Welcome to our June 2014 not-for-profit law newsletter. As we rapidly approach the end of this financial year, we report on some new developments ahead of the new financial year. They include:

  1. The Federal Government's proposed cut to legal aid funding in its recent budget.
  2. Reform in the manner in which payments will be made for aged care services by new residents post 1 July 2014.
  3. Updates on mandatory disclosure obligations and new changes in retirement village contracts for operators.
  4. The ever growing Crowd Funding economy and the impact of regulatory reform concerning disclosure in Australia and the US.
  5. Ongoing ACNC issues including the controversial issue – will the ACNC Act be repealed?
  6. The Hunger Project Case appeal where the decision of the Lower Court was upheld, confirming that there is no technical requirement that the level and nature of delivery of charitable relief by an entity must be hands on, so as to qualify as a Public Benevolent Institution.

In our Good News Section, we report on some good and not so good news for our primary and secondary school communities. Whilst the recent High Court challenge to Commonwealth Chaplaincy Funding has been successful with a finding that Federal Chaplaincy funding is unconstitutional, the Federal Government has expressed its commitment to the continuation of Chaplaincy Funding for schools.

We hope you enjoy our newsletter and wish you all the best in closing off for this financial year and in the new financial year.

The Carroll & O'Dea Not-for-profit Team

FEDERAL BUDGET 2014 AND FUNDING CUTS TO LEGAL AID

The Federal Government has announced that it will be reducing Commonwealth funding for Legal Aid nationally by up to $15 million in its most recent budget. The funding changes come at an untimely moment following the Productivity Commission's inquiry into Access to Justice Arrangements. The proportion of Commonwealth funding for the Legal Aid Commission will now represent 35% of its funding following the changes.

A number of peak legal bodies have expressed concern with the funding changes and their impact on access to justice in Australia.

  • President of the NSW Bar Association, Phillip Boulton SC has commented:

  • "These cuts will further increase the numbers of unrepresented litigants coming before our courts. It is well established that self-represented litigants increase the demand on time, costs and resources of the court system".

  • The Law Council of Australia has also expressed its concern that the reduction of legal aid funding will not only exacerbate the strain of frontline legal aid staff by imposing more stringent means tests, but will also result in increased downstream costs for the economy and society as a whole. Its President, Mr Michael Colbran QC has called for an increase in the Commonwealth funding, as well as the readjustment of funding arrangements to reflect a 50-50 split between Federal and State/Territory funding of legal aid arrangements.

The funding changes will certainly have an adverse impact on those less well off to fend for themselves at a time of great need. The provision of Pro-bono legal assistance by private firms and solicitors will increasingly be essential to improving access to justice for disadvantaged clients.

Carroll & O'Dea provides legal assistance on a Pro-bono basis in accordance with our Pro-bono policy. We welcome all enquiries.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.