Rachael Rofe

Ahead of the new financial year, Australians who have more than they need may want to think about putting greater purpose into their financial plans through philanthropy, according to Rachael Rofe, head of the Australian Philanthropic Services (APS) Foundation.

Australia is in the midst of a $5.4 trillion intergenerational wealth transfer, the largest in its history. Fuelled by decades of rising property prices and investment gains, this unprecedented shift is prompting many Australians to rethink the sharing of their wealth. For those seeking to leave a meaningful impact, structured giving is a practical option, with the bonus of significant tax advantages, according to Rofe.

“With the end of the 2024-25 financial year nearing and tax considerations front-of-mind, we encourage those Australians who have more than they need to consider donating or sharing their wealth through gifts.  Unlike previous generations, Australian heirs are more likely to receive wealth at a time when they are less likely need it. The average recipient is in their 50s, typically at or near peak earning years, often already established in career and property ownership,” said Rofe. 

“With more wealth than they need, it is increasingly common to see such Australians undertake philanthropy and establish a giving fund, and use the fund as a long-term vehicle to deliver capital to charities, one that can continue well beyond their own lifetime.”

Givers can choose between establishing their own foundation (private ancillary fund or PAF) or a giving fund in the APS Foundation (a public ancillary fund). Both have the same tax deductibility and givers have the ability to select the eligible charities they wish to support.

“Such funds provide a tax-smart strategy for individuals seeking both an immediate tax deduction and the flexibility to give over time. Structured giving allows a person to pre-fund their giving, that is, to claim the tax deduction while they are still earning an income, then support the causes they care about,” Rofe said.

“Australians are generous – more than 80% give in some form – but what is changing is the structure, scale, and sophistication of that giving. There are now more than 3,000 ancillary funds in Australia, managing billions in capital committed to the community. Contributions to these vehicles in the last financial year (FY24) are anticipated to have reached a record high, building on the exponential growth in contributions over the past decade.”

Financial advisers who suggest structured giving to clients can often save them a large tax bill. If the structure is a PAF, they will still have the care and management of the funds, allowing their client the time to think about their giving and engage with the charities they choose to support. 

“Importantly too, the charitable sector benefits from structured giving because the funds in PAFs and giving funds are invested and earnings are tax-free, growing the amount committed to the community over time.”

While giving during one’s lifetime offers the greatest tax benefits, charitable gifts made through an estate can also be tax-efficient. Appreciated assets bequeathed to Deductible Gift Recipients (DGRs), like ancillary funds, are exempt from Capital Gains Tax (CGT), says Rofe. 

“Structured giving is a tax effective way to bring purpose and joy during a person’s lifetime. It also allows families to pass down not just wealth, but the profound joy of giving,” she said. 

According to data from the Australian Taxation Office (ATO), in the 2021-22 income year, individual Australian taxpayers claimed a total of $4.55 billion in tax-deductible donations. This is an increase from the $4.39 billion claimed in the 2020-21 income year.

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Judith Fiander

In response to Australia’s unprecedented $5.4 trillion intergenerational wealth transfer, Australian Philanthropic Services (APS) has launched a new service to help families shape a more purposeful legacy — one grounded in generosity, not just wealth.

The ‘Giving Legacy’ service makes it easy for Australians to embed philanthropy into their estate and succession plans — offering a flexible, values-based approach to legacy planning that extends beyond financial assets.

APS CEO, Judith Fiander, says the new service fills a growing gap in the market.

“We’re seeing a surge in people looking to make their giving intentional and enduring. But many don’t know how to get started, or how to ensure their impact outlives them,” she says.

The Giving Legacy service allows individuals to establish a Giving Fund through the APS Foundation — either during their lifetime or through their Will. It includes the option to:

• Start giving now and receive immediate tax benefits
• Nominate a trusted individual or appoint APS to manage the fund
• Create a personalised Giving Plan that documents philanthropic intent
• Join a national community of Giving Guardians — individuals committed to lasting impact through giving

“Giving Legacy makes it simple. It can be set up in under 24 hours, and tailored to your personal values, causes, and family,” Fiander says.

The service is particularly relevant for those who have recently experienced a major financial event — such as the sale of a business or property — and are seeking both tax-effective solutions and a long-term giving strategy.

“Many Australians don’t just want to pass on wealth — they want to pass on what matters,” says Rachael Rofe, Head of the APS Foundation.

“This is for those who want to leave behind more than an inheritance. It’s for people who want to spark impact, model generosity, and give the next generation something to live by, not just live off.”

“This isn’t just about winding up an estate. It’s about using your success to shape a better future — while you’re here to see the impact, or after you’ve gone,” says Rofe.

With tax-free investment returns, expert management, and ongoing distribution to charities of your choosing, a Giving Fund can help your generosity grow over time — turning one decision into decades of impact.

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Rachael Rofe

The new year is a time of resolutions and reflection – and many start the year with a plan to sort their financial futures too. With an estimated $150 billion in inheritances transferred last year and a projected $3.5 trillion over the next two decades, January presents an opportunity for Australians to think about giving as part of their financial plan, according to Rachael Rofe, head of the Australian Philanthropic Services (APS) Foundation.

She says for families seeking to leave a meaningful impact, structured giving is a practical and enduring option, with the added bonus of significant tax advantages.

“Private Ancillary Funds (PAFs) and giving funds in public ancillary funds, like the APS Foundation, provide a tax-smart strategy for individuals seeking both an immediate tax deduction and the flexibility to give over time.

“They are an ideal choice for donors facing a significant liquidity event – such as the sale of a business or property resulting in a large tax bill – or for those looking to ring fence wealth specifically for the community.

“Donors can commit capital to their fund, receive a full tax deduction for the amount contributed now, and distribute funds to charities gradually over time.

“With investment returns tax-free, structured giving enables individuals to give and grow funds for greater future charitable impact.”

She said the new year is often a time when people consider their legacy and estate planning options, and that charitable giving is part of this process.

“Legacy and estate planning is about more than passing down assets. It’s about creating a connection between your values and future generations,” Ms Rofe said.

“Structured giving empowers families to ensure their generosity lives on, supporting causes and communities that matter. It goes beyond simply passing on assets. It’s about creating a legacy that reflects values and priorities while supporting the people and communities they care about.”

Ms Rofe outlined two key considerations to help Australians make informed decisions around giving and starting the new year with purpose:

• Giving while living: By starting now, you can actively support the causes you care about, enjoy immediate tax benefits, and engage loved ones in a shared philanthropic journey. A giving structure allows you to refine your vision and test approaches
• A tax-efficient approach to legacy and estate planning: While giving during your lifetime offers the greatest tax benefits, charitable gifts made through your estate can also be tax-efficient. Appreciated assets bequeathed to Deductible Gift Recipients (DGRs), like ancillary funds, are exempt from Capital Gains Tax (CGT).

“Structured giving is a tax effective way to bring purpose and joy during a person’s lifetime. It also allows families to pass down not just wealth, but the profound joy of giving,” Ms Rofe said.

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