Presentation on theme: "The Australian Charities and Not-for- profits Commission (ACNC) Volunteering Victoria AGM Susan Pascoe AM, Commissioner Designate Melbourne Bowls Club,"— Presentation transcript:
The Australian Charities and Not-for- profits Commission (ACNC) Volunteering Victoria AGM Susan Pascoe AM, Commissioner Designate Melbourne Bowls Club, Flagstaff Gardens 25 October 2012
News Flash 23 August 2012: Three Bills introduced into HoR: –Australian Charities and Not-for-profits Commission Bill 2012; –Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012; and –Tax Laws Amendment (Special Conditions for Not-for- profit Concessions) Bill 2012. 17-18 Sept: HoR debate on and pass ACNC 2012 Bills Week of 29 October, ACNC Bills expected to be debated in Senate
News Flash cont.. 23 August: ACNC Bills referred to two Parliamentary Committees: –Senate Community Affairs Committee (SCAC) - Report on 10 September 2012 –HoR Joint Committee on Corporations and Financial Services - Report on 12 September 2012 ACNC scheduled to open for service in December 2012
Proposed Passage of ACNC Legislation The Hon David Bradbury, Assistant Treasurer (17 May 2012): I am announcing today that charities that come under the initial phase of ACNC regulation will not be required to comply with the governance standards and financial reporting framework until 1 July 2013 with the first financial reports now beginning to fall due after 1 July 2014. The Government will proceed with establishing the ACNC by 1 October 2012 as previously announced as we are determined to deliver these reforms and we want to maintain the momentum that has been built around our reform agenda.
Proposed Passage of ACNC Legislation Hon. David Bradbury, Assistant Treasurer (17 May 2012): As part of this staged approach, I am proposing to implement the governance standards and the financial reporting framework through statutory instruments, after close consultation with the Government’s NFP Sector Reform Council and additional public consultation to enable all sector participants to provide their input and views. Exposure Draft (3) of ACNC Bill referred to HoR Economics Committee on 5 July 2012 for inquiry over Winter Recess. Report tabled in HoR on 14 August 2012 with 11 recommendations - all accepted by the Government and reflected in V4 of ACNC Bill 2012
Early decisions re ACNC Independent statutory office report to Parliament (through Minister) own appropriation Back office services from ATO including IT support, accommodation, and payroll MOUs to be developed with Taxation Commissioner to ensure budgetary and staffing independence Headquarters in Melbourne & presence in Canberra Budget of $53.6m over four years 2011 – 14 (including IT build)
Source: Department of Prime Minister and Cabinet
Policy Drivers Response to sector advocacy and formal inquiries over two decades re complexity, duplication and inconsistency in interjurisdictional reporting Broad reform agenda including regulatory, taxation and funding reforms Accountability and transparency pressures Vs red tape reduction/privacy drivers Support for sustainability, independence and innovative capacity of NFP sector
Role of the Regulator Register charities from the commencement of the ACNC (ATO continue to apply tax concessions) Establish and maintain an up-to-date, publicly searchable register of charities from 1 July 2013 Establish a one-stop-shop for charities: –apply for charity registration –apply for ABN –access Commonwealth tax concessions, and –potentially access other services including state and territory tax concessions
Role of the Regulator (cont.) Provide a report once, use often service for charities to assist in reduction of regulatory impost with co- operation of States/Territories – work underway across Commonwealth, and discussion within COAG NFP WP of SCFFR. Provide timely information, education, guidance and advice services for the sector and the public Monitor compliance, investigate regulatory breaches
ACNC Bill, 2012 The objects of this Act are: to maintain, protect and enhance public trust and confidence in the Australian not-for-profit sector; and to support and sustain a robust, vibrant, independent and innovative Australian not-for-profit sector; and to promote the reduction of unnecessary regulatory obligations on the Australian not-for-profit sector.
One Stop Shop For the public to search information on charities and to learn about the charitable sector For funders and donors to do a financial and governance health check on individual charities For charities to: –access guidance and general advice –apply for charity registration –apply for ABN –access Commonwealth tax concessions, and –potentially access other services including state and territory tax concession –post additional material on their purpose and activities
Report once, use often Registration data will be used for multiple purposes eg publicly searchable register and Charity Passport Charity Passport for ACNC to provide commonly required data across government. This data will come from registration and AIS Annual Information Statement will keep Register up to date and provide ACNC with data on charitable activity, finances and governance Financial Reports for medium and large charities will differ from charity type to charity type – subject of major project between ACNC & Tsy
Education, Guidance and Compliance Provide timely information, guidance and advice services for the sector and the public online, by phone and email Provide searchable register of data on charities Assist charities meet obligations, and also monitor compliance and investigate regulatory breaches Maintain, protect and enhance public trust & confidence in the Australian NFP sector
Regulatory Approach Light-touch, risk-based, evidence-based approach Timely accessible information, guidance and education Informed by ongoing engagement with the Sector Assumption of honesty, use of graduated powers, and opportunities for self-correction Regulatory Principles: relevance, proportionality, consistency, transparency, timeliness. Consultation on regulatory approach post passage of legislation