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ACNC Information Paper 1 Uniting Church in Australia Qld Synod

Page 2 UCAQG&L_130415v2

10.4 What is a “charity”? ...................................................................................................... 16

10.5 What is a “type” and “subtype”? ................................................................................... 16

10.6 What is a “Responsible Entity” and who is a “Responsible Person”? ......................... 18 11 Record Keeping Requirements ................................................................................................ 19

12 Reporting Requirements ........................................................................................................... 20

12.2 Information Statements (Annual) ................................................................................. 20

12.3 Financial Reporting (Annual Financial Reports) .......................................................... 21

12.3.11 Am I a basic religious charity? ....................................................................... 23

12.3.12 Am I a small, medium or large registered entity? .......................................... 23

12.3.13 What counts as “Revenue”? .......................................................................... 24

12.3.14 Australian Accounting Standards requirements ............................................ 25

12.3.15 Am I a public company limited by guarantee? .............................................. 25

12.4 Grouping for reporting purposes .................................................................................. 26 12.5 Ongoing Reporting – Duty to Notify ............................................................................. 26

12.5.1 What is “significant”? ..................................................................................... 27

12.6 ACNC Information Requests ....................................................................................... 27

13 ACNC Register ......................................................................................................................... 28

14 Governance Standards ............................................................................................................. 30

14.10 The 5 Governance Standards ...................................................................................... 30

15 External Conduct Standards ..................................................................................................... 33

16 Connection with other regulators and government departments? ........................................... 34

16.1 ACNC and the ATO ..................................................................................................... 34

16.2 ACNC and ASIC .......................................................................................................... 34

16.3 ACNC and ORIC .......................................................................................................... 34

16.4 ACNC and DoHA ......................................................................................................... 35

16.5 ACNC and DEEWR ..................................................................................................... 35

APPENDICES

Appendix 1 : How do find out if my …….. is ACNC registered? ....................................................... 36

Appendix 2 : Not-for-Profit Tax Concessions & Basic Eligibility Criteria........................................... 39

Appendix 3 : ATO’s “What is a charity?” Case Law Summary ......................................................... 41

Appendix 4 : Draft “charity” definition ................................................................................................ 42

Appendix 5 : Draft potential replacement subtypes .......................................................................... 43

Appendix 6 : Australian Accounting Standards Financial Reporting Requirements Summary ........ 44

Appendix 7 : Corporations Act 2001 (Cth) Disqualification ............................................................... 45

Appendix 8 : Sample 2013 Annual Information Statement ............................................................... 46

Appendix 9 : Key Terms .................................................................................................................... 50

Appendix 10 : About your charity details letter ................................................................................... 53

Appendix 11 : ACNC Form AB Confirm your registered charity details.............................................. 55

Appendix 12 : ACNC Congregational/Church Decision Tree ............................................................. 59

Appendix 13 : Reference Materials ..................................................................................................... 61

Appendix 14 : Endnotes ...................................................................................................................... 62


UCAQG&L_130415v2 Page 3

ABOUT THIS INFORMATION PAPER This information paper is designed as a guide only for use within the Uniting Church in Australia Queensland Synod. It summaries the position at the date of the information paper regarding the new Australian Charities and Not-for-profits legislative regime which commenced on 3 December 2012. It provides some very basic instruction for use within the church. It also highlights a number of areas currently not yet finalised by the legislators and regulators, as well as practical application issues in relation to which the Governance and Legal Team is currently engaging with the Australian Charities and Not-for-profits Commission (ACNC), our new regulator. It is not intended for use as a comprehensive legal guide. Specialist legal advice may be required for particular circumstances. It is intended that further ACNC Information Guides may be published by the Governance and Legal Team as further information becomes available and policy and legislature is settled. In the meantime, there is a lot of information available on the ACNC’s website – www.acnc.gov.au. Questions regarding this information can be directed to Anne Osborne, Governance and General Counsel at [email protected]. 15 April 2013



QUICK GUIDES

1 What to do (in order) What Where/How When 1 Check to see if your entity received an

ACNC letter your letter should look like the one in Appendix 10 at page 53

2 Check if your entity is listed on the ACNC Register

follow the steps in Appendix 1: How do find out if my …….. is ACNC registered? at page 36

NOW

3 If it is not listed on the ACNC Register and you think it should be contact the Governance and Legal Team

by email to: [email protected]

4 Find out when your entity’s financial year ends

5 Think about who your responsible people might be

refer to section 10.6 What is a “Responsible Entity” and who is a “Responsible Person”? at page 18

6 Check if they are still prepared to be a responsible person – i.e. give them this paper to read through check if they prepared to have their

name listed on the ACNC Register check if they they are “disqualified”

under the Corporations Act check if they will they be able make

declarations relating to their duties

refer to Appendix 7: Corporations Act 2001 (Cth) Disqualification at page 45

refer to item 5 Duties of Responsible Entities in the governance standards table at section 14.10.4 in The 5 Governance Standards at page 31

7 Appoint an Australian Taxation Office (ATO) authorised contact person for your entity

ask [email protected] for a pre-completed ATO authorised contact form

8 Gather the information likely to be required for your entity’s 2013 Annual Information Statement (AIS) – in case your entity needs to complete & lodge one

look at the sample 2013 AIS in Appendix 8 at page 46

9 If you have questions, or don’t understand something

contact the Governance and Legal Team – preferably by email: [email protected]

NOW & AT ANY TIME

IN THE FUTURE

10 Provide the Governance and Legal Team with information about your entity, including responsible persons

use the UCAQ/ACNC About your Entity Form currently being developed when the

forms are available –

VERY SOON!

11 Appoint an ACNC Agent use the pre-filled UCAQ/ACNC Agency Form

12 Get every responsible person for your entity to make a Responsible Person Declaration

use the UCAQ/ACNC Responsible Person Declaration Form

13 Get every responsible person for your entity to make a standing Conflicts Declaration

refer to the Conflicts Policy use the Conflicts – Initial Standing Declaration Form

when the policy and form are available



2 What not to do – why?

1 Don’t fill in the ACNC form and/or post it back to the ACNC – as we are arranging bulk notification and clarifying some of the information sought

2 Don’t provide the ACNC with the information they seek through their online portal – as we are arranging bulk notification and clarifying some of the information sought

3 Don’t ignore anything on the What to Do list

3 What does the ACNC mean for me?

basic religious charity

see 12.3.11 at page 23

charity – ACNC registered due to

start

information

paper small entity

medium entity

large entity sect-

ion pg

see 12.3.12 at page 23

able to claim tax concessions

× if ATO endorsed

if ATO endorsed

if ATO endorsed

if ATO endorsed

2 Dec 12/13

9 12

record keeping standards

× now 11 19

ACNC Register × now 0 28

reporting standards ×

annual information statements (AISs) ×

but non-financial portion

only

but not as much info as

medium & large

2012/13 FY

12.2 20

annual financial reports – reviewed

× × × × 2013/14 FY

12.3 21

annual financial reports – audited

× × × optional 2013/14 FY

12.3 21

ongoing reporting × 12.5 26

other reporting (ACNC requests)

× now 12.6 27

governance standards

× × 1 Jul 13

14 30

governing rules × 10.3.6 15

external conduct standards

×

if send funds or

engage in activities outside

Australia

if send funds or


Australia

if send funds or


Australia

if send funds or


Australia

1 Jul13

0 33

ACNC can suspend or remove a member of the entity’s governing bodyi

× × now



4 Questions and Answers 4.1 How did the ACNC get my details – why did I receive a letter from the ACNC?

4.1.1 If your organisation was endorsed by the ATO:

(a) for charity tax concessions;

(b) as income tax exempt because it is a charitable institution;

(c) as income tax exempt because it is a charitable fund established by a will;

(d) as income tax exempt because it is a charitable trust;

(e) as a Health Promotion Charity (HPC) for Fringe Benefits Tax (FBT);

(f) as a deductible gift recipient (DGR) as a HPC;

(g) for the operation of a DGR fund, authority or institution;

(h) as a public benevolent institution (PBI) for FBT; or

(i) as a DGR as a PBI,

by the ATO your details were provided to the ACNC by the ATO.

4.1.2 This is why you received:

(a) a letter which looks like the letter in Appendix 10: About your charity details letter at page 53; and

(b) a form which looks like the form in Appendix 11: ACNC Form AB Confirm your registered charity details at page 55.

4.2 Am I registered with the ACNC – do I need to be?

4.2.1 If you received a letter which looks like the Appendix 10 letter at page 53, then:

(a) the entity to whom it was addressed (see the circled bit on the letter in the appendix) is already registered with the ACNC as a Charity; and

(b) the ACNC believes that the address to which it should send future correspondence is the address on the letter (see the boxed bit on the letter in the appendix).

4.2.2 If your entity did not receive a letter like the Appendix 10 letter at page 53, then you

should check to see if your entity is registered with the ACNC anyway – by following the steps in Appendix 1: How do find out if my …….. is ACNC registered? at page 36.

4.2.3 If your entity is not registered with the ACNC you should work out whether it needs to

be – by using the Appendix 12: ACNC Congregational/Church Decision Tree at page 59.

4.2.4 If you:

(a) think your entity should or needs to be registered with the ACNC;

(b) would like to register your entity with the ACNC anyway; or

(c) need help using the decision tree,

contact the Governance and Legal Team.



4.3 What do all these weird new words and terms actually mean?

4.3.1 The ACNC regime introduces a whole new language.

4.3.2 The Governance and Legal Team has attempted to list them all in Appendix 9: Key Terms at page 50.

4.3.3 If you can think of another key term which is not in this list, please let the Governance

and Legal Team know via email to [email protected] so they can add it.

