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Related party transactions

What is a Related Party Transaction?
A related party transaction is a transfer of resources, services or obligations between a charity and a related party. Examples of such transfers include:
• Sales or purchases of goods, other property or services
• Leases
• Loans.
The transfer does not have to involve a financial payment.

2022 Budget: Good news for charities

The 2022 Budget provides some good news for the charities and not-for-profits sector

Update on recent changes to the Corporations Act affecting members’ rights to elect to receive company documents

Updated transparency requirements under the Commonwealth Electoral Act

With a federal election looming, the ACNC has recently confirmed that a charity may advocate on political matters consistent with its charitable purpose, provided it does not advocate for a particular party of candidate. In short, issue-based advocacy is fine, but partisan advocacy is not.

Pastoral care services DGR category

Resignation of director notification

Permanent changes to the Corporations Act regarding meetings and documents to come into force

Prolegis Lawyers ranked Band 1 by Chambers

In the 2022 awards for Australian law firms in the practice area of Charities, Prolegis Lawyers was again ranked by Chambers in the highest Band, Band 1 in the Australian Charities section alongside three much larger full-service firms..

Recent changes to the Corporations Act for electronic meetings, notices, minute books and e-signing due to the Covid-19 pandemic

The Commonwealth Parliament has introduced new temporary changes to the Corporations Act 2001 (Cth) that will assist companies during the Covid-19 pandemic to conduct meetings of directors and members electronically and execute documents electronically.

Recent decisions in Australian charity law – update

The Administrative Appeals Tribunal and Federal Court of Australia have recently handed down a set of decisions that have major implications for the Australian charity law sector and for charities and not-for-profit organisations across Australia.

New requirements for DGRs to be registered as charities with the ACNC

Entities endorsed as Deductible Gift Recipients (DGRs) that are not currently registered as charities with the Australian Charities and Not-for-profits Commission (ACNC) will soon be required to be registered as charities with the ACNC.

High Court rules on who is a Casual employee

On 4 August 2021 the High Court of Australia issued a decision in Workpac P/L v Rossato (2021) HCA 23 (Decision) on casual employment.

Changes to Charities’ Financial Reporting Obligations

On 30 June 2021, the Federal Government announced changes to financial reporting obligations in the next financial year: https://ministers.treasury.gov.au/ministers/michael-sukkar-2019/media-releases/cutting-red-tape-charities

Changes to Casual Employment

The Fair Work Act 2009 (Cth) (FWA) was recently changed by the Commonwealth Parliament and those changes will impact on casual employment.

Final Report of the 2020 Review of Disability Standards for Education 2005

In 2020, the Commonwealth Department of Education, Skills and Employment (the Department) conducted a review of the Disability Standards for Education 2005 (Cth) (the Standards) made pursuant to the Disability Discrimination Act 1992 (Cth) (the DDA).

UPDATE 25 February 2021: Introducing ACNC Governance Standard 6 and changes to Basic Religious Charity eligibility

Today, the Australian Charities and Not-for-profits Commission (ACNC) announced the introduction of a new governance standard: Governance Standard 6 – Maintaining and enhancing public trust and confidence in the Australian not-for-profit sector (Governance Standard 6).
 

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

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.

Federal Budget 2020-21

We have listed the measures in the Federal Budget 2020-21 delivered by the Treasurer on 6 October 2020 that are relevant to charities, not-for-profits and philanthropic organisations.

NZ High Court finds Greenpeace NZ should be registered as a charity

Charity laws in Australia and New Zealand have lots of similarities and also some key differences. The long-running saga of the application by Greenpeace of New Zealand Inc (Greenpeace NZ) for charitable status in New Zealand is a good illustration of this.

Bill for new DGR category for Community Sheds now law

A Bill to implement a new Deductible Gift Recipient (DGR) category for Community Sheds has recently been introduced by the Australian Government. This new category implements the Australian Government’s announcement in its 2019-20 Budget that a new DGR general category would be created to enable Men’s Sheds and Women’s Sheds to access the DGR endorsement.

UPDATE 2 June 2020: SME Commercial Leasing Principles During COVID-19 - what does it mean for charities and not-for-profits?

In response to the COVID-19 crisis, the Federal Government has announced measures relating to rental arrangements between landlords and tenants (residential, retail and commercial tenancies).

Draft bill for new DGR Category: Men’s and Women’s Sheds

UPDATE: The government has recently announced that due to the COVID-19 pandemic, introduction of legislation to enact this proposed DGR category will be deferred indefinitely. Please contact Jae Yang (Partner) if you have any questions.

In its 2019-20 Budget, the Federal Government announced it will establish a DGR general category to enable Men’s Sheds and Women’s Sheds (Sheds) to access DGR status from 1 July 2020.

Fundraising– considerations for charities, fundraisers and donors

The extensive devastation of the bushfires has compelled many people to make donations and fundraise to assist affected communities, support fire services, and care for injured wildlife, etc.

