Australia: Update on the Australian Charities and Not-For-Profits Commission (ACNC)

On 24 October 2011, the Australian Charities and Not-for-Profits Commission (ACNC) Implementation Taskforce launched a new website including updates on the reform process. In the May 2011 announcements for the 2011-12 Federal Budget, it was announced that the ACNC would be established to operate from 1 July 2012. A newsletter was also recently released by Treasury ( click here to view) showing a timeline of the reforms announced.

The ACNC Implementation Taskforce website can be accessed here.

A number of significant developments can be identified from the material on the website, and stimulus papers have been released for discussion to establish frameworks for the next stage of consultations:

Implications for Charities and Not-For-Profits

Currently, the ATO in its function as administrator of tax concessions determines the charitable status of organisations seeking to access concessions. From 1 July 2012, the ACNC will be responsible for determining the charitable and public benevolent institution status for all Commonwealth purposes, with the effect that the registration function is removed from the ATO.

The ACNC taskforce has provided a list of expected benefits ( click here to view) for the NFP sector arising out of the establishment of the ACNC.

In addition to considering the strategic and operational implications of the benefits identified, charities and not-for-profits should also consider the implications upon their activities, fundraising efforts and governance of having their financial and governance information readily accessible by the general public. The increased public scrutiny that is likely to result means that charities and not-for-profits will need to review and assess whether their internal governance and financial processes are in order to ensure that reputational risks are minimised.

Gadens Lawyers is monitoring the ongoing dialogue and discussion as to the reforms affecting this sector. We can assist charitable and not-for-profit organisations to navigate the reforms.

For more information, please contact:

This report does not comprise legal advice and neither Gadens Lawyers nor the authors accept any responsibility for it.