Former Business Council of Australia chief Jennifer Westacott has been appointed as the new chair of Future Generation Global Ltd, a listed investment company that donates part of its profits to youth mental health charities.
Founded by veteran stockpicker Geoff Wilson in 2015, the listed investment company combines investment returns with social impact. It donates part of its profits to youth mental health charities, a figure that sits at $38 million so far.
Universal tax-free program boosts philanthropy
Westacott's immediate challenge in her new role involves leveraging her extensive political connections, as the Future Generation companies propose to the Productivity Commission the creation of a universal tax-free program aimed at boosting philanthropy.
The draft submission by Future Generation to the government, to be publicised this week, advocates for a scheme allowing Australians to allocate a tax-free sum for philanthropic endeavours.
This proposition mirrors Britain’s individual savings accounts model but with an added focus on charitable donations and investments. Westacott emphasises the necessity of identifying suitable tax arrangements and incentives for such initiatives.
Future Generation, which offers its shareholders exposure to top Australian fund managers without incurring management or performance fees, has seen a 7.2% return since its inception. This performance, however, trails the MSCI AC World Index's 9.5% return over the same period.
Wilson envisions the possibility of expanding the $3 billion currently in philanthropic investment vehicles to a staggering $100 billion, which would significantly increase its support of non-profits to around $1 billion.
Westacott, a staunch advocate for mental health, brings to the table her extensive experience in the public and private sectors, including a seven-year tenure as chair of Mental Health Australia.
“For all the money we’ve spent, we’re not making progress."
Westacott said, “I’ve been a passionate advocate about mental health for a long time,” as she can “see how ineffective services for people with a mental illness or people with mental wellbeing issues have been”.
“So this is a huge kind of issue for me and so this is right in the sweet spot on the mental health.”
Caroline Gurney, Future Generation's chief executive, lauds Westacott's appointment, highlighting her passion for business, community welfare and her deep understanding of public-private sector dynamics.