As we advised in previous alerts, the ACNC regulation is
continuing to roll out.
2014 Annual Information Statements
Through the discussion paper along with the commentary provided
more generally by the ACNC, we understand the intention in
developing the 2014 AIS is:
To provide relevant updated information to the public in
relation to their needs regarding the Registered Entity.
For the registered entity to confirm compliance with their
obligations under the Act and
To provide relevant information to the ACNC to enable it and
the ATO in respect to the identification of risks which require
appropriate recognised assessment activities to be undertaken.
In this context, we have provided in our submission our views in
relation to the following proposed disclosure areas within the
Disclosure of related party information.
The alignment of disclosure of financial information in the AIS
and the requirements under the draft financial reporting
The disclosure of specific details regarding Reserves.
The relevance of the reporting of business activities.
In summary, we recognise the need for ACNC to gather information
in a consistent and comparable manner and we have provided them
with some alternative approaches within our submission.
We are supportive of the inclusion of optional questions to
allow Registered Entities to satisfy their other governmental
requirements providing the ACNC work closely with the States to
ensure consistency in requests for information and that all
information can be provided in the most cost effective manner for
the Charities themselves.
We highlighted the need for the ACNC to be mindful of the
content of the AIS. The AIS forms part of the information which at
this stage is intended to be publicly available on the ACNC
register. It may be prudent to restrict certain information from
publication where it may result in misinterpretation.
The Government has stated that it intends to introduce the Bill
into Parliament in the Winter sitting which commences next
It is anticipated that as the first week of the sitting will be
focused on the budget, the Bill may be introduced in late May/early
We will keep you informed as it progresses through
We discuss whether certain clauses commonly found in ordinary commercial contracts could be considered to be penalties.
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