Key Insights from the Not-for-profit Sector Development Blueprint

Productivity Commission – Future foundations for giving – Draft report

On 30 November 2023, the Productivity Commission released its draft report into Future foundations for giving (Draft Report).
The purpose of the Draft Report is to establish foundations for the future of philanthropy in Australia.

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.

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.

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

Global Alliance of Impact Lawyers Launch Week

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.

Streamlining of regulation of charities undertaking fundraising in NSW

Charities that undertake charitable fundraising in NSW will welcome the regulatory reforms, effective from 1 July 2021, that have introduced a streamlined application process to apply for, and renew, an authority to fundraise in NSW.  Simplified reporting requirements for ACNC-registered charities have also been introduced as part of the reform package that will benefit charities undertaking fundraising in NSW.

Women’s Life Centre – A recent decision of the Administrative Appeals Tribunal regarding Public Benevolent Institutions (PBIs)

The Administrative Appeals Tribunal (AAT) issued its decision in Women’s Life Centre Inc v Commissioner of the Australian Charities and Not-for-profits Commission [2021] AATA 500 on 12 March 2021.

Private Ancillary Form

Royal Commission into Aged Care Quality and Safety - final report released

The Royal Commission into Aged Care Quality and Safety released its Final Report on 1 March 2021. The Final Report was released following an extensive public hearing schedule and research programme.

Treasury Consultation: Proposed changes to ACNC Governance Standard 3

Treasury is seeking submissions regarding a proposal to broaden ACNC Governance Standard 3.

New Bill – Requiring DGRs to Register as Charities

Treasury has recently published an Exposure Draft of its proposals to reform the Income Tax Assessment Act 1997 (Cth) to require non-Government Item 1 Deductible Gift Recipients (DGR) to register as charities. These reforms are part of the Commonwealth Government’s recent initiatives to reform and simplify DGRs, as proposed in its 2017-2018 Mid-Year Economic and Fiscal Outlook.

A member of a charity has a fiduciary duty to act in the best interest of the charity?

On 29 July 2020, the Supreme Court of the United Kingdom handed down its judgment in Lehtimäki and others v Cooper [2020] UKSC 33, which confirmed that members of charitable companies in the United Kingdom are fiduciaries and must therefore make decisions and act in the companies’ best interests (that is, to serve the purposes of the charities) to the exclusion of their own or any other party’s interests.

Key Changes- incorporated associations in Queensland

On 22 June 2020, the Associations Incorporation and Other Legislation Amendment Act 2020 (Queensland) (Amendment Act) was assented to.

ACNC to review registered charities beginning with Public Benevolent Institutions in July 2020

The Australian Charities and Not for Profits Commission (ACNC) will review 500 Public Benevolent Institutions (PBIs) over the year from July 2020 as a start to its review of a selection of registered charities which are deductible gift recipients (DGRs). Such charities should prepare for the review.

Government response to the recommendations of the ACNC Legislation Review

The Federal Government today released its response to the recommendations of the ACNC Legislation Review (Government Response to the Australian Charities and Not-For-Profits Commission Legislation Review 2018, 6 March 2020).  The report of the review panel had been tabled in Parliament in August 2018.

Minute-taking post Banking Royal Commission

The Financial Services (Banking) Royal Commission, among many other aspects of good corporate governance, put the practice of minute-taking under a spotlight and, in particular, how detailed should board minutes be.

Taxation Ruling: 'in Australia' conditions

On 18 December 2019, the Australian Taxation Office has released its Ruling TR 2019/6, which sets out the Commissioner’s position on the ‘in Australia’ conditions for certain deductible gift recipients and income tax exempt entities. TR 2019/6 finalises the Commissioner’s view expressed in draft Taxation Ruling TR 2018/D1.

Significant Changes in Payment and Record Keeping Requirements for Clerical and Administrative Staff

On 4 July 2019 a Full Bench of the Fair Work Commission (FWC) finalised arrangements related to their earlier decision that flagged significant changes to the annualised salary provisions for employees who are covered by the Clerks Private Sector Award (and some other awards). These changes, which will take effect from 1 March 2020, are described below.

ACNC External Conduct Standards - Update

In November 2018, Regulations under the Australian Charities and Not-for-profits Commission Act 2012 (Cth) were tabled in Parliament to introduce new ‘external conduct’ standards for registered charities operating directly or indirectly overseas.

This article examines when the new standards will most likely take effect, in the context of the Federal election that has been called this week.

Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability

In recent days, the Australian Parliament has agreed to establish a Royal Commission into the abuse of persons with disabilities.

DGR reform proposals

The Commonwealth Treasury has outlined details of proposed changes to the rules for Deductible Gift Recipients (DGRs) in a Consultation Paper released on 22 August 2018. If enacted in law, DGRs which are not already registered as charities will need to take action, and those with multiple public funds may be able to streamline their arrangements.

The future of these reforms is uncertain following the changes to the federal government’s ministry last week. Kelly O’Dwyer, the former Minister for Revenue and Financial Services was sponsoring the changes. At the time of writing it is not yet clear which Minister will now have responsibility for these reforms.

Submissions regarding the proposed changes can be made to Treasury, by the closing date of 17 September 2018.

Not So Casual

Last week a Full Court of the Federal Court of Australia held that a truck driver employed by a labour hire company to work at a Queensland coal mine was entitled to paid annual leave despite the fact he had an employment letter stating he was engaged as a casual employee. This article looks to put this ruling in broader perspective and highlights matters that any organisation which employs casuals should consider as a consequence of last week's Federal court ruling.