Seminar : Tues. 13 July 2010 - Understanding the basics of DGR tax law 

This seminar is designed to provide community organisations with basic legal information about the Deductible Gift Recipient (DGR) tax status.  Tax lawyers from Blake Dawson will address common questions about how to apply for and maintain your DGR tax status as a not-for-profit organisation, including:

• What are the basic features of DGR and how might your organisation benefit from being endorsed as a DGR?
• What are the main categories of DGR?
• Is your organisation likely to fit into a DGR category?
• What should your organisation know before starting the DGR application process?
• What does applying for DGR involve?
• How can your organisation maintain its status as a DGR once it is granted?

This seminar will be generously hosted by lawyers from Blake Dawson.

Date:                   Tuesday, 13 July 2010
Time:                   9.30am to 12.30pm (registrations from 9.15am)
Venue:                 Blake Dawson Lawyers: Level 26, 181 William St, Melbourne
Cost:                   $40 (incl. GST) administration fee per person
Refreshments:      Light refreshments will be provided for morning tea

Registrations for this seminar are now open. To register, please visit:

July : Morwell and Sale

In 2010 PilchConnect and the VCOSS Clearinghouse are working together to bring not-for-profit governance training to regional Victoria, running a program entitled ‘Board Members: Roles, Responsibilities, Liabilities and Protections'.

This 'back to basics' training is suitable for new not-for-profit board/committee of management members - or existing NFP boards or committees that are seeking a refresher on their roles and legal responsibilities that come with helping to run an effective community organisation in Victoria.  Attendees will work in small groups on practical, hypothetical scenarios which are common to many community organisations. We encourage multiple board members to attend this seminar.

Morwell: 20 July 2024
Time:                     11.00am to 2.30pm
Venue:                   Lifeline - 2 Fleming St, Morwell, Vic
Presenter:              PilchConnect Staff
Cost:                     $40 (incl. GST) administration fee per person
Refreshments:        Light refreshments will be provided for morning tea

Sale: 21 July 2024
Time:                    9.00am-12.00pm
Venue:                  To be confirmed
Presenter:              PilchConnect Staff
Cost:                     $40 (incl. GST) administration fee per person
Refreshments:        Light refreshments will be provided for morning tea

To register, or for further information and details of other not-for-profit community training throughout regional Victoria in 2010, please visit the VCOSS Clearinghouse website below.

Changes to incorporated associations introduced into Victorian Parliament

In our last e-bulletin (May 2010) we advised of the Victorian Government's intention to introduce significant changes to the Associations Incorporation Act 1981 - the legislation that regulates the way incorporated associations operate in Victoria.

On 25 May 2010, the Victorian Government introduced the Associations Incorporation Amendment Bill 2010 into the Victorian Parliament, which proposes significant changes, including:

• reform of the governance arrangements for incorporated associations, including duties of committee members;
• changes to the annual reporting requirements and audit thresholds;
• removal of the limitations on trading;
• changes to grievance and dispute resolution procedures;
• amendments to winding up and external administration; and
• the introduction of new matters that must be addressed in an organisation's Rules.

The Bill is only being considered by Parliament and so the proposed changes are not yet in force as law.

PilchConnect welcomes many of the proposed reforms, however we are disappointed that issues we had raised in our submission on a draft version of the Bill have not been fully addressed.  One of our key concerns was in relation to the complexity of the drafting of the proposed changes, which creates a risk that the Act may not be able to be properly understood and applied without the assistance of a lawyer – something that many community organisations can simply not afford.  PilchConnect's submission to the consultation is available on our web page dedicated to  Law Reform and Advocacy. 

PilchConnect has produced a page on our website to provide further information about these reforms, and how they may affect community organisations if they are passed by Parliament.  For further details, see our page on   Proposed changes for Victorian incorporated associations in 2010.

Review of Model Rules for Victorian incorporated associations

As part of the abovementioned reforms, the Victorian Government is looking to review and update the Model Rules for incorporated associations. The aim will be to ensure the Model Rules take into account the proposed changes to the Act (see above). PilchConnect have also been campaigning to ensure that any review of the Model Rules includes a plain-language re-write.

PilchConnect is involved in this process and we are happy to hear from community organisations interested in finding out more about the changes to the Model Rules.  We will also keep Victorian associations updated about the changes via this monthly e-bulletin.

Proposed reforms affecting companies limited by guarantee 

On 26 May 2024 the Federal Government introduced the Corporations Amendment (Corporate Reporting Reform) Bill 2010 into Parliament.  The Bill, if passed by Parliament, will amend the current reporting requirements for companies limited by guarantee (CLGs) by introducing a three-tiered reporting regime for CLGs based on their annual revenue. 

We understand that, if passed by Commonwealth Parliament, the provisions relating to the new reporting regime will commence upon assent (which may be as early as July 2010).  We will keep updating not-for-profit CLGs on the passage of this legislation via this e-bulletin. 

PilchConnect made a submission to the proposed reforms in February this year and also published information on our website which included details about the proposed changes.  This page is available on the  PilchConnect website.