5 What the Qld Synod is doing and why 5.1 Putting together tools for your use

5.1.1 The Governance and Legal Team is currently putting together the following ACNC tools:

(a) a list of UCAQ/ACNC About your entity Form, which is likely to include:

(i) your entity’ activities/functions;

(ii) completing all columns;

(iii) telling us what your financial year end is;

(iv) telling us what sort of financial reports you currently produce;

(v) telling us what other names you operate under;

(vi) for each of your responsible persons, telling us their:

(A) full name;

(B) other names by which they are known or have been known (i.e. maiden names, former married names, aliases, former legal names);

(C) residential address;

(D) date of birth;

(E) contact telephone number; and

(F) contact email;

(b) UCAQ/ACNC Agency Form;

(c) UCAQ/ACNC Responsible Person Declaration;

note that if a responsible person cannot, will not or is not prepared to make the declarations contained in this declaration, they cannot be a responsible person

(d) Conflicts Policy;

(e) Conflicts – Initial Standing Declaration Form;

(i) for use by all existing council, committee, commission and board members prior to provision of their name to the ACNC; and

(ii) for use by all new council, committee, commission and board members;

(f) Conflicts – Once-Off Declaration Form;

(g) Conflicts – Annual Refresh Standing Declaration Form; and

(h) further ACNC Information Papers and other communications as required.



5.2 Monitoring

5.2.1 The Governance and Legal Team is currently monitoring the following ACNC related matters for developments:

(a) adoption of and/or changes to the proposed statutory definition of “charity” (see 10.4.5 to 10.4.8 at page 16);

(b) whether the ACNC is given power to regulate not-for-profits other than charities (see 7.3 and 10.5.10 at pages 11 and 17);

(c) adoption of and/or changes to the proposed replacement subtypes (see 10.5.11 to 10.5.17 at page 17);

(d) the outcomes of the public consultation period regarding annual information statements (see 12.2.11 at page 21);

(e) for any announcements regarding the 2013 AIS (see 12.2.11 at page 21);

(f) progress through parliament of ACNC Regulation 1 which contains the proposed new governance standards (see 14.10 to 14.8 at page 30);

(g) any changes or additional requirements in relation to the contents or format of financial reports (see 12.3.10 at page 23); and

(h) developments in relation to Australian Accounting Standard AASB 1053 in relation to general purpose financial reports (see 12.3.14.6 at page 25).

5.2.2 The Governance and Legal Team is also currently:

(a) working with the ACNC to enable bulk notification of all required information;

(b) considering what, if any changes might be required to any or all of the church’s governing rules (see 10.3.6.3 at page 16); and

(c) working with the ACNC to enable bulk notification and automatic approval for any required substituted accounting periods (see 12.2.9 at page 21).

5.3 Trying to figure out (with ACNC’s assistance for some)

1 Which of our activities/functions are an “Entity”

2 Which of our activities/functions need to be registered as separate entities – do we need to break out some our groups of activities/functions which are currently covered by a single Australian Business Number (ABN)?

where do Mens Sheds fit in

where do thrift shops fit in

where do book shops fit in

child care activities linked to UCQ or WMB (which are PBIs)

child care activities linked to schools

child care activities linked to congregations

3 The most appropriate way to provide clarity regarding the not-for-profit nature of the church’s entities (see 10.3 to 10.3.6 at pages 14 to 15 regarding this)

4 If the “Synod” is an entity – does this mean that we need to include all 400+ members (which change every 18 months) as responsible persons – or can we use the Synod Standing Committee as the equivalent of an “executive team”, or the General Secretary or the Moderator?

5 For each congregation – same as for question 4 – however more pronounced as membership changes multiple times during the course of a single day and limited records are kept and “membership” is not even defined



6 How do we deregister if the entity is no longer in existence and we are unable to locate any of the previous contact people for it?

7 What to do for those of our clusters which have an ABN on their own which is different to, or in addition to the ABNs held by one or more of its member congregations?

8 If it appears that a subtype applies to an activity/function/group/association – do we have to register it as a subtype, or it is optional? – i.e.

for example - is there a materiality/trigger point for when something becomes large enough it needs to be registered in its own right?

9 If financial reporting is not required (eg – basic religious charity or small entity) and the financial year end is not 30 June – do we need to ask ACNC for a substituted accounting period?

10 Is an agent a responsible person/entity?

11 Can we use a designated position for the agent?

12 How do we deal practically with the issue that currently the ACNC says it requires an agency authority each time an interaction with the ACNC occurs by an agent?

can we simply have a standing agency appointment – in the same way that the Australian Securities and Investments Commission (ASIC) allows for the appointment of registered agents (which then apply continuously for all actions performed by the agent – until the agency is revoked & ASIC notified)

13 Form AA – Question 2 – asks for the “legal name” – the ABN name is not always a legal name

14 Is there any update on when the subtype area of the ACNC Register will be live so we can check what has been applied?

15 When/what is the chance that a regulation might come under s40-10(3) – as noted in paragraph 4.37 of the amended explanatory memorandum – regulations could prescribe that certain classes of information should not be published on the ACNC Register where the information could significantly overburden a charity with administrative costs of responding to members of the public?

this could become critical for us – as we simply don’t have the resources to deal with the potential volume of enquiry etc which may come (bearing in mind we have 100s of entities & each entity will have multiple responsible people)

16 Whether there is some way we can streamline ATO endorsement for income tax exemption for ACNC registered charities which are also registered as subtype 2 “advancement of religion” which were previously able to self-assess themselves as being exempt?

17 Which is the date by which application/notification to the ACNC must have been made regarding a substituted accounting period – ACNC communications state 3 June 2013, whilst the ACNC (C&T) Act says it is 30 June 2013?

5.4 Questions for determination by the Church

5.4.1 The General Secretary, Moderator, Director of Finance and Property Services and the Governance and Legal Team are identifying questions which the church will be required to make decisions about.

5.4.2 The questions identified so far are:

(a) what does the church consider an “entity” to be?

(b) what are the attributes that define a church activity, function and/or service as being an “entity”?



(c) if a church entity is not required to produce financial reports and lodge them with the ACNC, does the church want to:

(i) choose to provide financial reports to ACNC anyway – in which case the ACNC financial reporting requirements, including audit/review will need to be met; or

(ii) choose to self-report for example via our website (in which case the ACNC financial reporting requirements such as reviews/audits will not apply);

(d) if the answer to either 5.4.2(c)(i) or (ii) is “yes”:

(i) which entities will this apply to; and

(ii) when will we start the financial reporting;

(e) does the church wish to self-comply in relation to the governance standards for basic religious charities; and

(f) does the church want to do “group” or “collective” reporting for any, some or all of its entities.

6 Key Dates

3 Dec 12 ACNC commenced

the retrospective date that will be applied for ACNC registration for entities which:

were automatically registered (via the ATO); and

“opt-in” by 3 December 2013

2 Jun 13 date by which an entity must “opt-out” in order to avoid having to comply with the ACNC requirements

note – this will trigger a loss of tax concessions retrospectively from 2 December 2012

3 June 13

or 30 Jun 13

date by which an entity must apply/notify the ACNC regarding a substituted accounting period – relevant for the 2013 AIS (if it is required)

3 Dec 13 date by which an entity needs to be registered with the ACNC in order to be treated as having been registered since 3 Dec 12 (to keep tax concessions)



BACKGROUND INFORMATION

7 About the ACNC 7.1 ACNC is the short name for the ‘Australian Charities and Not-for-profits Commission’. 7.2 The ACNC was established on 3 December 2012 by a Commonwealth Act of Parliament

called the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act). 7.3 The ACNC is the new regulator for charities. It has not been given the function of regulating

all not-for-profits, although the ACNC expects that it will in the future be given this powerii. 7.4 The ACNC’s stated objectives are to:

maintain, protect and enhance public trust and confidence in the sector through increased accountability and transparency;

support and sustain a robust, vibrant, independent and innovative not-for-profit sector; and

promote the reduction of unnecessary regulatory obligations on the sector. 7.5 The ACNC:

registers entities as charities; maintains a free searchable public register (see section 13 ACNC Register at page

28) at page 28);

provides information, guidance, advice and other support to charities to help them understand and meet their obligations; and

is working with federal, state and territory governments and departments and agencies to attempt to develop a reporting framework which enables charities to report once.

8 ACNC Registration 8.1 Registration with the ACNC is not compulsory – it is voluntary. 8.2 At the moment, only a charity can be ACNC registered. 8.3 A charity can also choose not to be ACNC registered. 8.4 BE WARNED – if your organisation is a charity and it is not registered with the ACNC

(or does not register by the due date) it loses the ability to claim certain benefits including:

(a) tax concessionsiii (see section 9 Tax Concessions at page 12); and

(b) some government grants/funding (see section 16 Connection with other regulators and government departments? at page 34).

8.5 To find out of your organisation is already registered as a charity with the ACNC, follow the

steps at Appendix 1: How do find out if my …….. is ACNC registered? at page 36. 8.6 To be registered with the ACNC there are some pre-requisite conditions – all of which must be

met. See section 10 ACNC Registration Conditions at page 13 for these conditions. 8.7 If the ACNC is given power to regulate other not-for-profits, those other not-for-profit

organisations can also choose whether or not to be ACNC registered.



9 Tax Concessions 9.1 Not-for-profit organisations (see 10.3 What is a “not-for-profit”? at page 14) may be able to

claim any one or more of the following tax concessionsiv:

(a) income tax exemption

(b) fringe benefits tax (FBT) concessions:

(i) FBT exemption for ACNC registered public benevolent institutions (PBIs) & heath promotion charities (HPCs) - $30,000 per employee

(ii) FBT exemption for public & non-profit hospitals and public ambulance services - $17,000 per employee

(iii) FBT rebate for certain non-government, non-profit organisations – 48% of gross FBT capped at $30,000 per employee

(iv) for religious institutions – for benefits paid to religious practitioners, live-in carers and domestic employees

(v) for non-profit companies which care for the elderly or disadvantaged people – for benefits paid to live-in carers

(c) deductible gift recipient (DGR) status

(d) goods and services tax (GST) concessions

(i) for ACNC registered charities, gift deductible entities and governments schools

(ii) for non-profit organisations

(e) franking credit refunds – for DGRs & endorsed income tax exempt entities 9.2 The Federal Government is, via a working group, currently reviewing all of these tax

concessions, eligibility and availabilityv. 9.3 Eligibility for any one or more of these tax concessions is dependent upon the type of

organisation and/or activity. Availability requires either ATO endorsement or self-assessment. Eligibility and availability are in some instances co-dependent.

