Charity Lawyers
  • Home
  • About Us
    • Who we are
    • Our team
  • Expertise
    • At a glance
    • In depth
      • Tax & duties
      • Governance
      • Charitable Trusts
      • Structures: establishment & restructuring
      • Mergers, collaborations & strategic alliances
      • Gifts, charitable fundraising & promotions
      • Disputes & regulatory reviews
      • Workplace & People issues
      • Brand, information & reputation protection
      • Property
  • Insights
    • At a glance
    • View articles
      • Breaking: Charities to lose charitable status if they fail to join the National Redress Scheme
      • New Bill – Requiring DGRs to Register as Charities
      • Federal Budget 2020-21
      • NZ High Court finds Greenpeace NZ should be registered as a charity
      • A member of a charity has a fiduciary duty to act in the best interest of the charity?
      • Key Changes- incorporated associations in Queensland
      • COVID-19 Work practice changes to keep our commitments to our clients and team
      • Bill for new DGR category for Community Sheds now law
      • UPDATE 2 June 2020: SME Commercial Leasing Principles During COVID-19 - what does it mean for charities and not-for-profits?
      • UPDATE 19 May 2020: COVID-19 – Information for Charities and Not-for-Profits
      • UPDATE 6 May 2020: COVID-19 - Ancillary Funds, Disaster Relief Funds and AGM for companies
      • Draft bill for new DGR Category: Men’s and Women’s Sheds
      • An Update: COVID-19 Australian government’s economic response – What’s for charities and not-for-profits?
      • COVID-19 Australian government’s economic response – What’s for charities and not-for-profits?
      • ACNC to review registered charities beginning with Public Benevolent Institutions in July 2020
      • Government response to the recommendations of the ACNC Legislation Review
      • Fundraising– considerations for charities, fundraisers and donors
      • Minute-taking post Banking Royal Commission
      • Taxation Ruling: 'in Australia' conditions
      • Key changes to the Victorian Fundraising Act
      • Religious Discrimination Bill- Update
      • New protections for whistleblowers – what does it mean for charities and not-for-profits? UPDATE
      • Significant Changes in Payment and Record Keeping Requirements for Clerical and Administrative Staff
      • New Tax Office Ruling - Fringe Benefits Provided to Religious Practitioners
      • ACNC External Conduct Standards - Update
      • Fair Work Australia decision will introduce changes in entitlements and record keeping requirements of clerical and administrative employees
      • Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability
      • National Redress Scheme Update
      • DGR reform proposals
      • Release of the ACNC Review Report
      • Not So Casual
      • ACNC External Conduct Standards - Public Consultation
      • Law on Advocacy by Charities
      • New ATO Draft Ruling on the fringe benefits tax: benefits provided to religious practitioners
      • Employment update - New numbers for key employment issues for a new tax year
      • Electoral disclosure & funding reform: why charities and NFPs should be concerned
      • Review of ACNC Framework
      • Reforming Administration of Tax Deductible Gift Recipients - a victory for common sense?
      • Righting Wrongs: Victoria takes lead on organisational child abuse legislation
      • Tax Deductible Gift Recipient Reform Opportunities
      • When may a charity board member be paid for their services?
      • #fixfundraising
      • Privacy Law Update: Mandatory Data Breach Notifications to come into force by the end of 2017
      • Good Things Come To Those Who Wait? ACNC releases Commissioner’s Interpretation Statement on Public Benevolent Institutions
      • Privacy Obligations - Lessons and reminders from the Red Cross Data Breach
      • Charities and the Australian Consumer Law - reducing duplication and confusion
  • Careers
  • Contact

Get In Touch


Sydney

Level 4, 107 Mount Street
North Sydney NSW 2060
Australia

   +61 2 9466 5222

  info@prolegis.com.au

Melbourne

Suite 350, Level 3
1 Queens Road
Melbourne VIC 3004
Australia

   +61 3 8672 2920

  info@prolegis.com.au

Insights

Breaking: Charities to lose charitable status if they fail to join the National Redress Scheme

   November 2020   |  News   |  Sam Burnett and Jon Cheung

Today the Commonwealth Government has announced that it will pass new laws to empower the Australian Charities and Not-for-profits Commission (ACNC) to deregister a charity that has not taken steps to participate in the National Redress Scheme for Institutional Child Sexual Abuse (National Redress Scheme) in circumstances where it has been named, or is likely to be named, in an application to the National Redress Scheme.

