The following provides a brief summary of the key aspects of Australia's latest regulator – The Australian Charities and Not-forprofits Commission (ACNC):

It commenced operations on 3 December 2012.

Despite its name, at this stage the ACNC regulates charities only. At most recent count around 57,700 charities are regulated with approximately 250 being registered since its establishment.

The objects of the ACNC are to:

  • Maintain, protect and enhance public trust and confidence in the Sector;
  • Support and sustain a robust, vibrant, independent and innovative Australian not-for-profit sector; and
  • Reduce unnecessary "Red Tape".

It is responsible for determining charitable endorsement status, with tax concessions compliance remaining with the ATO.

It effectively replaces ASIC for Charities which operate as a company limited by guarantee.

It maintains a register covering key governance and financial information for each registered charity and for which the majority of information will be available to the public via the ACNC website. (www.acnc.gov.au)

All charities must maintain books and records that would enable review by the ACNC Commissioner and the ATO.

There are financial reporting and audit requirements for many charities with the first year of lodgement being in respect to the year ending 30 June 2014 as outlined in our table below.

Registered Charitied - ACNC Reporting Requirments

Revenue Annual
Information
Statement
Financial
Report
Review Audit
$250,000 or less Yes No No No
$250,001 - $999,999 Yes Yes Yes No
$1,000,000 or more Yes Yes n/a Yes

In an Australian first, there are now specific governance and external conduct standards for all charities regardless of their legal structure (excluding Basic Religious Charities eg. Churches).

Annual Information Statements for all charities, including details on how Charities have achieved their objects and who has benefitted will be required to be lodged with the ACNC.

The ACNC and the ATO have the regulatory ability to undertake assessment of a charity's activities along with enforcement powers. The ACNC considers itself as a light touch regulator.

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