Welcome to our latest newsletter.
The upheaval of recent weeks has interrupted our ability to provide more timely updates for you on developments in the not-for-profit space. There have been several which we will summarise below:
- COVID relief packages for all businesses with revenue drops;
- Legislative concessions for conducting meetings, filing returns and witnessing document signing;
- Fundraising relief for New South Wales registered charities;
- Adjustment to size thresholds of registered charities;
- Addition of a sixth external conduct standard: consequence for basic religious charities.
Carroll & O'Dea Community & Association's Team
COVID Relief Packages
The Federal Government recognises the important work of not-for-profit entities in providing support to the greater Australian community. As part of the second stimulus package, economic support is available for Australia's charities and not-for-profit sector.
Legislative Concessions for Conducting Meetings
On 13 August, 2021 the Commonwealth Treasury Laws Amendment (2021 Measures No.1) Act 2021 received assent. It gives directors across Australia will have greater freedoms in conducting business during the pandemic. The Bill amends the Corporations Act so that:
- companies will be able to execute company documents electronically;
- company meetings (including AGMs) will be able to be held virtually by electronic means;
- companies may send notices of meetings to shareholders through electronic communications or by providing sufficient information to allow the recipient to access the notice electronically
It must be noted however, that these changes will only be in effect until 31 March 2022.
Ben Zmeshkal, Law Clerk
Fund Raising for New South Wales Registered Charities
In order to reduce regulatory burden, Fair Trading is streamlining application and reporting requirements for organisations registered with the ACNC. On 1 July 2021, the Charitable Fundraising Amendment Act 2018 came into effect. The most notable change was that registration with the ACNC would be sufficient for a charity to be granted an authority to fundraise in NSW. Other changes have included aligning reporting requirements with the ACNC and eliminating the need for large charities to report to both the ACNC and NSW Fair Trading.
Adjustment to Size Thresholds of Registered Charities
In an effort to facilitate the efficient operation of Australian charities, the Australian Government announced the easing of financial reporting obligations. The new reforms will result in lifting of financial thresholds for small and medium charities registered with the ACNC, which will in turn allow over 5,000 charities to redirect their funds to assist Australians in need.
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.