AUSTRALIA Law and Practice Contributed by: William Moore, Frank Hinoporos, Emma Woolley and Todd Bromwich, Hall & Wilcox
Public AF A Public AF collects donations from the public and distributes them to DGR1 charities. It offers strong tax incentives (tax-deductible donations, tax-exempt earnings) and is ideal for organisations wanting to run public fundraising campaigns, but has heavy regula - tory and reporting requirements, and requires a major - ity of “responsible persons” on the board. Public Benevolent Institution (PBI) A PBI is a charity established to relieve poverty, sick - ness, disability or significant disadvantage. PBIs have access to the most favourable tax concessions (DGR1 status, FBT exemptions, payroll tax concessions) but are tightly regulated, require a clear benevolent pur - pose, and cannot be used for general philanthropic grant-making.
to support philanthropic causes while managing tax outcomes for an estate. 10.2 Common Charitable Structures A range of structures are available to facilitate chari - table giving, each with its own regulatory and tax requirements. In December 2025, the government announced reforms under which Private Ancillary Funds (PAFs) and Public Ancillary Funds (Public AFs) will be renamed “giving funds”, and the minimum annual distribution rate for both will be aligned at 6% of net assets (replacing 5% for PAFs and 4% for Pub - lic AFs). Charitable Trust (Including PAF) A PAF is a family-controlled charitable trust for long- term philanthropy, offering maximum flexibility, tax deductibility and strategic giving without public fun - draising. Disadvantages include strict compliance obligations, mandatory minimum distributions, and the need for at least one “responsible person” on the board.
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