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NFP Reform as at 8 May 2013 - Minter Ellison www.minterellison.com
New National NFP regulator (ACNC)
- Australian Charities and Not-for-profits Commission Act 2012 assented to on 3 December 2012, as Act No.168 of 2012. The Australian Charities and Not-for-profits Commission Regulation 2013, which sets out details of what will appear on the ACNC register, was also registered on 5 March 2013.
- Non-financial reporting will start on 1 July 2013, with respect to the 2012/13 financial year, (with the first information statements due by 31 December 2013, or 30 June 2014 if an SAP applies). A draft Annual Information Statement (AIS) and guide was released by the ACNC on 13 March 2013.
- Financial reporting (medium and large entities only) will start from 1 July 2014, with respect to the 2013/14 financial year (with the first financial reports due by 31 December 2014, or 30 June 2015 if an SAP applies). Draft Regulations were issued on 17 December 2012 for consultation.
- The new governance regulations were 'made' on 1 March 2013, but have not yet passed all stages of the Parliamentary scrutiny process. Once finalised, they include five key governance standards which will apply from 1 July 2013 (subject to transitional relief).
'In Australia' and other special conditions
- Tax Laws Amendment (Special Conditions for Not-for-profit Concessions) Bill 2012 introduced on 23 August 2012, but has not yet passed the HOR, and it is unclear when it will come back on for further debate.
- Will eventually apply from Assent.
Statutory definition of 'charity'
- Exposure draft legislation released on 8 April 2013
- Statutory definition to apply from 1 January 2014.
Unrelated commercial activities (UCAs)
Has been announced that the proposed rules will now only apply as follows:
- UCAs commenced after 7.30pm (AEST) on 10 May 2011 – from 1 July 2014;
- UCAs commenced before 7.30pm (AEST) on 10 May 2011 – from 1 July 2015.
No exposure draft legislation as yet.
Not-For-Profit Sector Tax Concession Working Group
- Membership and terms of reference announced on 12 February 2012
- Discussion Paper released on 2 November 2012.
COAG NFP Reform Working Group
- Formation and terms of reference announced on 13 April 2012. Will examine overlap between Federal and State laws and make recommendations to COAG for future reform.
- SA Government announced some 'harmonisation' amendments, as regards reporting and charitable collections, on 11 October 2012.
- COAG released a document entitled ‘Regulatory Impact Assessment of Potential Duplication of Governance and Reporting Standards for Charities’ (RIA) on 25 January 2013, for consultation.
- ACT Government announced changes to its associations and charitable collections laws on 11 March 2013.
- A Consultation Paper on the regulation of fundraising was released on 12 February 2012. No start date has been nominated at this stage.
- Assistant Treasurer announced on 18 October 2012 that the Government would develop a 'Consultation Code', which will be a practical guide to effective ongoing consultation within the NFP sector.
- The new Commonwealth Grant Guidelines issued in March 2013 contain provisions intended to support the 'report-once, use-often' reporting framework for entities registered with the ACNC.
- The Government introduced the Not-for-profit Sector Freedom to Advocate Bill on 13 March 2013.
- Consultation paper on Companies Limited by Guarantee expected in 2013.
- AASB expected to issue Exposure Draft relating to a new approach to when the income of NFPs should be booked.
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