9.4 Charities that are not registered with the ACNC (or do not register by the due date) are no

longer able to claim any of these tax concessions or ‘self-assess’ themselves as being able to claim them.

9.5 Appendix 2 at page 39 outlines the current tax concessions and basic eligibility criteria.



10 ACNC Registration Conditions 10.1 The prerequisite conditions an organisation must meet to obtain and maintain

ACNC registration are all of the belowvi: (see Information Paper)

(a) be an entity section 10.2 What is an “entity”? at page 13

(b) be a not-for-profit section 10.3 What is a “not-for-profit”? at page

14

(c) be a charity section 10.4 What is a “charity”? at page 16

(d) have an Australian Business Number (ABN)

(e) if registering as 1 or more subtypes: (i) be ACNC registered as a ‘charity’ type (ii) meet the subtype description/s

section 10.5 What is a “type” and “subtype” at

page 16

(f) comply with the governance standards that apply to it section 14 Governance Standards at page 30

(g) comply with the external conduct standards that apply to it

section 15 External Conduct Standards at

page 33

(h) not be engaged in or support terrorist or other criminal activities

10.2 What is an “entity”?

10.2.1 The ACNC Act defines an “entity” to be any of the following:

ACNC Act “entity”vii UCAQ Note – includes:

(a) an individualviii

(b) a body corporateix ASIC registered company

Incorporated Associations - eg: PMSA

entities established under State, Territory or Federal legislation or instrument (includes letters patent) – eg: The Uniting Church in Australia Property

Trust (Q.) Schools Residential Colleges

(c) a body politicx

(d) an unincorporated associationxi

partnership – whether formally documented or not

service activities/functions of the church

the whole of the church

parts of the church – eg: UnitingCare Qld WMB

NB: does not include an ATO recognised non-entity joint venture



ACNC Act “entity”vii UCAQ Note – includes:

(e) an unincorporated body of personsxii

presbyteries

congregations

church councils

faith communities

NB: does not include an ATO recognised non-entity joint venture

(f) a trustxiii anything established by a trust deed – eg: Uniting Church Foundation

an implied trust – i.e. nothing formal ever documented

(g) the trustee of a trustxiv a corporate trustee

the group of individuals who together act as the trustee of a trust

any charity that has an ABN has to fall somewhere into one of the above

10.2.1 What is a “registered entity”?

10.2.1.1 A registered entity is simply an entity that is registered with the ACNC.

10.2.2 What about “responsible entity”?

10.2.2.1 The ACNC considers that a responsible entity is the governing body of an entity.

10.2.2.2 Further information about who and what a responsible entity is, is contained

at section 10.6 What is a “Responsible Entity” and who is a “Responsible Person”? at page 18.

10.3 What is a “not-for-profit”?

10.3.1 The ACNC Act does not define what “not-for-profit” is.

10.3.2 Via its websitexv, the ACNC states that:

Generally, a not-for-profit is an organisation that does not operate for the profit, personal gain or other benefit of particular people. This can include people such as its members, the people who run it or their friends and relatives.

An organisation does not fail to be a not-for-profit if it simply provides a benefit to a member while genuinely carrying out its purpose.

For example, the provision of counselling services by a self-help group for young parents to a young parent who is a member of the organisation and in need is acceptable.

Not-for-profits can make profit, but any profit made must be applied for the organisation’s purposes.



10.3.3 The Australian Taxation Office (ATO) also provides guidancexvi, which is referred to by the ACNC, on what a non-profit organisation is:

A non-profit organisation is an organisation that is not operating for the profit or gain of its individual members, whether these gains would have been direct or indirect.

A non-profit organisation can still make a profit, but this profit must be used to carry out its purposes and must not be distributed to owners, members or other private people.

10.3.4 Both the ACNC and the ATO state that they accept that an organisation is “not-for-

profit” if its constituent/governing documents contain clauses such as:

(a) the non-profit clause ‘The assets and income of the organisation shall be applied solely in furtherance of its above-mentioned objects and no portion shall be distributed directly or indirectly to the members of the organisation except as bona fide compensation for services rendered or expenses incurred on behalf of the organisation’.

(b) the dissolution clause ‘In the event of the organisation being dissolved, the amount that remains after such dissolution and the satisfaction of all debts and liabilities shall be transferred to another organisation with similar purposes which is not carried on for the profit or gain of its individual members.’

that prevent the organisation from distributing profits or assets for the benefit of particular people – both while it is operating and when it winds up.

10.3.5 It is of note that a benefit can be:

(a) direct (such as distributing money or gifts to a member); or

(b) indirect (such as a member receiving assistance from the organisation).

10.3.6 Governing Rules/Governing Documents/Constituent Documents

10.3.6.1 The ACNC Act defines the governing rules to be the written rules of the entity thatxvii:

(a) govern the establishment or operation of the entity; and

(b) can be enforced against the entity.

10.3.6.2 In relation to the Uniting Church in Australia Queensland this includes:

(a) The Uniting Church in Australia Act 1977 (Qld);

(b) the Basis of Union;

(c) the Constitution;

(d) the Regulations;

(e) by-laws;

(f) constitutions;

(g) charters;

(h) possibly written policies and process; and

(i) possibly:

(i) resolutions of the Assembly;

(ii) resolutions of the Synod;

(iii) resolutions of the Synod Standing Committee; and



(iv) resolutions of the various councils, committees, commissions and boards,

by which a change to any of the other documents has been agreed but not yet incorporated.

10.3.6.3 The Governance and Legal Team is currently considering what are

“governing rules”. It is also aware that the governing rules for some entities within the church may not be completely clear in relation to their not-for-profit nature, and is currently determining an appropriate solution. Further guidance will be provided in the future.

10.4 What is a “charity”?

10.4.1 There is no statutory definition of charity either in the ACNC Act or any other Australian Act.

10.4.2 There is however a lot of case law (common law and equitable law made by decisions

of courts) regarding the types of things that courts consider in deciding whether an organisation is a charity.

10.4.3 The ATO has published, on its website, a good summary of the main indicators

determined by case law of what a charity is. This summary is reproduced in Appendix 3: ATO’s “What is a charity?” Case Law Summary at page 41.

10.4.4 Note that the ATO considers that:

(a) a social club run by a religious institution; and

(b) most clubs, societies and associations,

are not charities.

10.4.5 On 8 April 2013, the federal government released new draft legislation (Charities Bill)xviii which contains the first statutory definition of a charity. Appendix 4 at page 42 contains a ‘lay man’s version’ of the new definition.

10.4.6 If adopted into law the new definition will be used by the ACNC and ATO.

10.4.7 The proposed start date for the new statutory definition of charity is 1 January 2014.

10.4.8 Until a new statutory definition starts to apply, the current methods of deciding whether

an entity is a charity will continue.

10.4.9 The Governance and Legal Team (Qld Synod) is monitoring the progress of this draft legislation, including any amendments to it, and will provide updates if required.

10.5 What is a “type” and “subtype”?

10.5.1 There are 2 types of ACNC registration:

(a) types; and

(b) subtypes.

10.5.2 The type and subtype/s in respect of which an entity is registered with the ACNC are listed in the ACNC Register (see section 13 at page 28), which is available for viewing by the public.



10.5.3 The types and subtypes of ACNC registration currently available are:

ACNC Actxix UCAQ Note

Item Column 1

entity type

Column 2 corresponding subtype

1 Charity entity with a purpose that is the relief of poverty, sickness or the needs of the aged

2 entity with a purpose that is the advancement of education

3 entity with a purpose that is the advancement of religion

4 entity with a purpose that is beneficial to the community

5 institution whose principal activity is to promote the prevention or the control of diseases in human beings

Health Promotion Charity (HPC)

6 public benevolent institution PBI

7 entity with a charitable purpose described in section 4 of the Extension of Charitable Purpose Act 2004

provision of child care services

10.5.4 To be registered as a type and subtype, an entity must meet certain preconditions

(see 10 ACNC Registration Conditions at page 13).

10.5.5 Registration as a type only is possible.

10.5.6 Registration as a subtype only is not possiblexx. Registration as a type is required in order to register as a subtype.

10.5.7 Registration as more than 1 subtype is possible However, where the requirements of

subtypes conflict, it is not possible to register as both subtypesxxi. For example:

if the requirements of subtype 6 (public benevolent institution) are met, then it is not possible to also meet the requirements of the subtype 7 relating to the provision of child care servicesxxii.

10.5.8 It is possible to register with 1 subtype at a particular point in time and then register as

an additional subtype at a later point in timexxiii.

10.5.9 Registration as a type or subtype is at the entity level (see section 10.2 What is an “entity”? at page 13), which is the same as the current ATO registration processxxiv.

10.5.10 It is currently unclear whether an entity can be registered as one or more types.

However at the moment this is irrelevant, as there is only one type available for registration – Charity. This is because the ACNC is currently empowered only to regulate charities. The Governance and Legal Team (Qld Synod) are monitoring this situation and will provide updates if required.

10.5.11 On 8 April 2013, at the same time they released the draft Charities Bill, the federal

government also released additional new draft legislationxxv which expands, changes and renumbers the ACNC charity subtypes.

10.5.12 Appendix 5: Draft potential replacement subtypes at page 43 lists these potential

replacement subtypes, including their alignment to the existing subtypes.



10.5.13 If adopted into law the new subtypes will be used by the ACNC and ATO.

10.5.14 The proposed start date for the replacement subtypes is the same as the start date for the new statutory definition of charity - 1 January 2014.

10.5.15 Any charity already ACNC registered as 1 or more subtype/s will be transitioned

across to the new subtypes, which be applied retrospectively to the date of the original subtype registration.

10.5.16 Until the replacement subtypes start to apply, the current subtypes will continue.

10.5.17 The Governance and Legal Team (Qld Synod) is monitoring the progress of this draft

legislation, including any amendments to it, and will provide updates if required. 10.6 What is a “Responsible Entity” and who is a “Responsible Person”?

10.6.1 Before thinking about the governance standards, it is important to understand what a “responsible entity” actually is – because the use of the defined term “responsible entity” in the ACNC regime can be confusing.

