Australian Charities and Not-for-profits Commission Regulations, 08 March 2013

 The Australian Charities and Not-for-profits Commission Regulation 2013 and the Australian Charities and Not-for-profits Commission Amendment Regulation 2013 (No 1) have been registered on the Federal Register of Legislative Instruments.

Australian Charities and Not-for-profits Commission Register

The Australian Charities and Not-for-profits Commission Regulation 2013 (ACNC Regulation) specifies additional information that the Commissioner must include on the Australian Charities and Not-for-profits Commission (ACNC) Register.

The Register serves as a single source of public information on the not-for-profit (NFP) sector covered by the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act). It is maintained electronically by the ACNC Commissioner and includes specified information about each registered, and each formerly registered, entity.

The ACNC Act already requires the Commissioner to maintain certain information on the Register (s 40-5(1) of the ACNC Act). The ACNC Regulation adds the following types of information to the requirements, if the relevant conditions are satisfied:

• size of a registered entity, whether small, medium or large or a basic religious charity

• countries (other than Australia) in which the registered entity operates

• states and territories in which the registered entity operates

• other names by which the registered entity may be publicly known

• categories of benefit recipients

• annual reports and joint or collective reports

• date of establishment

• links to the registered entity’s website, and

• details of lodgement of reports with the ACNC.

The ACNC Regulation commences on 6 March 2013.

ACNC governance standards

The Australian Charities and Not-for-profits Commission Amendment Regulation 2013 (No 1) amends the above ACNC Regulation to specify the following governance standards:

• purposes and NFP nature of a registered entity — the entity must be able to demonstrate its

purposes and its character as an NFP entity, make this information public and act in accordance

with its purpose and character

• accountability to members — this only applies to entities that have members as defined in ITAA

1997 such as companies limited by guarantee and incorporated associations 

• compliance with Australian laws

• suitability of responsible entities — entities responsible for control and/or management of the

registered entity such as a trustee or director must not be disqualified from managing a corporation

or disqualified by the Commissioner, and

• duties of responsible entities — a registered entity must ensure that its responsible entities

comply with the duties as set out in this standard.

Registered entities must comply with these governance standards to become registered and maintain their registration under the ACNC Act. How an entity meets these standards may differ according to their size and circumstances. Guidance as to how to meet the standards will be released by the ACNC Commissioner.

This regulation commences on the later of the commencement day referred to in s 45-20 of the ACNC Act and 1 July 2013. Section 45-20 specifies that the commencement of the regulation begins on the earlier of the day that both Houses of Parliament resolve to approve the standards or the last day on which the regulation can be disallowed in either House (there is a 15 sitting day disallowance period).

Source: Australian Charities and Not-for-profits Commission Regulation 2013 (SLI No 22 of 2013), registered on the Federal Register of Legislative Instruments as F2013L00401 and Australian Charities and Not-for profits Commission Amendment Regulation 2013 (No 1) (SLI No 23 of 2013), registered on the Federal Register of Legislative Instruments as F2013L00402 on 5 March 2013.

Tax > Australian Tax Week > 2013 Tax Week > ISSUE 9, 8 March 2013