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Charities & Not-For-Profits Law in Australia

Missing charities could lose tax concessions

Posted in Compliance, General, Governance, Tax Exemptions & DGR Status

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The ACNC has recently released a register of charities that have not responded to communication from the regulator (i.e. no known address/contact details or correspondence has been returned to sender). Charities on this database risk losing their entitlements to charity tax concessions and have until 30 June 2014 to update their details and contact the ACNC. If these charities do not contact the ACNC, the ACNC will commence the process of revoking their registration as charities. If a charity’s registration with the ACNC is revoked it will not be entitled to charity tax concessions from the ATO.

We recommend checking this database for any charities you might know and alerting them to the approaching deadline.

Despite the Government’s rhetoric that it will disband the ACNC (see our previous blog), the ACNC is still legally in operation and charities are still required to comply with their obligations under the current legislation.

One such charity obligation includes lodging an Annual Information Statement (AIS). If your charity has not yet submitted the 2013 AIS, and does not report in accordance with the calendar year, then your AIS is already overdue. In order to avoid incurring penalties, it is recommended that the 2013 AIS be submitted as soon as possible. If your charity reports in accordance with the calendar year it must submit its AIS on the charity portal before 30 June 2014. The AIS is rather simple to complete and does not require any financial data to be submitted.

Should you have any questions in relation to missing charities, the ACNC or reporting obligations please do not hesitate to contact Bill d’Apice or Anna Lewis in our office.