10.6.2 The terms “responsible entity”, “responsible person” and similar terms are used in

various legislative regimes. Wikipedia actually says that the term responsible entity is a “peculiarly Australian invention”.

10.6.3 Some examples of the current use of the terms are:

Scheme Term Usage

ASIC responsible entity

managed investments – including superannuation, unit trusts etc must be a public company with an Australian Financial Services licence

responsible person relates to PDSs (prospectus)

responsible manager

key person relates to AFS licence

ATO responsible person individual judged to have a degree of responsibility to the general community – which differs according to the function of the entity involved

DETE (Qld) responsible person early childhood education & care

OLGC (SA) responsible person supervision of licenced (liquor) premises

HPW (Qld) responsible person something to do with plumbing & drainage

PBS responsible person person or corporation which is the supplier of a particular brand of a medicine on the PBS

Mental Health Act (Tas)

person responsible

Mater Hospitals (Qld)

responsible person the person to whom a patient is ‘handed over’ within 24 hours of a procedure under sedation or general anasthetic

Medicare (Cth) responsible officer



10.6.4 In most regimes it means different things, and the ACNC regime is no different.

10.6.5 The ACNC Act states that each of the following are a “responsible entity”xxvi:

(a) the director of a company which is ACNC registered;

(b) the director of a body corporate (company) which is ACNC registered;

(c) the director of any unincorporated association (company) which is ACNC registered;

(d) the director of any unincorporated body of persons (company) which is ACNC registered;

(e) a trustee of an ACNC registered trust; and

(f) the director of a trustee of an ACNC registered trust,

which includes:

(g) an individual who performs the duties of a director of an incorporated company; and

(h) a member of the committee of management of the “company” or an individual who performs the duties of such a member,

regardless of:

(i) the name given to the position of the person; and

(j) whether the person is validly appointed to occupy or perform the duties of the position.

10.6.6 The ACNC uses the term “responsible person” on some of its forms.

10.6.7 This term is not defined by the ACNC Act.

10.6.8 The ACNC, via its website, does however provide some guidance by statingxxvii that

‘responsible persons’ include all persons (or in some limited cases organisations) who are responsible for directing your charity, who are members of your governing body (including directors or committee members) or who are trustees (including insolvency trustees, administrators).

11 Record Keeping Requirements 11.1 The record keeping requirements apply to all ACNC registered entities. 11.2 Each ACNC registered entity must keep written financial recordsxxviii that:

(a) correctly record and explain its transactions (i.e. operations);

(b) correctly record and explain its financial position and financial performance;

(c) enable the preparation and audit of true and fair financial statements;

(d) enable ACNC assessment regarding the entity’s entitlement to registration;

(e) enable ACNC assessment regarding the entity’s compliance with the ACNC Act and any ACNC Regulations;

(f) enable ATO assessment regarding the entity’s compliance with any tax law; and

for 7 years after the transactions, operations or acts covered by the records are completed. 11.3 A failure to keep any of these records, even accidental failure, is an offence by the entity and

the entity’s responsible entity/responsible personsxxix. A fine of 20 penalty units (i.e. currently up to $3,400) per offence may be levied.



12 Reporting Requirements 12.1 There are 4 categories of reporting requirements under the ACNC Act:

(a) annual information statements (AISs) - see section 12.2 Information Statements (Annual) at page 20;

(b) annual financial reporting – see section 12.3 Financial Reporting (Annual Financial Reports) at page 21;

(c) duty to notify the ACNC of changes in certain circumstances (ongoing reporting) – see section 12.5 Ongoing Reporting – Duty to Notify at page 26; and

(d) duty to provide information to ACNC if requested by the ACNC – see section 12.6 ACNC at page 27.

12.2 Information Statements (Annual)

12.2.1 All ACNC registered entities must give an information statement, which the ACNC refers to as an AIS, to the ACNC each yearxxx.

12.2.2 The AIS will be made available to the public via the ACNC Register (see 13 ACNC Register at page 28).

12.2.3 The AIS must bexxxi:

(a) given in the form specified by the ACNC

(b) in relation to the entity’s financial year; and

(c) provided within 6 months of the end of the entity’s financial year.

12.2.4 The ACNC Act allows the ACNC to specify different forms for different types of entitiesxxxii.

12.2.5 The ACNC has released a public consultation paper in relation to AISs. In this

consultation paper, the ACNC states that in relation to AISs its intention is thatxxxiii:

(a) the 2013 AIS applies to financial years ending on or after 30 June 2013 (i.e. the current financial year in which we are in);

(b) registered charities will only be required to provide non-financial information to the ACNC in their 2013 AIS;

(c) from the 2014 AIS onwards, registered charities other than basic religious charities will be required to provide financial and non-financial information to the ACNC in their AIS;

(d) from the 2014 AIS onwards, small registered charities will not be asked to provide as much information as medium and large registered charities; and

(e) from the 2014 AIS onwards, basic religious entities will only be required to complete that section of the form which relates to non-financial information.

12.2.6 The AIS reporting requirements apply to the 2012-13 financial year (i.e. the financial

year for the entity, the first day of which falls during the period 1 July 2012 to 30 June 2013) onwardsxxxiv.

12.2.7 The ACNC has released a sample AIS for 2013, which is in Appendix 8 at page 46.



12.2.8 In relation to the 2014 AIS, on 13 March 2013, the ACNC released a public consultation paperxxxv, which includes the National Standard Chart of Accounts (NSCOA).

The NSCOA is a tool designed primarily for small to medium not-for-profits which typically do not have an accounting department or a sophisticated accounting system. Larger not-for-profits have adopted the data dictionary component of the standard chart of accounts aligning their systems to comply with a consistency across the sector. The NSCOA is a data entry tool and data dictionary. It is NOT a reporting tool.xxxvi

12.2.9 If an entity has a financial year other than 1 July to 30 June, it can apply to the ACNC

to adopt a substituted accounting periodxxxvii. For this to apply for the 2012-13 financial year (i.e. the 2013 AIS), the ACNC must be notified before 30 June 2013xxxviii.

NOTE that the Governance and Legal Team is currently working with the ACNC to enable bulk notification and automatic approval. Please do not apply for this separately – instead watch for further updates from the Governance and Legal Team.

12.2.10 If an entity was automatically registered with the ACNC (see Appendix 1: How do find

out if my …….. is ACNC registered? at page 36) and:

(a) required under another Australian law (such as the Schools Assistance Act 2008) to prepare financial reports for a period other than the financial year; and

(b) notifies the ACNC of this,

then the substituted accounting period is deemed to have been approved by the ACNCxxxix.

12.2.11 The Governance and Legal Team is monitoring ACNC announcements regarding the

2013 AIS and the outcomes of the public consultation process. Updates will be provided if required.

12.3 Financial Reporting (Annual Financial Reports)

12.3.1 The financial reporting requirements apply to the 2013-14 financial year (i.e. the financial year for the entity, the first day of which falls during the period 1 July 2013 to 30 June 2014) onwardsxl.

12.3.2 An entity can choose to voluntarily apply the financial reporting requirements for the

2012-13 financial year and provide a financial report to the ACNCxli.

12.3.3 An application/notification made to the ACNC to apply/allow a substituted accounting period in respect of the AISs automatically applies in relation to the annual financial reporting period.

12.3.4 The financial reporting requirements which apply to registered entities are dependent

upon whether the entity is a basic religious charity and the size of the entity.

12.3.5 Whether an entity is a basic religious charity can change from year to year – so this must be checked in respect of every financial year.

12.3.6 The size of an entity can also change from year to year – so this also must be

checked in respect of every financial year.



12.3.7 If an entity has a financial year other than 1 July to 30 June, it can apply to the ACNC to adopt a substituted accounting periodxlii. For this to apply for the 2013-14 financial year, the ACNC must be notified before 30 June 2013xliii.

12.3.8 The financial reporting requirements are:

registered entity financial reporting requirements

basic religious charityxliv

nil – unless “opt-in” and provide a financial report to the ACNC, in which case the requirements depend on the size of the entityxlv

NB: it is possible that the church may decide to either fully or partially opt-in (see 5.4.2(e) at page 10)

small entity nil

medium entityxlvi 1 prepare annual financial reports which meet requirements prescribed by regulation (refer to section 12.3.14 Australian Accounting Standards requirements at page 25)

2 have the annual financial reports either: (a) reviewed by a registered company auditor or

audit firm; or (b) audited by a registered company auditor or

audit firm in accordance with Australian Auditing Standards

3 if requested/required by the ACNC have the annual financial reports audited

4 obtain a review/audit report

5 obtain a written and signed declaration from the reviewer/auditor regarding compliance with applicable professional conduct standards

6 give the annual financial report and reviewer’s/auditor’s report to ACNC within 6 months of the entity’s financial year end

large entityxlvii 1 prepare annual financial reports which meet requirements prescribed by regulation (refer to section 12.3.14 Australian Accounting Standards requirements at page 25)

2 have the annual financial reports audited by a registered company auditor or audit firm

3 in accordance with Australian Auditing Standards

4 obtain an audit report

5 obtain a written and signed declaration from the auditor regarding compliance with applicable professional conduct standards

6 give the annual financial report and auditor’s report to ACNC within 6 months of the entity’s financial year end



12.3.9 The annual financial report and review/audit reports lodged with the ACNC will be made available to the public via the ACNC Register (see 13 ACNC Register at page 28).

12.3.10 At the date of this information paper, no regulations (either in draft or final form) have

been released which contain additional financial reporting requirements. The Governance and Legal Team will continue to monitor this and provide further information if required.

