On this page
- Tax concessions for charities and not-for-profit organisations
- Tax concession charity (TCC) endorsement
- Applying for TCC endorsement
- Common questions about tax concessions
Tax concessions for charities and not-for-profit organisations
One of the key benefits of being a charity is access to government tax concessions. Some tax concessions are also available to certain not-for-profit organisations that are not charities.
Tax concessions may reduce the tax an organisation pays, provide concessions relating to benefits given to employees or, in the case of deductible gift recipient (DGR) endorsement, allow donors to claim tax deductions for eligible gifts.
Tax concessions are a complex area of law. Different eligibility requirements apply to different concessions, and not every charity or not-for-profit organisation can access every concession. Most tax concessions are Commonwealth concessions, but state and territory concessions may also be available.
Our resources explain some of the common tax concessions available to charities and not-for-profit organisations and the requirements for accessing them.
More information
For more information, see our resources on deductible gift recipient status, fringe benefits concessions and income tax exemption.
Tax concession charity (TCC) endorsement
A charity must generally be registered with the Australian Charities and Not-for-profits Commission (ACNC) before it can apply for Commonwealth charity tax concessions. The Australian Taxation Office (ATO) decides whether to endorse a charity for those concessions.
This process is commonly called endorsement as a tax concession charity (TCC).
Tax concessions that may be available to charities include:
- income tax exemption
- goods and services tax (GST) concessions
- fringe benefits tax (FBT) rebate
- FBT exemption, and
- a refund of franking credits
DGR endorsement may also be available to an eligible organisation. It is separate from TCC endorsement and has different eligibility requirements.
Not every charity is eligible for every concession. Additional requirements apply to some concessions.
Applying for TCC endorsement
Our fact sheet explains:
- the eligibility requirements for TCC endorsement
- the tax concessions that may be available to charities
- additional requirements for particular concessions
- how to apply for endorsement, and
- the difference between TCC endorsement and DGR endorsement
Common questions about tax concessions
Do not-for-profits pay tax?
It depends on the organisation and the tax involved.
Some not-for-profit organisations are exempt from certain taxes or eligible for tax concessions. Others may be required to pay tax in the same way as other organisations. Registered charities may be eligible for additional tax concessions that are not available to other not-for-profit organisations
For more guidance, see our webpages on income tax exemption, fringe benefits concessions, goods and services tax, deductible gift recipient status, and state and territory taxes.
What is DGR status?
DGR (deductible gift recipient) status allows donors to claim a tax deduction for eligible gifts or donations made to an organisation. Not all charities are eligible for DGR endorsement, and DGR endorsement is separate from tax concession charity (TCC) endorsement.
For more guidance, see our webpage on deductible gift recipient status.
How do you apply for DGR status?
An organisation must satisfy eligibility requirements before it can apply for DGR endorsement. The application process depends on the DGR category that applies to the organisation.
For more guidance, see our webpage on deductible gift recipient status.
Do charities pay GST?
A charity may need to register for GST and pay GST on taxable supplies. However, charities can also access a range of GST concessions if they satisfy the relevant requirements.
For more guidance, see our webpage on goods and services tax.
What tax concessions can not-for-profits access?
Depending on their circumstances, charities and other not-for-profit organisations may be eligible for tax concessions relating to income tax, GST, fringe benefits tax and other taxes. Different eligibility requirements apply to different concessions.
For more guidance, see our webpages on income tax exemption, fringe benefits concessions, goods and services tax, deductible gift recipient status, and state and territory taxes.
Government resources
The content on this webpage was last updated in September 2026 and is not legal advice. See full disclaimer and copyright notice.
