Due to delay in passing the required legislation, the Australian Charities and Not-for-Profits Commission will not be able to commence operations on 1 October 2012 as planned.
ACNC delayed
While the ACNC Bills were passed by the House of Representatives last week, the Senate is yet to consider them in detail. With the next sitting day being 9 October 2012, the Commission cannot officially proceed until at least that time.
There are also strong indications that the delay will be extended by debate on further amendments in the Senate.
The House of Representatives passed the Bills by a narrow majority, with some amendments. Important changes include:
- A ban on ‘gag clauses’ in regulations – NFPs must not be prevented from engaging in lawful political advocacy which ‘furthers, or is in aid of’ their purposes;
- Requirement for consultation to take place before regulations can be made on governance or external conduct standards; however, failure to do so does not invalidate a regulation, so the effectiveness of this amendment is doubtful;
- ‘Basic religious charities’ can now operate a DGR gift fund, institution or authority without losing basic religious charity status and their lesser reporting obligations. The gift fund must receive less than $250k in a financial year
- The Commission must accept Schools Assistance Act 2008 school financial reports in satisfaction of ACNC reporting requirements. This applies only until the end of the 2014-2015 financial year (or an equivalent substituted accounting periods), unless extended by regulation.
What this means for you
Even though the ACNC cannot officially begin operations yet, you should not assume that the delay will provide you with more time to comply. Organisations should proceed with their preparations for the ACNC in line with the transitional arrangements as advertised.
‘In Australia’ legislation – brief update
The ‘in Australia’ legislation is currently before the House of Representatives, but due to other agenda items, has not yet been debated. As with the ACNC Bills, further developments are unlikely until at least 9 October 2012, when the Parliament sits again.
For advice about the legislation specific to your or your organisations’ situation, feel free to call us on (07) 3837 3600.
Disclaimer: This update provides an overview only of the new legislation, and is not all inclusive. It should not be considered to be legal advice. You should obtain legal advice for your specific circumstances before relying on general information.