12.3.11 Am I a basic religious charity?

12.3.11.1 An entity is a basic religious charity (BRC) if it meets all of the below requirements, assessed on a financial year by financial year basisxlviii:

basic religious charity requirements (all must be met)

it 1 meets all of the ACNC registration conditions (see 10 at page 13)

it is 2 registered as a ‘charity’ type

3 registered as an ‘advancement of religion’ subtype

it could not be 4 registered as any other subtype

it is not 5 registered with ASIC (i.e. a proprietary limited, limited, limited by guarantee or listed company)

6 registered with the Office of the Registrar of Indigenous Corporations (ORIC) - i.e. an indigenous corporation

7 a Norfolk Island registered corporation

8 an incorporated association

it is not 9 endorsed by the ATO as a deductible gift recipient (DGR)

10 endorsed by the ATO to operate a DGR fund, institution or authority and the total revenue of those DGR funds, institutions and authorities is ≥ $250,000

11 part of an ACNC reporting group

it has not 12 received grants of > $100,000 in total from Australian government agencies (state, territory and federal) for the current or either of the 2 previous financial years

12.3.11.2 If a registered entity is a basic religious charity, its size is irrelevant.

12.3.12 Am I a small, medium or large registered entity?

12.3.12.1 Whether an entity (which is not a basic religious charity) is small, medium or large depends on entity’s revenue for the financial year:

registered entity size revenue for the financial year

smallxlix < $250,000

mediuml ≥ $250,000 and < $1 million

largeli ≥ $1 million



12.3.12.2 Whether an entity is small, medium or large can change each financial year, although the ACNC may continue to treat an entity as being of a particular size iflii:

(a) it was of that size last year; and

(b) although not of that size this year is likely to be of that size next year.

12.3.12.3 The ACNC Act states that revenue is to be calculated in accordance with

accounting standards in force at the time of calculation, even if those standards do not otherwise apply to the entityliii.

12.3.13 What counts as “Revenue”?

12.3.13.1 Australian Accounting Standard AASB 118, defines ‘revenue’ as meaning the:

‘gross inflow … arising in the course of ordinary activities of an entity…’

12.3.13.2 Revenue is a subset of income which includes revenue as well as

increases in economic benefits in the form of enhancements of assets or decreases of liabilities.

12.3.13.3 The ACNC provides the following examplesliv of what is likely to be revenue

and what is not:

revenue examples

government grants

other grants

donations

fundraising activities

bequests or legacies

fees and charges for the provision of services

sales of goods

interest earned

dividends, or similar distributions received

not usually revenue capital gains

unrealised gains (eg revaluations)

not revenue sales tax

goods and services tax

value added taxes

amounts collected by the charity as agent of another



12.3.14 Australian Accounting Standards requirements

12.3.14.1 The Australian financial reporting framework allows for 2 types of financial reportslv:

financial report type applies to requirement

(a) a general purpose financial report (GPFR)

reporting entities

full compliance with Australian Accounting Standards

(b) a special purpose financial report (SPFR)

non-reporting entities (eg most church entities)

not required to comply with Australian Accounting Standards (although usually partially comply)

12.3.14.2 The governing body of each entity decides the type of financial report to

present to its stakeholders, which may in some instances (for example, ASIC, ASX, providers of government grants) require GPFRs.

12.3.14.3 For annual reporting periods beginning on or after 1 July 2013, the new

accounting standard AASB 1053 applies to split general purpose financial reports into 2 sub-categorieslvi:

Tier 1 – full Australian Accounting Standards; and

Tier 2 – reduced disclosure requirements (RDRs).

12.3.14.4 Further information regarding the application of these new Tier 1 and Tier 2 general purpose financial reports is contained at Appendix 6: Australian Accounting Standards Financial Reporting Requirements Summary at page 44

12.3.14.5 There has been reference by the ACNC that it may require, via regulation,

that the financial reports (see section 12.3.8 at page 22) must comply with Accounting Standards issued by the Australian Accounting Standards Review Board. As the Australian Accounting Standards Board sets accounting standards only for general purpose financial statements, it is unclear whether, by virtue of this reference, charities which:

(a) are not required to produce financial reports under the ACNC Act; or

(b) currently produce special purpose financial reports,

may be required to produce Tier 2 general purpose financial reports.

12.3.14.6 The Governance and Legal Team will continue to monitor this matter and provide further information if required.

12.3.15 Am I a public company limited by guarantee?

12.3.15.1 It is of note that public companies limited by guarantee, which may include ACNC registered charities, must comply with the reporting requirements of the Corporations Act 2001 (Cth) having regard to 3 tiers:

Tier 1 – not a DGR and entity revenue < $250,000

Tier 2 – entity revenue is ≥ $250,000 and ≤ $1 million

Tier 3 – entity revenue is > $1 million

which are almost identical to the concept of small, medium and large registered entities.



12.4 Grouping for reporting purposes

12.4.1 The ACNC Act allows 2 or more registered charities to apply to the ACNC to allow them to submitlvii:

(a) a single AIS and single financial report – as a group; or

(b) 1 or more collective AIS and financial reports – on another basis, for example, activities.

12.4.2 Where this occurs, the size of the reporting entity islviii:

(a) large if 1 or more of the charities in the group is large;

(b) medium if 1 or more of the entities in the group is medium and none is large; or

(c) small if none of the charities in the group are medium or large.

12.4.3 It is important to note that if a reporting group is formed which contains more than 1 registered entity which retains its own ABN, then the reporting group and each of those entities which retain their ABN are disqualified from being a basic religious charity (see 12.3.11 Am I a basic religious charity? at page 23).

12.5 Ongoing Reporting – Duty to Notify

12.5.1 These record keeping requirements apply to all ACNC registered entities.

12.5.2 If any of the following occurs, the entity must notify the ACNClix:

Occurrence Reporting Timeframe

(a) the entity changes its name small registered entity - as soon as practicable and no later than 60 days after first becoming aware of the occurrence

medium and large registered entities – as soon as practical and no later than 28 days after first becoming aware of the occurrence

(b) the entity changes its address for service

(c)

there is a change in any responsible entity (see section 10.6 What is a “Responsible Entity” and who is a “Responsible Person”? at page 18)

(d) the governing rules are changed

(e)

there has been a significant breach by the entity of a provision of the ACNC Act and as a result the entity is no longer entitled to be ACNC registered as the type or subtype it is currently registered as

all registered entities - as soon as practicable after first becoming aware of the occurrence

(f)

there has been a significant breach by the entity of a governance standard and as a result the entity is no longer entitled to be ACNC registered as the type or subtype it is currently registered as

(g)

there has been a significant breach by the entity of an external conduct standard and as a result the entity is no longer entitled to be ACNC registered as the type or subtype it is currently registered as



12.5.3 Notification must be made using the appropriate ACNC formlx.

12.5.4 Multiple notifications can be included on the same formlxi.

12.5.1 What is “significant”?

12.5.1.1 In determining whether a breach is significant, the following matters are to be taken into accountlxii:

(a) the nature, significance and persistence of any breach; and

(b) the desirability of ensuring that contributions to the entity are applied consistency with the not-for-profit nature, and the purpose, of the registered entity,

where contributions include:

(c) the provision of money, property or any other benefit;

(d) the provision by an individual of his or her time or reputation;

(e) the provision by a government of tax concessions; and

(f) the provision by a government of other forms of support,

to the entity. 12.6 ACNC Information Requests

12.6.1 The requirement to comply with ACNC information requests applies to all ACNC registered entities.

12.6.2 The ACNC has the authority to require a registered entity to provide other

informationlxiii.

12.6.3 The ACNC must do this via a formal written noticelxiv.

12.6.4 If you receive a written notice requesting information from the ACNC, you should contact the Governance and Legal Team or your other external legal adviser to seek advice BEFORE providing any other information to the ACNC.



13 ACNC Register 13.1 One of the functions of the ACNC is the establishment and maintenance of a public register

known as the ‘ACNC Register’lxv. 13.2 The ACNC is required to maintain this register in electronic format and ensure it is available

for inspection on the internetlxvi. 13.3 The online ACNC Register can be accessed by following the steps in Appendix 1: How do find

out if my …….. is ACNC registered? at page 36. 13.4 The information contained within the ACNC Register is, or will be:

For each ACNC Registered Entity: current public

status

1 the entity’s name – NB the ACNC refers to this as the “legal name” on Form AB

available now 2 the entity’s ABN – including a link to its entry on ABN lookup

3 the state or territory in which the entity was registered

4 the ACNC registration type (see 10.5 What is a “type” and “subtype”? at page 16) for the entity

not yet available – ACNC says during

2013 this information will be

made available

5 each ACNC registration subtype (if any)

6 the date of effect of each ACNC type and subtype registration

7 the name and position of each “responsible person” (see 10.6 What is a “Responsible Entity” and who is a “Responsible Person”? at page 18) for the entity

8 the name of each “responsible entity” for the entity

9 the entity’s governing rules (see 10.3.6 Governing Rules/Governing Documents/Constituent Documents at page 15)

10 annual information statements given to the ACNC - if any (see 12.2 Information Statements (Annual) at page 20)

11 financial reports (including audit or review reports) given to the ACNC - if any (see 12.3 Financial Reporting (Annual Financial Reports) at page 21)

12 enforcement actions taken by ACNC – if any

13 the entity’s address for service

unknown if or when will be

publicly available

14 the position held by each “responsible entity” in relation to the entity (assuming that it is other than an individual)

15 any other information prescribed by regulations – which may be on a particular class basis

16 the date of birth of each “responsible person”

will not be publicly available

17 any other names by which the “responsible person” is known, or has been known

18 the residential address of each “responsible person”

19 the phone number of each “responsible person”

20 the email address of each “responsible person”



13.5 It is possible to request the ACNC tolxvii:

(a) not publish or remove commercially sensitive information which has the potential to cause detriment to the charity or an individual;

(b) not publish or remove information which could endanger public safety;

(c) correct or remove any information which is inaccurate, likely to cause confusion or likely to mislead the public;

(d) not publish or remove information which is likely to offend a reasonable individual; and

(e) not publish or remove information in any other circumstances which are prescribed by legislation.

13.6 The ACNC does not have to comply with a request to withhold information and it can only

withhold or remove information if decides that the harm that may be caused by publishing outweighs the public interest in publishing the materiallxviii.

13.7 There is reference in the Explanatory Memorandum to the potential for future regulations to

allow for the withholding or removal of information from the ACNC register where there are concerns that the information could ‘adversely affect the privacy of individual donors or significantly overburden a charity with the administrative costs of responding to members of the public’lxix.

13.8 The Governance and Legal Team will continue monitoring the status of the ACNC Register

and provide updates if required in relation to this.



