Australian Charities and Not-forProfits Commission
One stop Shop – Open for Business
3 December 2012
Murray Baird
Assistant Commissioner General Counsel
Australian Charities and Not-for Profits Commission
Commentary by Vera Visevic
Partner Charity & Not-For-Profit
Mills Oakley Lawyers
An Australian Charities
Commission
a new independent
statutory agency,
the Australian
Charities and
Not-for-profits
Commission (ACNC),
by 1 July 2012 and
related structural
changes required to
the Australian
Federal Budget May 2011
Taxation Office
ACNC starts today
Slow Train Coming
•
•
2001 Definition of Charities
2008 Disclosure Regimes for
Charities and NFP Organisations
•
2010 Productivity Commission :
Contribution of the Not-for Profit
Sector
•
•
2010 National Compact
2010 Henry Review
•
2010 Senate Economic
Legislation Committee inquiry
Reform Agenda
•Office for the Not-for
Profit Sector – to
drive and coordinate
reform
•Not for Profit Reform
Council – advice to
Government on
Reform
•ACNC - Regulator
•Public Ancillary Fund
Reform
•Unrelated Business
Income Tax
•“In Australia” test
•Statutory definition
of Charity
•Social Enterprise
Development and
Investment Fund
•National Disability
Insurance Scheme
•Many more…
Who is in?
• Welfare and disability;
• (Non Government) Schools, Universities
etc;
• Churches, Religious organisations
• Conservation, Arts, Childcare
Who will the ACNC regulate?
• Existing charities that currently access
Commonwealth tax concessions
• Existing and new charities that want to apply for
Commonwealth tax concessions and other benefits
• 56,000 charities, 10% of broader NFP sector
• Possibly other types of NFPs but not before 2014
Trust
Maintain, protect
and enhance public
trust and confidence
in the Australian notfor-profit sector.
Health
Support and sustain
a robust, vibrant,
independent and
innovative Australian
not-for-profit sector
Cut Red Tape
Reduction of
unnecessary
regulatory
obligations on the
Sector
What will ACNC Do?
Registration
Compliance
Education and guidance
Information
More work to be done
• Governance Standards by 1
July 2013
• Financial Reporting for year
ending 30 June 2014
Withholding Information from
Register
• Commercially sensitive;
• Detriment to entity or individual;
• Inaccurate, confusing, misleading,
offensive; dangerous;
• Prescribed by regulation – could be
made for Private Ancillary Funds to
protect private donor privacy
Size does matter
• Small : annual
information
statement
• Medium: financial
report – audited or
reviewed;
• Large: financial
report audited
Governance
• The process to ensure that an
organisation achieves its mission
• Steering and Stewarding
• Registered charities will meet
governance standards;
• Principle based, not rule based;
• Good practice guidance;
• Proportionate
Regulatory Approach
• Light-touch, risk-based, evidence-based approach
• Provide information, guidance and education
• Use graduated powers, provide opportunity for
self-correction
• Regulatory Principles: relevance, proportionality,
consistency, transparency, timeliness.
Deregistration
Graduated
Sanctions
Investigation
Assistance
Guidance
Education and guidance
Public Register
Relationship to ATO
• ACNC
• Registration of charities (including Public Benevolent Institutions)
for Commonwealth purposes from 1 October 2012
• Establish Reporting Framework and Information Portal
• Work with Commonwealth, State and Territory agencies to
consolidate reporting and reduce compliance burden
• Australian Tax Office – Non-Profit Centre
• Endorsement for tax concessions
–
–
–
–
–
Income Tax exemption
Deductible Gift Recipient (DGR)
Fringe Benefits Tax exemption or rebate
GST Concessions
Refund of franking credits
What will charities need to know
and do on Commencement?
Charities that were
registered with the ATO
prior to commencement do
not need to take any action
unless:
• They wish to opt out of
registration on the
approved form by 1 March
2013.
• Religious institutions may
wish to register or register
as a sub-type.
Where to from here
• December 2012
• ACNC begins operation – registering new
charities
• July 2013
• First annual (non-financial) reports start to be
collected
• Financial reporting and governance standards
• Information Portal – for charities and public
• Statutory Definition work to commence
Thank you
Email:
Murray.baird@acnc.gov.au
Website:
acnc.gov.au