NFP Sector reforms
Are we there yet?
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ACNC
Legislation
◦ Federal
◦ State
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ASIC
APRA
AASB
ATO
Government Funding
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NFP Reforms – Since 1995
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15.5 Million words, 50,000 pages
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Gov’t commissioned 3,000 pages reports
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NFP Sector – 4,500 responses, 29,000 pages
Prof Myles McGregor Lowndes – CMA Conference 2013
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ACNC Act
Statutory Definition of Charity
UBIT
Governance Regulations
‘In Australia’ Legislation
Non Profit Definition
Commonwealth Government Grant guidelines
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Fundraising Legislation harmonisation
Tax Concession Working group
Accounting Standards
Financial Reporting
Religious Charitable Development Funds
Charitable Fundraisers
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Legislation passed – December 2012
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Working with the sector to help compliance
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Directorate of Red Tape Reduction
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Assistant Commissioner – Murray Baird
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Governance Standards, External Conduct
Standards
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Charities Act passed in June 2013
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Given Assent in June 2013
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Gives certainty to ‘Advancing Religion’ as a
statutory Head of Charity
Codifies many other purposes as charitable
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Delayed for unrelated commercial activities
◦ 1 July 2014 if commenced after 10 May 2011
◦ 1 July 2015 if commenced before 10 May 2011
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Originally to commence1 July 2012 for
activities commencing after 10 May 2011
Delay to allow for consultation & engagement
Remains a potential concern
No definitions
◦ ‘Related’
◦ ‘Commercial’
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5 Governance Standards
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Come back tomorrow!
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Marooned before the House of Representatives
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Little appetite by Gillard Government
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Includes definition of ‘non-profit’
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Unclear how relates to External Conduct
Standards
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Unclear how this will proceed
Plan to separate out the non-profit definition
from ‘In Australia’ Legislation
Is pivotal for many parts of the NFP Reform
agenda
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Guidelines have been revised
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Commencement of ‘Report Once, Use Often’
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Information provided to ACNC will be utilised
by other Federal Govt Departments
How is this working in practice?
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Discussion Paper – February 2012
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No actions proposed at this stage
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A major issue for most National Mission
Agencies
Difficult
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Discussion paper released early November
2012
Was to report by 31 March 2013
Report received by Government, not yet
released. Submissions not yet released.
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Accounting Standards Board reviewing many
Accounting Standards as they relate to
Charities
Many apply to Charities – Special purpose
accounts vs general purpose accounts
Revenue – A key standard for ACNC Bill
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ACT & South Australia have transferred
reporting for charities to ACNC
More details with Peter Shields tomorrow
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Religious Charitable Development Funds
Proposal by APRA to restrict investors to
corporations and disallow investment by
retail (individual) investors
Is a significant issue for major
denominational investment funds
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ASIC Consultation Paper 207
Plans to disallow organisations from
accepting funds from corporations and
individuals as a fundraising exercise
Holding funds at low or no interest to invest
will no longer be allowed
No, but we are on the way.
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Are we there yet? No but we are on the way.
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Not clear when (if) the reform agenda will be
complete
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Unclear what impact, if any, the new federal
Treasurer (Chris Bowen) will have on the
reform process
Assistance Treasurer David Bradbury has
genuinely listened to sector representatives
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Federal Election – What impact will it have
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Liberal / National Party victory
◦ Probable significant changes; downsizing of ACNC,
repeal or amendment of other legislation
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Labor Party victory
◦ Probably no significant changes
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Whatever happens the juggernaut will roll on!!