Key changes to the Victorian Fundraising Act

The Victorian Parliament has passed the Consumer Legislation Amendment Act 2019 (Vic) which will significantly amend the Fundraising Act 1998 (Vic). The amendments will come into force on 31 August 2020 or an earlier date by proclamation.

New protections for whistleblowers – what does it mean for charities and not-for-profits? UPDATE

A new whistleblower protection regime, which will apply to all companies from 1 July 2019, received royal assent on 12 March 2019. An immediate focus for many charities and not-for-profits will be the new requirement that any structured as public companies (including companies limited by guarantee) and large proprietary companies must have a whistleblower policy from 1 January 2020.

New Tax Office Ruling - Fringe Benefits Provided to Religious Practitioners

On 19 June 2019, the Australian Taxation Office released its Ruling TR 2019/3 which sets out the Commissioner’s position on when a benefit provided by registered religious institutions to religious practitioners will be exempt from fringe benefits tax (FBT). TR 2019/3 finalises the Commissioner’s view expressed in draft Taxation Ruling TR 2018/D2 and replaces the now withdrawn Taxation Ruling TR 92/17W.

Fair Work Australia decision will introduce changes in entitlements and record keeping requirements of clerical and administrative employees

On 27 February 2019 the Fair Work Commission (FWC) decided to significantly change the annualised salary provisions for employees covered by the Clerks Private Sector Award. The exact date that the changes will take effect are not yet known, but is expected to be announced in the next few months.

National Redress Scheme Update

The National Redress Scheme provides an opportunity for eligible survivors of institutional child sexual abuse to apply for redress where the responsible institution has joined the Scheme. The Scheme was introduced in response to the Royal Commission into Institutional Responses to Child Sexual Abuse.

Release of the ACNC Review Report

The much anticipated report of the ACNC Review Panel, entitled “Strengthening for Purpose – Australian Charities and Not-for-profits Commission Legislation Review 2018”, was tabled in Parliament and published on 22 August 2018. This article highlights the key conclusions and reform proposal included in the Review Panel's report.

ACNC External Conduct Standards - Public Consultation

On Monday 13 August 2018, the Treasury released for consultation the proposed external conduct standards which will be implemented through new regulations under the Australian Charities and Not-for-profits Commission Act 2012. The standards will apply to any charity registered with the Australian Charities and Not-for-profits Commission (ACNC) which operates outside Australia or works with third parties who operate outside Australia.

New ATO Draft Ruling on the fringe benefits tax: benefits provided to religious practitioners

A new Draft Ruling from the Australian Taxation Office sets out the Commissioner’s position on when a benefit provided by registered religious institutions to religious practitioners will be exempt from fringe benefits tax (FBT).

Employment update - New numbers for key employment issues for a new tax year

The start of the new financial year saw the commencement of a new set of important employment related threshold numbers that all employers should be aware of.

Review of ACNC Framework

The Federal Government is required by statute to undertake a review of the ACNC Acts (the Australian Charities and Not-for-profits Commission Act 2012 and the Australian Charities and Not-for-profits Commission (Consequential and Transitional) Act 2012) after their first five years of operation. Accordingly, on 20 December 2017 the Assistant Minister to the Treasurer Michael Sukkar MP announced the terms of reference for a review of the ACNC legislative and regulatory framework. This review provides an opportunity for all parties involved and/or interested in the sector to contribute to its the quality, effectiveness and efficiency of its oversight going forward.

Tax Deductible Gift Recipient Reform Opportunities

The Commonwealth Treasury recently released a Discussion Paper titled 'Tax Deductible Gift Recipient (DGR) Reform Opportunities' and invited submissions in relation to the proposals that were set out in the paper. In this note we have summarised the Treasury proposals, and set out additional Prolegis recommendations that we believe are both necessary and desirable to simplify the DGR registration and governance framework, and to remove administrative burden, cost and complexity in this area.

#fixfundraising

Last week, we saw charities and sector leaders and advisors write an open letter to our Prime Minister, Premiers and Chief Ministers imploring them to #fixfundraising. Their letter calls for creation of one uniform fundraising regulatory regime as part of the Australian Consumer Law (ACL). Prolegis fully supports this proposed reform, whilst also identifying a number of practical and policy issues that will require attention so that no unintended consequences arise for the charity and not for profit sector.

Good Things Come To Those Who Wait? ACNC releases Commissioner’s Interpretation Statement on Public Benevolent Institutions

The ACNC released a statement just before Christmas 2016 which clarifies how it will assess whether or not the activities of certain charities enable them to achieve or retain Public Benevolent Institution (PBI) status.

Charities and the Australian Consumer Law - reducing duplication and confusion

A review of the Australian Consumer Law provides hope that unwanted red-tape and confusion can be reduced for Charities involved in fundraising activities