Proposed taxes on trusts could limit the amount of money given to charities, but the minister responsible says it's the least of the sector's problems.
With more than $5 trillion expected to pass down the generations through wills and bequests over the next two decades, economist turned assistant charities minister Andrew Leigh hopes to make it easier to direct that money to charitable projects where it can make a real difference.
"Growing bequests requires culture, systems and trust," he told the National Press Club on Wednesday.
His call comes at the same time as the Labor government plans to slap a 30 per cent tax on the distribution income of trusts, which critics say could limit the amount given to charities.
But Dr Leigh said the proposed changes weren't the biggest risk to future donations, with online life limiting people giving to charitable causes.
"Young people, particularly young men, are spending more time alone than our retirees, so we're seeing this shift from engaging in person towards engaging online, and partly that's because socialising is a habit. The more you do, the easier it gets," he said.
"The cultural part begins with more Australians feeling able to talk about death, wills and legacy. Families do better when hard conversations happen early. Communities do better when planning replaces confusion."
Dr Leigh said charitable trusts have been carved out of trusts, but the government was still engaging with the sector on issues surrounding discretionary trusts.
The Labor assistant minister - one of the party's only MPs not aligned with a faction - outlined a plan to encourage more Australians to leave bequests to charities in their wills.
"After fires and floods, Australians are magnificent. We donate, cook, shovel and comfort. The question is how to carry some of that spirit into ordinary times," he said.
Dr Leigh announced an extra $2 million to help the corporate register and the charities commission align their systems to reduce the number of duplicate forms non-profits need to fill out.
He also pushed for bequests to become a normal part of estate planning, urging lawyers, accountants, financial planners and wealth advisors to work with charities to encourage more Australians to leave a bequest in their will.
Dr Leigh confirmed the federal government's plans to increase the amount so-called "giving funds" are required to pay out each year to six per cent of their total assets, which is expected to deliver charities an extra $60 million annually.
Such trusts, which receive special tax exemptions, are often used by wealthy donors to invest their money before gradually handing it over to charities.
