Most charities start with a small group of people and a cause they care about. Turning that group into a registered charity means doing three things in the right order: getting an ABN, registering with the Australian Charities and Not-for-profits Commission (ACNC), and then being endorsed by the ATO for tax concessions and, if you qualify, deductible gift recipient (DGR) status.
This guide covers who can register, the 12 charitable purposes in the Charities Act 2013, choosing a legal structure, the six ACNC Governance Standards, the ATO concessions on offer, DGR basics and realistic timeframes for 2026-27. Every rule and figure was checked against the ACNC, the ATO, ASIC and legislation.gov.au on 7 October 2026.
It is written for founders, committee members and treasurers setting up a community, cultural, welfare or religious organisation. If you do not have an ABN yet, read our ABN basics guide first, or see how we handle ABN registration for new arrivals.
Key takeaways
- You need an ABN before the ACNC can register you.
- ACNC registration is free. Allocation can take up to 12 weeks, then a decision usually follows within 15 business days of the ACNC having everything it needs.
- All your purposes must be charitable and for the public benefit. The law recognises 12 charitable purposes, plus the PBI and health promotion charity subtypes.
- Registered charities must meet six Governance Standards and lodge an Annual Information Statement every year.
- ATO tax concessions and DGR endorsement are requested in the ACNC application and passed to the ATO if registration succeeds.
- Not-for-profits only have to register for GST once turnover reaches $150,000, not $75,000.
Charity registration at a glance
| Step | Who handles it | What to know |
|---|---|---|
| 1. Choose a legal structure | State regulator or ASIC | Incorporated association (state based) or company limited by guarantee (national, at least 3 directors) |
| 2. Write the governing document | Founders | Charitable purpose, not-for-profit and winding-up clauses |
| 3. Get an ABN | Australian Business Register | Must be in place before ACNC registration |
| 4. Apply to the ACNC | ACNC Charity Portal | Free; up to 12 weeks to allocate, decision about 15 business days after full information |
| 5. Tax concessions and DGR | ATO, via the ACNC application | Income tax exemption, GST concessions, FBT rebate or exemption, DGR if eligible |
| 6. Ongoing reporting | ACNC | Annual Information Statement; financial report if medium or large |
Source: ACNC – who can register, ACNC – application questions, ATO – charity tax concession rules, ASIC – company officeholders, checked 7 October 2026.
Who can register as a charity in Australia?
The ACNC eligibility factsheet sets out five requirements. Your organisation must:
- be not-for-profit, meaning it does not operate for the profit, personal gain or other benefit of particular people
- have only charitable purposes that are for the public benefit
- have an ABN
- comply with the ACNC Governance Standards
- comply with the External Conduct Standards if it operates outside Australia
What counts as a charitable purpose?
The Charities Act 2013 defines charity and charitable purpose. Section 12 lists the purposes, which the ACNC uses as charity subtypes when you apply.
| Charitable purpose | Typical example |
|---|---|
| Advancing health | Community health clinic, support groups |
| Advancing education | Tutoring program, scholarships |
| Advancing social or public welfare | Food relief, emergency accommodation |
| Advancing religion | Gurdwara, church, mosque or temple |
| Advancing culture | Language school, cultural festival |
| Promoting reconciliation, mutual respect and tolerance | Interfaith or multicultural programs |
| Promoting or protecting human rights | Legal information for vulnerable groups |
| Advancing the security or safety of Australia | Volunteer emergency support |
| Preventing or relieving the suffering of animals | Animal rescue and rehoming |
| Advancing the natural environment | Bushcare and waterway restoration |
| Promoting or opposing a change to law or policy | Advocacy that furthers another charitable purpose |
| Other purposes beneficial to the general public | Purposes analogous to those above |
Two further subtypes sit alongside these: public benevolent institution (PBI) and health promotion charity (HPC). They matter because they unlock extra FBT and DGR treatment. The ACNC application guide notes most applicants choose one to three subtypes, and you must be able to show how your activities fit each one.
Which legal structure should a charity use?
Incorporated association
An incorporated association is registered under state or territory law and suits local groups working mainly in one state. Committee and membership rules come from that state’s legislation and your rules.
Company limited by guarantee
A company limited by guarantee is registered with ASIC and suits charities working nationally. It is a public company, so ASIC requires at least 3 directors, with at least 2 normally living in Australia, and each director needs a director ID before appointment. The ASIC company registration fee is $636 from 1 July 2026, per business.gov.au; our company registration costs guide and ABN vs ACN explainer cover the detail.
Once registered as a charity, a company limited by guarantee reports to the ACNC instead of ASIC. It does not file an ASIC annual review or pay the annual review fee. Charitable trusts and funds are covered in our private ancillary fund guide.
What must your governing document include?
Your constitution, rules or trust deed should include:
- A specific purpose clause that matches one or more charitable purposes, not a vague aim such as “helping the community”.
- A not-for-profit clause stopping income and assets being paid to members except as reasonable payment for services or expenses.
- A winding-up clause sending surplus assets to another charity with similar purposes. If you want DGR status, the ATO requires certain surplus assets to go to another DGR.
- Rules for appointing and removing directors or committee members, meetings and record keeping.
How do you apply to the ACNC, and how long does it take?
- Get an ABN for the organisation through the Australian Business Register. The ATO starting an NFP guide notes you can register for GST, FBT and PAYG withholding at the same time if needed.
- Gather what the ACNC checklist asks for: legal name and ABN, address for service, governing document, Responsible People details (full name, date of birth, position, residential address, phone, email), current and planned activities for the next 12 months, beneficiaries, a revenue estimate and your financial year end.
