ACNC’s proposed changes to ‘Public Benevolent Institution' status and it’s impact on charities
We are encouraging organisations to make submissions to the ACNC by 5pm 20th March.
On 13th March 2025, Rainbow Giving Australia, Equality Australia and Stronger Charities Alliance hosted a community briefing with 50+ representatives from across the charity sector on ACNC's proposed changes to Public Benevolent Institution (PBI) status following the Federal Court's decision on Equality Australia.
Thank you to those that shared their insights at the session:
Anna Brown, CEO, Equality Australia
Cat Fay, Director, and Em Scott, CEO, Rainbow Giving Australia
Jessie‑Grace Stephenson, Lawyer, Gilbert + Tobin
Krystian Seibert, Executive Director, Philanthropy Australia and former Commissioner for Productivity Commission into Philanthropy
Samantha Loff, Herbert Smith Freehills
Hassan Mirbahar, Stronger Charities Alliance
In 2024, the Federal Court upheld the ACNC’s decision to deny Equality Australia’s application for PBI charity status, which is required for Deductible Gift Recipient (DGR) status—a key enabler for charities to receive tax-deductible donations.
PBI is a subtype of charity classification that provides automatic access to DGR. PBI is not defined in the legislation and the meaning has changed over time as case law develops, creating uncertainty and inconsistency.
To be eligible, the organisation must demonstrate it is organised to relieve distress of a group in need of benevolence. The Equality Australia case relates to the question of how connected the activities of the organisation must be to its benevolent purposes to qualify for PBI status.
In the Equality Australia case, while the Tribunal didn’t rule out advocacy as a valid means of relief, the majority found that in this case there was not a ‘sufficiency of connection’ between the activities and the benevolent ends pursued, even though there was a ‘logical connection’. The Full Federal Court upheld the decision.
This decision is now binding on ACNC. However, the decision lacks clarity on what would constitute a “sufficient connection” generally and specifically in the context of advocacy.
This ruling highlights an unfair and outdated DGR system that is unnecessarily complex and restrictive, and has a disproportionate impact on community-run charities including advocacy charities focused on addressing the causes of disadvantage and charities supporting LGBTQIA+ Australians.
The Productivity Commission’s inquiry into philanthropy found that the DGR system is flawed and needs an overhaul, to expand eligibility and simplify processes.
We are encouraging organisations to make a submission to ACNC by 20th March, asking to:
Simplify and modernise the meaning of PBI, in line with the ordinary meaning of benevolence, that provides more organisations with access to DGR.
Clearly recognise advocacy as a legitimate form of benevolent relief.
See more here: https://www.acnc.gov.au/media/news/public-consultation-public-benevolent-institution-documents
Submissions are due Thursday 20th March 5pm.
If you would like to sign on to Rainbow Giving Australia's submission, please contact em@rainbowgiving.org.au.