14 Governance Standards 14.1 The governance standards will apply to all ACNC registered entities except basic religious

charities. 14.2 Note that this does not prohibit basic religious entities from choosing to ‘self-comply’ (refer to

5.4.2(e) at page 10). 14.3 The ACNC Act states that the governance standards may be specified by regulation which

may also vary the way in which they apply to a particular category of entitylxx. 14.4 Whilst the ACNC Act does appear to require public consultation in relation to the governance

standards, a specific section of the Actlxxi states that the requirement to undertake public consultation does not apply in relation to the governance standards.

14.5 The Australian Charities and Not-for-profits Commission Amendment Regulation 2013 (No. 1)

(ACNC Regulation 1) which contains the governance standards was tabled in both the House of Representatives and the Senate on 12 March 2013.

14.6 It is due to commence on the later of:

(a) the date the House of Representatives passes a resolution approving the ACNC Regulation 1;

(b) the date the Senate passes a resolution approving the ACNC Regulation 1; and

(c) 1 July 2013. 14.7 On 21 March 2013, a motion to disallow was made in the Senate. The motion is due to be

considered on 14 May 2013. If by 26 August 2013, the motion is not withdrawn or otherwise dealt with (i.e. the ACNC Regulation 1 is approved by the Senate) the ACNC Regulation 1 cannot become law.

14.8 The Governance and Legal Team (Qld Synod) is monitoring the progress of ACNC

Regulation 1 and will provide updates if required. 14.9 The remainder of this section 3 of the ACNC Information Paper 1 will only apply if ACNC

Regulation 1 comes into force. If ACNC Regulation 1 does not become law, the below requirements will not apply (unless they are reintroduced via new legislation in the future).

14.10 The 5 Governance Standards

14.10.1 There are 5 governance standards in ACNC Regulation 1.

14.10.2 These governance standards will apply to all ACNC registered entities except basic religious charitieslxxii.

14.10.3 Each governance standard is accompanied by the objective of the standard, the

requirements of the standard and interpretive notes.



14.10.4 The 5 governance standards, including their requirements and interpretive notes, contained within ACNC Regulation 1 are:

Standard & Requirements Interpretive Note

1 Purpose and not-for-profit naturelxxiii

(a) have and maintain a not-for-profit purpose and character

(b) be able to demonstrate – via the governing rules or otherwise – the purpose and character

(c) make information about its purpose, including:

members

donors

employees

volunteers

benefit recipients available to the public

if this information is publicly available via the ACNC Register (see 13 at page 28) or made available on request it is considered to be ‘available to the public’ (NB: this information will be gathered via the AIS which will be published on the website)

2 Accountability to memberslxxiv

(a) take reasonable steps to ensure accountability to members

could include

holding AGMs

providing members with an annual report, including financial information and achievements towards its purpose

elections for responsible entities

compliance with governing rules related to this concept

(b) take reasonable steps to ensure members have adequate opportunity to raise concerns

could include:

Q & A session at AGM

opportunity for members to propose and vote on resolutions

compliance with governing rules related to this concept

3 Compliance with Australian Lawslxxv All other state, territory & federal laws that also apply to the entity, a breach of which could be dealt with as either:

an indictable offence; or

a civil penalty of 60 penalty units or more



Standard & Requirements Interpretive Note

4 Suitability of Responsible Entitylxxvi

(a) take reasonable steps to ensure each responsible entity is not disqualified within the meaning of the Corporations Act 2001 (see Appendix 6 at page 44)

(b) take reasonable steps to ensure that each responsible entity is not, and has not within the last 12 months, been disqualified by the ACNC

reasonable steps might include:

obtaining declarations on appointment

searching publicly available registers

obtaining declarations that if circumstances change, the entity will be advised

5 Duties of Responsible Entitieslxxvii

Take reasonable steps to ensure that each responsible entity: (a) exercises their powers and

discharges their fiduciary duties with the degree of care and diligence that a reasonable person in the same position would exercise

(b) acts in good faith in the entity’s best interest and to further the entities interests

(c) does not misuse their position as responsible entity

(d) does not misuse information obtained as a result of their responsible entity position

(e) discloses perceived or actual material conflicts of interest

(f) ensures that the entity’s financial affairs are managed responsibly

(g) does not allow the entity to operate whilst insolvent

perceived or actual material conflicts of interest includes a related party transaction

any additional case law (common law and equity) duties also apply

any additional duties imposed by legislation also apply

disclosure of conflicts of interest must be made to – the other directors or members or trustee of the entity or if none, to the ACNC

disclosure can be by way of standing notice

14.10.5 In relation to governance standard 5, there is some statutory protection provided to

responsible entities in certain circumstanceslxxviii.



15 External Conduct Standards 15.1 The external conduct standards will apply to all registered entities which send funds outside

Australia or engage in activities outside Australialxxix. 15.2 Unlike the governance standards, there is no exemption from the external conduct standards

and nor is there provision to vary the way they apply to different categories of charities. 15.3 Similarly to the governance standards (see section 14.3 at page 30), the ACNC Act states that

external conduct standards may be specified by regulationlxxx. 15.4 The external governance standards may require a registered charity tolxxxi:

(a) have governing rules (see 10.3.6 at page 15) for a specified matter;

(b) achieve specified outcomes (but not control how the entity is to achieve them); and

(c) establish and maintain certain processes. 15.5 Again, whilst the ACNC Act does appear to require public consultation in relation to the

external conduct standards, again there is a specific section of the Actlxxxii stating that the requirement to undertake public consultation does not apply in relation to the external conduct standards.

15.6 At the time of writing this paper, the external conduct standards did not exist, although the

federal government had previously announced the intention that they would apply from 1 July 2013. The Governance and Legal Team will continue to monitor this area and provide updates if required.



16 Connection with other regulators and government departments?

16.1 ACNC and the ATO

16.1.1 The Australian Taxation Office (ATO) continues to remain responsible for:

(a) deciding eligibility for tax concessions, exemptions and benefits; and

(b) administering tax law.

16.1.2 Before the establishment of the ACNC, an organisation had to apply to the ATO to be recognised (endorsed) as a charity to access various tax concessions.

16.1.3 Now, charities must apply to the ACNC for ACNC registration. If the ACNC registers

an entity as a charity, it then sends the ACNC application information to the ATO to determine the availability of tax concessions. If the ATO decides that some tax concessions are available, the ATO will endorse the charity for those tax concessions.

16.1.4 If a charity is not registered with the ACNC, it is not eligible for various tax

concessions. 16.2 ACNC and ASIC

16.2.1 An entity may be registered with both the ACNC and the Australian Securities and Investments Commission (ASIC). The ACNC estimates that this is approximately 6,000 entities.

16.2.2 Where this is the case some of the ASIC reporting requirements contained within the

Corporations Act 2001 (Cth) no longer apply. Instead, the information previously required to be sent to ASIC will now need to be sent to the ACNC. The ACNC and ASIC are working through the practicalities of what this means, especially given that the reporting requirements are not identical.

16.2.3 An entity that is registered with both the ACNC and ASIC will no longer need to pay

the ASIC annual review fee. Nor will it receive an annual review statement from ASIC which needs to be checked.

16.2.4 If an entity that is registered with both organisation ceases to be registered with

ACNC, then the full suite of ASIC reporting requirements will again apply. 16.3 ACNC and ORIC

16.3.1 An entity may be registered with both the ACNC as a charity, and the Office of the Registrar of Indigenous Corporations (ORIC). The ACNC estimates that this is approximately 500 entities.

16.3.2 Where this is the case the entity has to report to both:

(a) ORIC under Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth) - the CATSI Act; and

(b) the ACNC.

16.3.3 The ACNC reports that it is working with ORIC to try to reduce the number of times such organisations have to report.



16.4 ACNC and DoHA

16.4.1 An entity registered with the ACNC may have received funding from the Department of Health and Ageing (DoHA).

16.4.2 Where this is the case, a condition of the funding may be the requirement to provide

notifications and reports to DoHA.

16.4.3 ACNC have stated that existing notification and reporting obligations to DoHA may be reduced or replaced by reporting obligations to the ACNC.

16.5 ACNC and DEEWR

16.5.1 An entity registered with the ACNC may have received funding from the Department of Education, Employment and Workplace Relations (DEEWR).

16.5.2 The ACNC states that:

(a) it will accept financial questionnaires provided by non-government schools to DEEWR as meeting the requirement to lodge financial reports (see 12.3 Financial Reporting (Annual Financial Reports) at page 21) under the ACNC law; and

(b) that this will apply for the first 3 reporting periods after the ACNC starts.

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Appendix 2: Not-for-Profit Tax Concessions & Basic Eligibility Criteria

tax concession ACNC registered PBIs

ACNC registered HPCs

ACNC registered charities

income tax exempt funds

other not-for-profits

income tax exemption if ATO endorsed as IT exempt

if ATO endorsed as IT exempt



if self-assessed as meeting extra rules

FBT exempt - $30,000 cap if ATO endorsed as FBT exempt

if ATO endorsed as FBT exempt

x x x

FBT exempt - $17,000 cap x x x x

if public or non-profit hospital

if public ambulance service

x all others

FBT rebate – 48% gross FBT with $30,000 cap

x x if ATO endorsed as FBT rebatable

x if religious institution that not a charity

FBT concessions (i.e. exempt benefits) for benefits provided to:

religious practitioners

domestic employees

x x

if ACNC registered as ‘advancement of religion’ subtype & self-assessed as meeting specific rules

x all others

x x

FBT concessions (i.e. exempt benefits) for benefits provided to:

live-in carers

x x as above x

not-for-profit (NFP) company which meets additional rules & whose activities include caring for elderly or disadvantaged people

Deductible gift recipient (DGR)

if ATO endorsed as DGR


if: a school building

fund overseas aid

fund registered

cultural & environmental orgn

public library, museum and/or art gallery

AND the orgn as a

whole (or a fund, authority or institution it owns or includes) is ATO endorsed as DGR

x all others


if: a school

building fund overseas aid

fund registered

cultural & environmental orgn

public library, museum and/or art gallery

AND the orgn as a

whole (or a fund, authority or institution it owns or includes) is ATO endorsed as DGR

x all others

Goods and Services Tax (GST) concessions

gifts

school tuck shops

GST groups

GST registration threshold

x



tax concession ACNC registered PBIs

ACNC registered HPCs

ACNC registered charities

income tax exempt funds

other not-for-profits

GST concessions

raffles & bingo

fundraising events

non-commercial activities

cash basis accounting

volunteer expenses’ reimbursement

gifts & GST credit adjustments

donated 2nd-hand goods

non-profit sub-entities

GST religious groups

charitable retirement villages

if ATO endorsed for GST concessions



if ATO endorsed as a DGR

x others

if ATO endorsed as a DGR

x others



Appendix 3: ATO’s “What is a charity?” Case Law Summary What is a charity For an organisation to be a charity it must be established and operated for altruistic purposes that the law regards as charitable. The characteristics of a charity are:

it is non-profit

it is an entity which is a trust fund or an institution

it exists for the public benefit or the relief of poverty

its purposes are charitable within the legal sense of that term

its sole purpose is charitable. Charitable purposes are:

the relief of poverty, sickness or the needs of the aged

the advancement of education

the advancement of religion

the provision of child care services on a non-profit basis

other purposes beneficial to the community. Example Charities include most religious institutions, aged persons homes, homeless hostels,

organisations relieving the special needs of people with disabilities and societies that promote the fine arts.

