While Australians will bequest more than $1 billion to charities this year, our rate of giving is less than many other wealthy nations.
The latest Bequest Report from JBWere estimates $150 billion will be gifted in Australia this year through inheritances, with $1.3 billion of this to be given to charity.
NAB Executive for Private Wealth, which includes JBWere Australia, Michael Saadie said the report found Australia’s bequest rate of one percent was the same as New Zealand, but was lower than the 3.7 percent ($7.6b) in the United Kingdom and the 4.4 percent ($69b) in the United States.
“Australia is a fortunate country with a strong economy, wealth, and a relatively small population. However, our giving to charitable organisations through bequests lags behind many other wealthy nations,” Mr Saadie said.
He said the report also revealed roughly 6.5 percent of wills in Australia included a gift to charity.
“This compares to five percent in New Zealand, 10 percent in the United States and 13.7 percent in the United Kingdom.”
Mr Saadie said top causes supported through bequests in Australia, by dollar value, were health and medical research, animal protection, welfare and international aid.
He said this year’s estimated $150 billion inheritance formed only part of the estimated $5.4 trillion wealth transfer that would change hands in the next 20 years across Australia.
“We have already entered the most significant period of wealth transition in modern Australian history,” Mr Saadie said.
“If we grew the current charitable bequest rate by even one percent, it would transform both the for-purpose sector while still providing generously for our families.”
