribunal’s (AAT) decision regarding the organisation’s eligibility to be registered as a public benevolent institution (PBI).
This important case considered whether an organisation, with a goal of changing laws and social practices injurious to LGBTQI+ persons, is eligible to be PBI.
Following public consultation earlier this year on a draft Decision Impact Statement regarding the Equality Australia case, the ACNC released an updated Decision Impact Statement on 7 July 2025.
A Decision Impact Statement is written by the ACNC for charities, advisers and the public, and is designed to advise the sector about the ACNC’s view of the implications of court or tribunal decisions where the ACNC is a party. It provides insights into how the ACNC views the decision and how it will apply the decision moving forward.
The updated ACNC Decision Impact Statement on the Equality Australia case provides some insights into how the ACNC will assess PBI applications from organisations predominantly organised to address benevolent need through a program of advocacy, education and campaigning to achieve law reform and social change. The ACNC stresses it will undertake a holistic consideration of the purpose and activities of such an organisation, and the nature of the benevolent need – to assess whether there is a sufficient connection between the organisation’s activities and benevolent purposes. A mere ‘logical connection’ will not necessarily be sufficient.
Read the updated ACNC Decision Impact Statement: Equality Australia Ltd.
ACPNS analysis of ATO data on tax deductible giving and ancillary funds
Following the ATO’s recent release of its Taxation Statistics Report for 2022-23, the Australian Centre for Philanthropy and Nonprofit Studies (ACPNS) at the Queensland University of Technology has analysed the data and found the total amount donated and claimed as tax-deductible donations in 2022–23 financial year was $9.10 billion. This constitutes a 99.96 per cent increase or an additional $4.5 billion in donations as compared to the previous financial year.
The ACPNS also reviewed the activities of ancillary funds and found an overall steady increase in donations received, distributions made and net assets. In total, as at 30 June 2023, there were 3,641 ancillary funds with combined net assets of $15.37 billion. These funds received $3.18 billion in donations in the 2022–23 year and distributed $1.29 billion in grants.
You can read more and access the ACPNS Tax-Deductible Giving in 2022-23 and Ancillary Funds 2022-23 information sheets.
ATO guidance on updating NFP details
Having your organisation’s details up to date with regulators helps ensure better management of your organisation’s reporting and regulatory compliance obligations. As we move into a new financial year, organisations are encouraged to do a general clean-up of their records, including updating their ABN details (including directors, public officer, trustees and contact persons) with the Australian Business Register and authorisation details in the Relationship Authorisation Manager.
You can read more and access the ATO’s guidance by visiting ATO – Avoid these pitfalls when updating NFP details.
Announcements and reminders
Public consultation on giving fund reforms
On 5 December 2024, the Government announced it would improve the support provided to charities through ‘giving funds’ (currently described in tax law as ancillary funds) by:
aligning and increasing the minimum annual distribution rate for public and private ancillary funds;
allowing funds to smooth their minimum annual distributions over three years; and
renaming ancillary funds in the tax law to ‘giving funds’ to reflect their role in giving to deductible gift recipient (DGR) endorsed charities.
Treasury is inviting feedback on the proposed changes described above. The consultation paper outlines how a higher distribution rate will affect funds and charities, and describes the principles for smoothing distributions.
Consultation is open until 1 August 2025, visit Treasury – Giving fund reforms: distribution rate and smoothing.
Upcoming events and webinars
CLAANZ Annual Conference
The upcoming Charity Law Association of Australia and New Zealand (CLAANZ) Annual Conference will explore current issues in charity law. Topics covered include governance, accumulations and reserves, regulatory approaches, complex charitable structures, current issues in social housing, managing privacy reforms, AI issues, cy-près / judicial advice applications and cross-jurisdictional charity cases. Professor Matthew Harding, the conference’s keynote speaker, will consider the topic ‘Reimagining Charity Law’.
Dates: Monday 28 July to Tuesday 29 July 2025.
Time: Commences after lunch on Monday and continues with a full day on Tuesday.
Location: Victorian Bar, Owen Dixon Chambers East, Level 5, 205 William Street, Melbourne and online.
Cost: $200 for members and $400 for non-members. Concession and online rates also available. Please confirm details on the CLAANZ website to determine the ticket and pricing option that is best for you.
Our very own Darren Fittler will be speaking on a panel to discuss current issues in social and affordable housing. Elizabeth Lathlean will be speaking on a panel to discuss accumulations and reserves.
For more details and to register, visit 2025 CLAANZ Annual Conference and AGM.
ACNC Governing for Good Forum
The ACNC Governing for Good Forum (previously known as the ACNC Regulators Day) will bring together charities, government agencies, sector representatives, charity law and accounting professionals and advisers to reflect on the sector's regulatory developments and explore the regulatory landscape.
Date: Wednesday 30 July 2025 (the day after the CLAANZ Annual Conference).
Time: 10am to 3.30pm.
Location: Online and The Event Centre, Tower 2, Level 5, 727 Collins Square, Docklands.
Cost: Free (registration for in-person attendance is now closed, with registration for online attendance open until 28 July 2025).
For more details and to register, visit the event page.
We acknowledge and pay respect to the custodians of the lands upon which our offices are located – the Gadigal people (Sydney), the Wurundjeri Woi-wurrung people (Melbourne) and the Whadjuk Nyoongar people (Perth), as well as all custodians across this nation.
We also recognise the continuing contribution Indigenous charities, not-for-profit organisations and their supporters, together with all First Nations Peoples, provide in addressing the unique systemic disadvantages arising from historical, societal and structural inequalities. It is an honour and a privilege to support this important work and we thank our First Nations clients, partners and friends for their generosity in sharing their knowledge, culture and experiences with us.