Senate inquiry into a ‘public benefit' test for religous / charitable organisations

The Commonwealth Senate Economics Committee is currently undertaking an inquiry into Australia's tax laws which, if adopted, would require religious and charitable organisations to satisfy a 'public benefit' test before being entitled to tax concessions or exemptions.  The Inquiry is taking place in response to concerns raised by certain Senators about the tax deductibility of some organisations currently classified as religious institutions. 

A 'public benefit' test is currently in place within other jurisdictions, including England and Wales where, in 2006, legislation was passed which requires that a charity's purpose must be for the public benefit.  This test is applied in the UK by the Charity Commission, an independent regulator for the charitable sector.

Submissions to the Senate Inquiry must be received by 18 June 2010, and the final report is expected to be released at the end of August.   Further details on the Inquiry are available on the  Senate website.

Native Title, Indigenous Economic Development and Tax

On 18 May 2010, the Federal Government released a consultation paper titled Native Title, Indigenous Economic Development and Tax.  This consultation paper discusses the interaction between Australia's tax system and Indigenous issues, and sets out possible opportunities for reform.  The consultation paper also examines whether existing tax exemption structures, such as Deductible Gift Recipient (DGR) categories, could be altered to better reflect the needs of Indigenous community groups.

The consultation paper also discusses whether a new general DGR category which that would focus on indigenous organisations that carry out activities across multiple DGR categories.

The closing date for submissions to the consultation is 2 July 2010.  Further information on the consultation paper can be found on the  Treasury website.

Community organisations with overseas aid objectives (Overseas Aid Funds)

Community organisations that have overseas aid objectives face additional obligations when applying for tax concessions and Deductible Gift Recipient (DGR) status. A new PilchConnect fact sheet is now available which looks at obligations placed on community organisations with overseas objectives throughout this process.

This latest publication add to the growing amount of free legal information and resources available for not-for-profit community groups through the PilchConnect web portal.

The ‘Overseas Aid Fund' fact sheet is now available for download from the PilchConnect website by following the below link:

Not-for-profits with overseas activities – applying for tax deductibility

Applying for tax deductibility as an organisation with overseas activities can be a difficult and time consuming task.  According to AusAID, assessing applications for 'approved organisation' status usually takes between 3 - 6 months, although this can take longer if AusAID requires further information from applicants. After this process, the approved organisation needs to then establish a public fund for the relief of people in developing countries in order to qualify for tax deductibility.

This two-stage process takes a long time (at least 9 to 12 months), and before even making an application, your organisation must demonstrate a track record of activities for at least 1 (preferably 2) years prior.

So that your organisation has the best chance of a successful application and does not invest too much time and energy into an application without prospects of success, you should talk to AusAID before applying.  This is particularly important in relation to the nature of your organisation’s overseas activities, as to be an approved organisation your activities must focus on ‘development' or 'relief' work - this is different to 'welfare' work. 

For further information and tips on applying for tax deductibility as a not-for-profit group with overseas aid activities, see our web page dedicated to Deductible Gift Recipient (DGR) issues and our recently released fact sheet on Overseas Aid Funds below:

The Australian Centre for Philanthropy and Nonprofit Studies (Queensland University of Technology) has recently released the Australian Nonprofit Sector Legal Almanac for 2009.  

The Almanac has been edited by Professor Myles McGregor-Lowndes, and provides a terrific summary of the key developments in the not-for-profit sector throughout the year, including case notes of significant legal decisions and policy reforms.   

The Almanac is available free online from the Queensland University of Technology website below.  We also have a limited number of hard copies, so please contact us at  connect@pilch.org.au if your organisation would like a free hard copy of the Almanac.

PilchConnect is currently piloting a telephone legal advice service for Victorian, not-for-profit community organisations.  This free telephone service is available for once-off legal advice on a limited range of legal issues. Further details about eligibility criteria for the advice service are available at www.pilch.org.au/TAS.

For more information about the telephone advice service, or to make a legal inquiry on behalf of your organisation, please call us on  8636 4444 or  1800 706 220. Our legal volunteers will answer your initial inquiry and, if eligible, a PilchConnect lawyer will call you back.

The telephone advice service complements existing legal support services already provided by PilchConnect, including:

• PilchConnect's legal information web portal (see www.pilch.org.au/legal_info)
• PilchConnect's legal referral service (see www.pilch.org.au/pcguidelines)
• PilchConnect's ongoing training program (see www.pilch.org.au/nfpseminars)
• PilchConnect's law reform and advocacy work (see www.pilch.org.au)

PilchConnect is a specialist legal service which has been set up to provide legal help to Victorian, not-for-profit community organisations.

The service provides free and low cost legal information, training, advice and legal referrals for Victorian not-for-profit community organisations. We also undertake law reform and advocacy work about the wide range of legal issues that affect the not-for-profit sector.

If you would like to subscribe or unsubscribe to this e-bulletin please email  connect@pilch.org.au.

If you would like to contribute to, or provide feedback about this e-bulletin, please email
  connect@pilch.org.au.

To find out more about the legal services we provide, see: