This month, Australian Philanthropic Services (APS) has made a formal submission to the Senate Standing Committees on Economics to ensure that the proposed new minimum rate of capital gains tax does not unintentionally reduce charitable giving in Australia.

At APS, our focus is simple:

We want to protect and strengthen the incentives that encourage Australians to give.

As currently drafted, the proposed Capital Gains Tax (CGT) changes risk having an unintended consequence – reducing the incentive to donate, particularly at the very moment when many Australians choose to give following a significant capital event.

A fundamental principle of Australia’s tax system has long been that donations to Deductible Gift Recipient (DGR) charities should not be taxed. The proposed minimum CGT framework, in its current form, does not fully preserve this principle.

Our recommendation is practical and targeted:

Introduce a mechanism allowing charitable donations to be appropriately recognised within the minimum CGT calculation – ensuring the policy aligns with the Government’s stated objective to support and grow giving.

The intent of changes to taxation matters – but so does the detail.

With thoughtful adjustments, we have an opportunity to ensure tax reform changes continue to encourage generosity, strengthen communities, and support the vital work of the charitable sector.

APS looks forward to continued engagement with Treasury and the broader sector as this important discussion evolves.

Read our formal submission to the Senate Standing Committees on Economics regarding the proposed Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026.

19 June 2026