What is not a charity An organisation that is established, controlled and operated by family members and friends will not generally be considered a charity. Most clubs, societies and associations are not charities. Your organisation will not be a charity if:

it is primarily for sporting, recreational or social purposes

it is primarily for political, lobbying or promotional purposes

its purpose is illegal or against public policy

it is primarily for carrying on a commercial enterprise to generate surpluses. Example Organisations that are not charities include social clubs run by religious institutions,

ethnic cultural associations, cinema clubs, friendship clubs, wine societies, fan clubs, rowing clubs, football clubs, dancing clubs, athletic clubs, model train societies, boating and fishing clubs, boxing clubs, golf clubs, car clubs and motor racing clubs.

ACNC Information Paper 1 Qld Synod – 15 April 2013


Appendix 4: Draft “charity” definition A Charity Is A not-for-profit entity:

(a) where all its purposes are:

(i) charitable purposes for the public benefit; and

(ii) not related to:

(A) the engagement in or promotion of activities what are unlawful or contrary to public policy

(B) for promotion of or opposition of a political party or candidate for political office

(b) and which is not:

(i) an individual;

(ii) a political party; or

(iii) a government entity, The Charities Bill then goes into a lot of detail regarding what is public benefit. It also provides guidance regarding what is public policy (as opposed to government policy).

ACNC Information Paper 1 Qld Synod – 15 April 2013


Appendix 5: Draft potential replacement subtypes

entity type

Old Column

1 #

Old Column 2 corresponding subtype purpose

New Column 2 corresponding subtype public purpose

New Column

1 #

Charity

1 relief of poverty, sickness or the needs of the aged

advancing health 1

advancing social or public welfare 3

2 advancement of education

advancing education 2

3 advancement of religion

advancing religion 4

4 beneficial to the community

advancing health 1

advancing social or public welfare 3

advancing culture 5

promoting reconciliation, mutual respect and tolerance between groups of individuals that are in Australia

6

promotion or protecting human rights 7

protecting the safety of the general public 8

preventing or relieving the suffering of animals

9

advancing the natural environment 10

purposes beneficial to the general public & analogous to the other charitable purposes

11

advancing public debate 12

5

promotion of prevention or control of diseases in human beings (HPC)

promotion of prevention or control of diseases in human beings (HPC)

13

6 PBI PBI 14

7 child care services advancing social or public welfare 3



Appendix 6: Australian Accounting Standards Financial Reporting Requirements Summary

Reporting entity indicialxxxiii

many stakeholders

operating Australia wide and/or internationally

whole management team is employed with little volunteer involvement

professional workforce involved in delivery of services or running day-to-day activities

governing board includes ‘outsiders’ with specific skills

significant community impact and/or representing a number of communities or affiliated bodies Non-reporting entity indicia

few stakeholders

operate in a limited geographic area (eg in 1 suburb or a country town)

managed by stakeholders, including volunteers

a small management team is employed and supplemented by volunteers

activities conducted by volunteers

governed by a board of volunteers

impact limited to a specific community & 1 group within that community Australian financial reporting framework summarylxxxiv

General Purpose Financial Reports (GPFRs) Special Purpose

Financial Reports (SPFRs)

Tier 1 (full Australian Accounting

Standards)

Tier 2 (Reduced Disclosure

Requirements)

for-profit private sector

reporting entity that is publicly accountable (e.g. listed entities, disclosing entities, banks, insurance companies and other financial institutions)

other reporting entities that are not publicly accountable – unless the entity elects to apply Tier 1

non-reporting entities currently preparing SPFRs, including wholly-owned subsidiaries and eligible large proprietary companies

not-for-profit private sector

reporting not-for profits currently preparing GPFRs – only if required by a relevant regulator

reporting not-for profits currently preparing GPFRs - choice of applying Tier 1 or Tier 2

non-reporting not-for-profit entities currently preparing SPFRs

public sector Federal, State, Territory and Local Governments

All other entities, unless the relevant regulator requires Tier 1



Appendix 7: Corporations Act 2001 (Cth) Disqualification

206B(1) A person becomes disqualified from managing corporations if the person:

(a) is convicted on indictment of an offence that:

(i) concerns the making, or participation in making, of decisions that affect the whole or a substantial part of the business of the corporation; or

(ii) concerns an act that has the capacity to affect significantly the corporation’s financial standing; or

(b) is convicted of an offence that:

(i) is a contravention of the Corporations Act and is punishable by imprisonment for at least 3 months; or

(ii) is convicted of an offence against the law of a foreign country that is punishable by imprisonment for a period greater than 12 months.

206B(3) A person is disqualified from managing corporations if the person is an undischarged bankrupt under the law of Australia its external territories or another country.

206B(4) A person is disqualified from managing corporations if:

(a) the person has executed a personal insolvency agreement under:

(i) Part X of the Bankruptcy Act 1966; or

(ii) a similar law of an external Territory or a foreign country; and

(b) the terms of the agreement have not been fully complied with

206B(5) A person is disqualified from managing corporations at a particular time if the person is, at that time, disqualified from managing Aboriginal and Torres Strait Islander corporations under Part 6-5 of the Corporations (Aboriginal and Torres Strait Islander) Act 2006.

206B(6) A person is disqualified from managing corporations if the person is disqualified, under an order made by a court of a foreign jurisdiction that is in force, from:

(a) being a director of a foreign company; or

(b) being concerned in the management of a foreign company.

206EB A person is disqualified from managing a corporation if a court order disqualifying the person from managing corporations is in force.

206F A person is disqualified from managing a corporation if ASIC disqualifies a person from managing corporations (and has served a notice on the person advising them of the disqualification, including the period of the disqualification)

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Appendix 9: Key Terms

Term Meaning

AASB Australian Accounting Standards Board

ABN Australian Business Number

ACNC Australian Charities and Not-for-profits Commission

ACNC Act Australian Charities and Not-for profits Commission Act 2012 (Cth)

ACNC Register see 13 ACNC Register at page 28

ACNC Regulation 1 Australian Charities and Not-for-profits Commission Amendment Regulation 2013 (No. 1) – currently draft only

ACNC (C&T) Act Australian Charities and Not-for-profits Commission (Consequential and Transitional) Act 2012 (Cth)

AIS Annual Information Statement

ASIC Australian Securities and Investments Commission

ATO Australian Taxation Office

basic religious charity see 12.3.11 Am I a basic religious charity? at page 23

BRC basic religious charity

CATSI Act Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth)

Charities Bill Charities Bill 2013 – currently in draft form

see 10.4.5 to 10.4.9 at page 16

charity see 10.4 What is a “charity”? at page 16

civil penalty Civil penalty provisions are founded on the notion of preventing or punishing public harm. The contravention itself may be similar to a criminal offence and may involve the same or similar conduct, and the purpose of imposing a penalty may be to punish the offender, but the procedure by which the offender is sanctioned is based on civil court processes. Civil monetary penalties play a key role in regulation as they may be sufficiently serious to act as a deterrent (if imposed at a high enough level) but do not carry the stigma of a criminal conviction. Civil penalties may be more severe than criminal penalties in many cases.lxxxv

CPS 2012/15 ACNC Commissioner’s policy statement: Withholding or Removing Information from the ACNC Register

penalty unit currently equal to $170 per unit

DEEWR Department of Education, Employment and Workplace Relations (Cth)

DGR deductible gift recipient

DoHA Department of Health and Ageing (Cth)

entity see 10.2 What is an “entity”? at page 13

external conduct standards see 15 External Conduct Standards at page 33

FBT fringe benefits tax

financial performance equivalent of the old style profit and loss statement

financial position equivalent of the old style balance sheet



Term Meaning

financial reports suite of documents consisting for the entity’s financial year consisting of:

directors report statement of financial performance statement of financial position statement of cashflows notes to the statements auditor’s report or reviewer’s report or for non-reporting entities

only accountant’s report directors declaration

financial year 1 July to 30 June

note your entity may have a substituted accounting period

FY financial year

general purpose accounts financial reports prepared for reporting entities

general purpose financial report

see 12.3.14.1 at page 25

governance standards see 14 Governance Standards at page 30

governing rules see 10.3.6 Governing Rules/Governing Documents/Constituent Documents at page 15

GPFR general purpose financial report

GST goods and services tax

HPC health promotion charity

indictable offence a crime (a crime is usually punishable by imprisonment and the defendant has the right to a jury although often (unless requested otherwise by the defendant) it may be heard by a judge without a jury, as opposed to a simple offence such as a driving offence)

information statements see 12.2 Information Statements (Annual) at page 20

insolvent unable to pay debts as and when they fall due

large registered entity see 12.3.12 Am I a small, medium or large registered entity? at page 23

medium registered entity see 12.3.12 Am I a small, medium or large registered entity? at page 23

NFP not-for-profit

not-for-profit see 10.3 What is a “not-for-profit”? at page 14

NSCOA National Standard Chart of Accounts

ORIC Office of the Registrar of Indigenous Corporations (Cth)