New Governance Standard

The Government will conduct consultation from 7 December 2020 to 9 January 2021 in relation to including a new Governance Standard to be introduced at Division 45 of the Australian Charities and Not-for-profits Regulations 2013 (Cth).

The proposed Governance Standard will require that the registered charity take all reasonable steps to join the National Redress Scheme where the charity has been named, or is likely to be named, in an application to the National Redress Scheme.

In the event a charity fails to meet the proposed Governance Standard, the ACNC will be able to exercise its regulatory powers which include:

  • directions to the charity to take certain steps;
  • enforceable undertakings;
  • suspension, removal or appointment of responsible persons; and
  • revocation of registration of the charity (with the result that the charity will not be able to access the relevant tax concessions provided by the Australian Taxation Office).

Basic Religious Charities

The Governance Standards do not apply to Basic Religious Charities, so the Government is also proposing amendments to the definition of Basic Religious Charities at section 205-35 of the Australian Charities and Not-for-Profits Commission Act 2012 (Cth) (ACNC Act). The Government proposes to introduce the amendment via the Treasury Laws Amendment (2020 Measures No. 6) Bill 2020 (Cth) before the end of the year.

The effect of the proposed amendments will be to remove Basic Religious Charity status from any entity who would be a Basic Religious Charity but for the fact of them being named in an application to the National Redress Scheme and failing to join the National Redress Scheme. Consequently, they would be subject to the Governance Standards and subject to the regulatory powers set out above.

Our preliminary view is that the mechanism to deregister a registered charity for failure to join the National Redress Scheme may more appropriately be addressed by including it as a requirement of registration at section 25-5 of the ACNC Act.

The reasons why a new Governance Standard may not be the most suitable mechanism to require charities to participate in the National Redress Scheme include that:

  • the Governance Standards are designed to apply to all registered charities (that are not Basic Religious Charities);
  • the ACNC is already able to revoke the registration of Basic Religious Charities under the ACNC Act including with reference to section 25-5 of the ACNC Act; and
  • the proposed new Governance Standard would only be applicable to those institutions that have provided services to children prior to 1 July 2018.

Although there may be circumstances where a charity may reasonably determine not to join the National Redress Scheme, large numbers of charities have joined out of recognition of the importance of access to the scheme for those that have experienced abuse. This includes charities that do not anticipate being named in an application, but have nonetheless joined out of recognition of the civic importance of the scheme.

If you would like to discuss joining the National Redress Scheme or making a submission to the consultation in relation to the proposed Governance Standard please do not hesitate to contact Jon Cheung or Sam Burnett.

Prolegis Lawyers have:

  • assisted a participating group of around 100 charities join the National Redress Scheme;
  • assisted individual charities join the National Redress Scheme; and
  • provided advice to charities in relation to particular applications made under the National Redress Scheme.

Please see the media release from Senator the Hon Anne Rushton, Minister for the Department of Social Services, and Senator the Hon Zed Seselja, Assistant Minister for Finance, Charities and Electoral Matters.





Quick Links

⇢    Our Team
⇢    About Us
⇢    Expertise
⇢    Insights
⇢    ACNC

Latest News

  • November 2020
    Breaking: Charities to lose charitable status if they fail to join the National Redress Scheme
  • October 2020
    New Bill – Requiring DGRs to Register as Charities
  • October 2020
    Federal Budget 2020-21
  • September 2020
    Bill for new DGR category for Community Sheds now law
  • August 2020
    NZ High Court finds Greenpeace NZ should be registered as a charity

Latest News & Insights

  • Breaking: Charities to lose charitable status if they fail to join the National Redress Scheme November 2020
  • New Bill – Requiring DGRs to Register as Charities October 2020
  • Federal Budget 2020-21 October 2020

Useful Links

  • Our Team
  • About Us
  • Expertise
  • Insights
  • ACNC

Sydney Office

Level 4, 107 Mount Street
North Sydney  NSW   2060
Australia

+61 2 9466 5222

info@prolegis.com.au

Melbourne Office

Suite 350, Level 3

1 Queens Road
Melbourne  VIC  3004
Australia

+61 3 8672 2920

info@prolegis.com.au

Copyright © Prolegis Lawyers. All Rights Reserved.

  • Privacy Policy