The Australian National Audit Office (ANAO) has announced the initiation of a performance audit of the Regulation of charities by the Australian Charities and Not-for-profits Commission. The ANAO proposes to examine the ACNC’s arrangements for: registering charities and maintaining the Charity Register; supporting charities to meet their ongoing compliance obligations; and reducing the regulatory burden on charities and strengthening the…

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Never in the history of humankind has there been such potential to create social impact. There are more charities than ever, more people volunteering overseas, more interest in a globally connected world. And yet, it seems that some problems are never truly solved, despite charities getting bigger and more ubiquitous. How can this be? Let’s look at how the typical…

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Northern Territory charities will benefit from reduced red tape due to a new streamlined reporting option between the Australian Charities and Not-for-profits Commission (ACNC) and Licensing NT. The new exemption, which comes into effect on 1 July 2019, applies to charities registered with both Licensing NT and the ACNC. To view the ACNC article in full, click here.

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ED 293 proposes to require for-profit entities lodging special purpose financial statements (SPFS) with the Australian Securities and Investments Commission and not-for-profit entities lodging SPFS with the Australian Charities and Not-for-profits Commission to disclose an explicit statement as to whether or not the accounting policies applied in the SPFS comply with all the R&M requirements in Australian Accounting Standards (AAS).…

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In December 2018, the Australian Accounting Standards Board (AASB) issued an amending standard that provides a temporary exemption for not-for-profit (NFP) entities from the requirement to fair-value the right-of-use assets arising from peppercorn lease contracts. The exemption is optional, allowing entities to measure and recognise right-of-use assets arising from peppercorn leases at fair value if they choose to do so,…

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From 1 July 2019, small employers need to report their tax and super information to the ATO through Single Touch Payroll (STP). Employers may be eligible for a quarterly reporting concession if they are: a micro employer (1-4 employees) seasonal employer an employer with closely held payees, such as directors, family members, trust beneficiaries or shareholders of a business. To…

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Franking credits attached to franked dividends paid to your organisation, or attached to an entitlement to a franked distribution, are refundable. This is provided you meet certain eligibility criteria Franking credits generally occur for shareholders when certain Australian-resident companies pay income tax on their taxable income and distribute their after-tax profits by franked dividends. These franked dividends have franking credits…

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Not-for-profit governance is awash with change in Australia. Some organisations are moving from being incorporated associations under state law to Companies Limited by Guarantee under the Commonwealth’s Corporations Act. Others are replacing representative boards with skills-based boards. And still others are investigating ways of replacing old federated structures with new national ones. As any lawyer can explain, these changes are…

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The shutdown of Israel Folau’s GoFundMe campaign raising money for his legal challenge against Rugby Australia has prompted calls from the fundraising sector for stricter regulation of international crowdfunding. Folau’s fundraiser, which on Sunday night had raised over $750,000 of it’s $3 million target, was closed by GoFundMe on Monday for violating the company’s terms of service, with a refund…

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The ATO recently released a new ruling about the requirements for FBT exemption for benefits provided to religious practitioners. This ruling is a re-write of TR 92/17W, and there are no major changes to the overall ATO view. The ruling provides clearer guidance on the Commissioner’s view on the meaning of: registered religious institution religious practitioner pastoral duties and directly…

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