Welcome to our latest newsletter.

We comment on the following matters:

  1. New Director Identification Number requirement;
  2. Regulatory change for non-charity Deductible Gift Recipients;
  3. Governance Standard 3 status;
  4. Activities, related party transactions and general purpose accounts; and
  5. Support for charitable not-for-profit organisations as a result of COVID-19 impacts.

We trust you will enjoy the read.

Director Identification Number Registration

As from 1 November 2021 a new initiative for company directors (including directors of not-for-profit companies limited by guarantee) commences

Each director is obliged to have a Director Identification Number (director ID) which would be similar to an entity needing an ABN. That number will be unique to the director and apply whenever they occupy any position of director on any board. It will be attached to the director permanently, even if they are no longer a director, or if they change their name, or move interstate or overseas. Any Forms of Consent to act as Director should include a prompt that the director provide their Director Identification Number.

Relevant deadline dates are set out in the table below:

On or before 31 October 2021 By 30 November 2022
Between 1 November 2021 and 4 April 2022 Within 28 days of appointment
From 5 April 2022 Before appointment

Read more

Grace Brophy, Solicitor

Josephine Heesh, Partner

DGR regulatory changes

In September 2021, the Treasury Laws Amendment (2021 Measures No. 2) Act 2021 was passed which requires non- charity non-government deductible gift recipients (DGRs) to become registered charities from 14 December 2021.

Charity registration is an existing requirement for the majority of general DGR categories. The amendment extends this requirement to the remaining DGR categories, except for ancillary funds or DGRs that are specifically listed in tax law.

These changes form part of the DGR reform announced by the government in December 2017. They are designed to improve the consistency of regulation, governance and oversight of DGRs in order to uphold community confidence and trust in the sector.

For more information see Deductible gift recipient reform.

Schedule 1 to the Act amends the special conditions for 11 general (presently non-charity) DGR categories in Subdivision 30-B. Under these amendments, a fund, authority or institution seeking to rely (or relying) on any of these categories for DGR endorsement must be:

  • a registered charity; or
  • an Australian government agency; or
  • operated by a registered charity or an Australian government agency.

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Josephine Heesh, Partner

Governance Standard 3 comply with Australian law

In February 2021, the Federal Government proposed changes to the existing definition of the ACNC's Governance Standard 3 but after further consideration of a notice of motion to disallow the relevant Regulations the Government announced on 24 November 2021 that the changes would not be made.

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Josephine Heesh, Partner

Support for Not-For-Profits Impacted by COVID-19

Before his recent appointment as NSW Premier, Dominic Perrottet put his support behind charitable NFPs facing significant financial setbacks from COVID-19 restrictions.

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Grace Brophy, Solicitor 

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.