- Log in to the Charity Portal and choose “Apply to register a new charity” on the ACNC apply page.
- Answer the questions about ATO charity tax concessions and DGR endorsement.
The ACNC says it can take up to 12 weeks for an application to be allocated, and it aims to decide within 15 business days once it has all the information it needs. A refusal can be reviewed.
What tax concessions can a registered charity get from the ATO?
To access charity tax concessions you need an ABN and ACNC registration. For income tax exemption, the ATO rules also require the charity to meet one of three tests (the in Australia test, the DGR test or the prescribed by law test), follow its governing rules and apply its income and assets solely to its purposes.
- Income tax exemption for endorsed charities.
- GST concessions, which need only ABN and ACNC registration. Examples on the ATO GST concessions page include GST-free sales of donated second-hand goods and the option to account for GST on a cash basis. The GST registration threshold for not-for-profits is $150,000 (see our GST registration guide).
- FBT rebate for registered charities endorsed for income tax exemption that are institutions.
- FBT exemption for registered PBIs and health promotion charities with the specific endorsement.
How does DGR endorsement work?
DGR status lets donors claim a tax deduction for gifts. The ATO DGR rules say all general DGR categories now require charity registration, with transitional periods in some cases, and every DGR must be established and operated in Australia. You request DGR endorsement in the ACNC application, and the ATO decides it after registration. Our DGR registration support page explains how we help with this step.
For donors, the ATO has removed the old $2 minimum for gifts made from 1 July 2024 (see our donation deductions guide).
What do you have to do after registration?
Every charity must keep meeting the six ACNC Governance Standards: (1) purposes and not-for-profit nature, (2) accountability to members, (3) compliance with Australian laws, (4) suitability of Responsible People, (5) duties of Responsible People and (6) participation in the National Redress Scheme where it applies, as summarised in the ACNC small charities library. Basic religious charities are exempt from the Governance Standards.
You also lodge an Annual Information Statement each year. Charity size sets the financial reporting, using the thresholds in the ACNC 2025 AIS hub: small (under $500,000 revenue) lodges the AIS only, medium ($500,000 to $2,999,999) adds a reviewed or audited financial report, and large ($3 million or more) adds an audited report. Our AIS guide and ACNC compliance and reporting service cover this in detail.
Worked example: sizing a new charity for reporting
A Punjabi community welfare group in Melbourne registers as a company limited by guarantee. In its first full year it expects a state grant of $310,000, donations of $145,000 and event income of $62,000.
Total revenue: $310,000 + $145,000 + $62,000 = $517,000. That is $500,000 or more but under $3 million, so it is a medium charity and must lodge a reviewed or audited financial report with its AIS.
If event income came in at $40,000 instead, revenue would be $310,000 + $145,000 + $40,000 = $495,000. That is under $500,000, so it would be small and lodge the AIS only.
Rule of thumb: Finalise the ABN, governing document and Responsible People details before you open the ACNC form. The ACNC only decides an application once it has everything it needs, so gaps simply add weeks.
Common mistakes when registering a charity
- Vague purposes: “supporting the community” does not show a charitable purpose. Name the purpose and the beneficiaries.
- Missing clauses: no not-for-profit or winding-up clause in the constitution is a common reason for follow-up questions.
- Applying without an ABN: the ACNC uses the ABN as the charity identifier, so get it first.
- Assuming ACNC registration means DGR: DGR is a separate ATO endorsement with its own categories and conditions.
- Ignoring charity size: one large grant can move you from small to medium and trigger a reviewed or audited financial report.
FAQ about registering a charity
Is it free to register a charity with the ACNC?
Yes. The ACNC does not charge a fee to register a charity, and applying for ATO charity tax concessions through the same application has no fee either. Your costs come from setting up the legal entity, such as the ASIC fee for a company limited by guarantee or a state fee for an incorporated association, plus any legal or accounting help with the constitution.
How long does ACNC registration take?
The ACNC says it can take up to 12 weeks for an application to be allocated to an officer. Once it has all the information it needs, it aims to make a decision within 15 business days. Missing details, vague purposes or a governing document without the right clauses add time because the ACNC has to come back to you.
How many people do I need to start a charity?
The ACNC does not set a minimum number of Responsible People, but your legal structure might. A company limited by guarantee is a public company, so it needs at least three directors, with at least two normally living in Australia. Incorporated associations follow their state or territory rules on committee size and membership.
Does ACNC registration automatically give us DGR status?
No. ACNC registration makes you a charity and lets you ask for ATO charity tax concessions. DGR endorsement is separate. You request it in the same application, but the ATO decides it, and your organisation must fit a DGR category, meet the in Australia condition and have suitable winding-up rules.
Can a registered charity make a profit?
A charity can make a surplus, and many need one to stay viable. What it cannot do is operate for the profit, personal gain or other benefit of particular people. Surplus funds must go back into the charitable purpose, and the governing document must stop income and assets being distributed to members, directors or committee members.
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Nanak Accountants can help you choose a structure, prepare the ABN and ACNC applications, request tax concessions and DGR endorsement, and set up bookkeeping for your first AIS. See our not-for-profit accounting guide, learn about our team, call 1300 626 258 or visit Nanak Accountants.
This article is general information only and is not personal tax or legal advice. Figures and rules were checked against the ACNC, ATO, ASIC, business.gov.au and legislation.gov.au pages linked above on 7 October 2026. Rates and thresholds change, so confirm the current position before acting.
