Currently, the tax laws contain general categories of deductible gift recipient
(DGR) for organisations which provide religious instruction in government schools, but there is no category for providers of ethics classes," said Assistant Treasurer David Bradbury.
Australia accords Deductible Gift Recipients (DGRs) status to only 22,000 organisations compared to its over 48,000 charitable institutions and funds endorsed by the ATO (CPNS 2006).
Such public scrutiny was prudent given that Australian charities and deductible gift recipients did not have to file any type of annual return or report to the ATO and self assessed their concession status with minimum oversight until 2000.
Given Australia's narrow class of deductible gift recipients compared to other jurisdictions, there is also the danger that those nonprofit organisations outside the gift deductible regime could be adversely impacted as well.
The Government appears to have received 'a bang for its buck' in that there is mounting evidence that new private funds have been directed to deductible gift recipients.