The Government has announced a reform of the Deductible Gift Recipient (DGR) status to strengthen governance arrangements, reduce administrative complexity and ensure trust and confidence in the sector.
The reforms are as follows:
From 1 July 2019, non-government DGR’s must be registered as a charity with the Australian Charities and Non-for-profits Commission. Non-government DGR’s that are not already registered will automatically be registered as of 1 July 2019 and will have a 12 month transitional period to assist with compliance.
The four DGR registers currently administered by other government departments will be integrated into the ACNC’s charity register, and duplicative reporting requirements will be abolished. DGR endorsement assessments for the registers will be undertaken by the ATO. Eligibility for the register of cultural organisations will be extended to include organisations that promote Indigenous languages.
External Conduct Standards will be enforced by ACNC to strengthen the oversight of overseas activities.
There will be additional funding to support additional reviews of charity and DGR eligibility based on risk.
The transition to retirement (TTR) strategy allows you to access some of your super while you continue to work.
You are able to use the TTR strategy if you are aged 55 to 60. You can use it to supplement your income if you reduce your work hours or boost your super and save on tax while you keep working full time.
Starting a TTR pension: To start your TTR pension, transfer some of your super to an account-based pension. You have to keep some money in your super account so that you can continue to receive your employer’s compulsory contributions as well as any voluntary contributions you may be making.
Government benefits and TTR: The benefits you or your partner receive might be impacted if you choose to opt for this strategy. How and what exactly will change might become clearer upon discussing this with a Financial Information Service (FIS) officer.
Life insurance and TTR: In some cases, the life insurance cover you have with your super may stop or reduce if you start a TTR pension – check this before making any decisions or changes.
TTR can help ease your mind as you transition into retirement but it can be a bit complex. Before you choose whether you want to use TTR to reduce work hours or save on tax, or even if you want to use TTR altogether, you should figure out how this will impact all aspects of your finances.
