Distribution guidelines for ancillary funds

Treasury is accepting late submissions for this consultation up until Friday 20th May. Interested parties are invited to email their submissions to charitiesconsultation@treasury.gov.au.

This consultation process has now been completed.
Consultation Type
Consultation Paper

Key Documents

An ancillary fund is a trust set up and maintained solely for the purpose of providing money, property or benefits to deductible gift recipients (DGRs). Although an ancillary fund is also a DGR, it does not undertake charitable work. Instead, it acts as an intermediary between donors and DGRs that do undertake such work.

Ancillary funds encourage philanthropy by allowing donors to receive an upfront tax deduction for gifts that are distributed over time to other DGRs.

To ensure ancillary funds meet their philanthropic goal, guidelines made under the Taxation Administration Act 1953 require funds to (amongst other things):

  • make a minimum distribution each financial year to type 1 DGRs that undertake charitable work; and
  • restrict the transfer of assets between ancillary funds.

The consultation paper seeks feedback on proposals to provide greater flexibility to ancillary funds while preserving their philanthropic nature.


No submissions are currently available.