Bill for new DGR category for Community Sheds now law

   September 2020   |  News   |  Jae Yang

UPDATE: The proposed Bill introducing a new Deductible Gift Recipient (DGR) category for Community Sheds which we wrote about in June 2020 (below) has received Royal Assent on 3 September 2020 after passing both Houses on 25 August.  The DGR category of Community Sheds now exists as Item 1.1.9 of the DGR table.

If you would like to discuss this, please do not hesitate to contact Jae Yang at (02) 9466 5222 or at jyang@prolegis.com.au or Seak-King Huang at (03) 8672 2922 or shuang@prolegis.com.au

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A Bill to implement a new Deductible Gift Recipient (DGR) category for Community Sheds has recently been introduced by the Australian Government. This new category implements the Australian Government’s announcement in its 2019-20 Budget that a new DGR general category would be created to enable Men’s Sheds and Women’s Sheds to access the DGR endorsement.

Schedule 5 of the Treasury Laws Amendment (2020 Measures No. 2) Bill 2020 provides for the relevant amendments to the Income Tax Assessment Act 1997 (Cth) to implement the new DGR category, and confirms that the new DGR category for Community Sheds will apply to gifts or contributions made on or after 1 July 2020.

This new DGR category for Community Sheds is open to any public institution whose dominant purposes are to advance mental health and prevent or relieve social isolation and which seeks to achieve those purposes principally by providing a physical location where it supports individuals to undertake activities, or work on projects, in the company of others.  It will also be necessary that the institution’s membership is open (no criteria) or to have only gender or Indigenous status as the criteria.

It is also necessary that the public institution is a charity registered with the Australian Charities and Not-for-profits Commission (ACNC).

Entities interested in seeking DGR status under this new category could prepare by reviewing their governing documents to ensure they meet the requirements to be a charity and this DGR category (,as outlined above).  It would be prudent not to apply for registration as charities before the Bill has passed, however.

We will continue to monitor developments with the Bill as it progresses through Parliament. 

If you would like to discuss the Bill further, or seek assistance with registration as a charity with the ACNC or review of your governing documents in preparation for the Bill’s passage, please do not hesitate to contact Jae Yang at (02) 9466 5222 or at jyang@prolegis.com.au or Seak-King Huang at (03) 8672 2922 or shuang@prolegis.com.au

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