PBI public benevolent institution

PMSA Presbyterian and Methodist Schools Association

RDR reduced disclosure requirements – i.e. Tier 2 general purpose financial reports

record keeping requirements

see 11 Record Keeping Requirements at page 19

registered entity an entity registered with the ACNC

reporting requirements see 12 Reporting Requirements at page 20

responsible entity see 10.6 What is a “Responsible Entity” and who is a “Responsible Person”? at page 18



Term Meaning

responsible person see 10.6 What is a “Responsible Entity” and who is a “Responsible Person”? at page 18

revenue see 12.3.13 What counts as “Revenue”? at page 24

small registered entity see 12.3.12 Am I a small, medium or large registered entity? at page 23

special purpose financial report

see 12.3.14.1 at page 25

SPFR special purpose financial report

substituted accounting period

a financial year for an entity other than the period 1 July to 30 June which has been approved by the ACNC

subtype/s see 10.5 What is a “type” and “subtype”? at page 16

taxable income the income you pay tax on – i.e. assessable income less allowable deductions

tax concessions see 9 Tax Concessions at page 12

tier 1 either:

the reporting requirements for tier 1 general purpose financial reporting - full Australian Accounting Standards (see 12.3.14.1 at page 25); or

the reporting requirements that apply to a tier 1 category of public company limited by guarantee (see 12.3.15.1 at page 25)

tier 2 either:

the reporting requirements for tier 2 general purpose financial reporting – i.e. the reduced disclosure requirements (RDRs) (see 12.3.14.1 at page 25); or

the reporting requirements that apply to a tier 2 category of public company limited by guarantee (see 12.3.15.1 at page 25)

tier 3 the reporting requirements that apply to a tier 3 category of public company limited by guarantee (see 12.3.15.1 at page 25)

type/s see 10.5 What is a “type” and “subtype”? at page 16

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Appendix 13: Reference Materials Australian Charities and Not-for-Profit Commission Act 2012 (Cth) Australian Charities and Not-for-profits Commission (Consequential and Transitional) Act 2012 (Cth) Australian Charities and Not-for-profits Commission Amendment Regulation 2013 (No. 1) (ACNC Regulation 1) Exposure-Draft - Charities Bill 2013 Exposure-Draft – Charities (Consequential Amendments and Transitional Provisions) Bill 2013 CPS 2012/05 ACNC Commissioner’s Policy Statement: Withholding or Removing Information from the ACNC Register (ACNC) Revised Explanatory Memorandum and Supplementary Memorandum – Australian Charities and Not-for-profits Commission Bill 2012 & Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012 Guide to the Australian Charities and Not-for-profits Commission Act 2012 (Cth) – Version 1.0 – 7 December 3012 (ACNC) 2014 Annual Information Statement (AIS) Public Consultation Paper – 13 March 2013 (ACNC) Not-for-profit Sector Tax Concession Working Group Discussion Paper: Fairer, simpler and more effective tax concessions for the not-for-profit sector – November 2012 (Treasury) Tax basics for non-profit organisations: A guide to tax issues affecting non-profit organisations including charities, clubs, societies and associations - NAT 7966-06.2011 (ATO) Addendum to Tax basics for non-profit organisations - NAT 7966ADD-12.2012 (ATO) Various fact sheets and online information contained on the ACNC’s website ATO website – www.ato.gov.au ACNC website – www.acnc.gov.au



Appendix 14: Endnotes i division 100 ACNC Act

ii para 2.13 – Guide to the Australian Charities and Not-for-profits Commission Act 2012 (Cth) – Version 1.0

iii section 20-5(2) ACNC Act

iv Tax basics for non-profit organisations (NAT 7966-06.2011) as updated by Addendum (NAT 7966ADD-12.2012)

v Not-for Profit Sector Tax Concession Working Group Discussion Paper – November 2012

vi section 25-2(1), (2) & (3) ACNC Act

vii section 205-5 ACNC Act

viii section 205-5(1)(a) ACNC Act

ix section 205-5(1)(b) ACNC Act

x section 205-5(1)(c) ACNC Act

xi section 205-5(1)(d) ACNC Act

xii section 205-5(1)(d) ACNC Act

xiii section 205-5(1)(e) ACNC Act

xiv section 205-5(3) ACNC Act

xv http://www.acnc.gov.au/ACNC/Register_my_charity/Who_can_register/What_is_NFP/ACNC/ Reg/What_is_NFP.aspx

xvi page 3 of NAT 7966-06.2011 Tax basics for non-profit organisations

xvii section 300-5 “governing rules” definition ACNC Act

xviii Exposure-Draft - Charities Bill 2013

xix section 25-5(5) ACNC Act

xx section 25-5(4) ACNC Act

xxi para 3.61 - Revised Explanatory Memorandum for the Australian Charities and Not-for-profits Commission Bill 2012 & Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012

xxii para 3.62 - Revised Explanatory Memorandum for the Australian Charities and Not-for-profits Commission Bill 2012 & Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012

xxiii para 3.59 - Revised Explanatory Memorandum for the Australian Charities and Not-for-profits Commission Bill 2012 & Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012

xxiv para 3.64 - Revised Explanatory Memorandum for the Australian Charities and Not-for-profits Commission Bill 2012 & Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012

xxv Exposure-Draft – Charities (Consequential Amendments and Transitional Provisions) Bill 2013

xxvi by combination of the application of section 205-30, section 300-5 “company”, “director” & “responsible entity” terms and section 205-10 ACNC Act

xxvii http://www.acnc.gov.au/ACNC/Adv/Mailoutinfo.aspx

xxviii section 55-5 & 55-10 ACNC Act

xxix section 55-5 (6) & (7) ACNC Act

xxx section 60-5(1) ACNC Act



xxxi section 60-5(1), (2) & (3) ACNC Act

xxxii sections 190-10(4) & 190-15 ACNC Act

xxxiii paragraphs 4, 13 & 14 of the 2014 Annual Information Statement (AIS) public consultation paper - 13 March 2013 (ACNC)

xxxiv item 8(1) of Part 4 of Schedule 1 of the Australian Charities and Not-for-profits Commission (Consequential and Transitional) Act 2012

xxxv 2014 Annual Information Statement (AIS) Public Consultation Paper – 13 March 2013 (ACNC)

xxxvi https://wiki.qut.edu.au/display/CPNS/Standard+Chart+of+Accounts

xxxvii section 60-85 ACNC Act

xxxviii item 8(2) of Part 4 of Schedule 1 of the Australian Charities and Not-for-profits Commission (Consequential and Transitional) Act 2012

xxxix item 11 of Part 4 of Schedule 1 of the Australian Charities and Not-for-profits Commission (Consequential and Transitional) Act 2012

xl item 9(1) of Part 4 of Schedule 1 of the Australian Charities and Not-for-profits Commission (Consequential and Transitional) Act 2012

xli item 9(2) of Part 4 of Schedule 1 of the Australian Charities and Not-for-profits Commission (Consequential and Transitional) Act 2012

xlii section 60-85 ACNC Act

xliii item 11 of Part 4 of Schedule 1 of the Australian Charities and Not-for-profits Commission (Consequential and Transitional) Act 2012

xliv section 60-60 ACNC Act

xlv section 60-60 ACNC Act

xlvi sections 60-20, 60-10, 60-15, 60-35 & 60-40 ACNC Act

xlvii sections 60-25, 60-10, 60-15, 60-35 & 60-40 ACNC Act

xlviii section 205-35 ACNC Act

xlix section 205-25(1) ACNC Act

l section 205-25(2) ACNC Act

li section 205-25(3) ACNC Act

lii section 205-25(5) ACNC Act

liii section 205-25(4) ACNC Act

liv http://www.acnc.gov.au/ACNC/Pblctns/Factsheets/ACNC/FTS/Fact_CharSize.aspx

lv page 35 of Chapter 5 ‘Enhancing not-for-profit annual and financial reporting’ guide by The Institute of Chartered Accountants in Australia – June 2012

lvi AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards Arising from Reduced disclosure Requirements

lvii section 60-95 ACNC Act

lviii section 60-105 ACNC Act

lix sections 65-5 (1), (2) & (4) ACNC Act

lx section 65-5(1) ACNC Act

lxi section 65-5(5) ACNC Act

lxii sections 65-5(d) & 205-40 ACNC Act

lxiii section 70-5 (1) ACNC Act

lxiv section 70-5(2) ACNC Act



lxv section 40-5 ACNC Act

lxvi section 40-5(3) & (4) ACNC Act

lxvii section 40-10 ACNC Act & paragraph 4 of CPS2012/05

lxviii section 40-10(3) ACNC Act & & paragraph 6 of CPS 2012/05

lxix paragraph 4.47 Revised Explanatory Memorandum for the Australian Charities and Not-for-profits Commission Bill 2012 & Australian Charities and Not-for-profits Commission Consequential and Transitional) Bill 2012 & paragraph 2 of CPS 2012/05

lxx section 45-10 ACNC Act

lxxi sections 45-15(4)

lxxii section 45-10 & 45-10(5) re basic religious charities ACNC Act

lxxiii regulation 45.5 ACNC Regulation 1

lxxiv regulation 45.10 ACNC Regulation 1

lxxv regulation 45.15 ACNC Regulation 1

lxxvi regulation 45.20 ACNC Regulation 1

lxxvii regulation 45.25 ACNC Regulation 1

lxxviii subdivision 45-C ACNC Act

lxxix section 50-5 ACNC Act

lxxx section 50-10 ACNC Act

lxxxi sections 50-10(2) & 50-10(2A) ACNC Act

lxxxii section 50-15(4) ACNC Act

lxxxiii table 5.1 on page 37 of Chapter 5 ‘Enhancing not-for-profit annual and financial reporting’ guide by The Institute of Chartered Accountants in Australia – June 2012

lxxxiv http://www.deloitte.com/view/en_AU/au/services/assurance/accountingtechnical/ accountingalerts/25d6e7dc8ca79210VgnVCM100000ba42f00aRCRD.htm#RDR

lxxxv http://www.alrc.gov.au/publications/71.%20Telecommunications%20Act/criminal-or-civil-penalties