In our third issue of “Legal Questions for Every Charity and Not-For-Profit Organisation” we deal with the topic of Privacy. The update forms part of our series of short summaries of legal issues that we have noticed during the course of advising our clients are common and important to charities and not-for-profit (NFP) organisations.
ABR and ACNC enter into a data sharing agreement
In a further step to provide a user-friendly and reliable source of data for the community, last week the Australian Business Register (ABR) and Australian Charities and Not for Profits Commission (ACNC) entered into a Memorandum of Understanding (MOU) to facilitate data sharing between the two agencies.
Occasionally, there are data discrepancies between the two
Charity Sector Update
Future of the ACNC slowly becomes more certain
Earlier this month, the (then) Minister for Social Services Scott Morrison stated that “there is very strong support for the Australian Charities and Not-for-profits Commission (ACNC) and I don’t believe there would be any support in the Senate for there to be any change.” Many in the
Template Governing Document Released by the ACNC
Last week the ACNC released a one page document to be used as a template governing document for registered charities who otherwise don’t have a constitution which satisfies the requirements of the ACNC.
This template governing document is for charities which are created by an Act of Parliament or are governed by Canon Law and
Tax deductibility for school donations
Federal Parliament has recently passed legislation that allows tax deductibility for donations to a new education charity called Australian Schools Plus.
For the first time, this will allow donors to receive a DGR receipt for donations for general educational purposes to particular schools.
What are the Opportunities for Deductible Gift Donations for Schooling?
Up until
ATO releases Draft Special Conditions TR2014/D5
The ATO has released the Draft Special Conditions Ruling TR 2014/D5 – Income Tax: special conditions for various entities whose ordinary and statutory income is exempt
- An entity must comply with all the substantive requirements in its governing rules (Governing Rules Condition); and
- An entity must apply its income and assets solely for the purpose for which the entity is established (Income and Assets Condition).
What organisations or entities does the ruling apply to?
The ruling applies to a number of income tax exempt entities (but not all) which are listed at Section 50 of the Income Tax Assessment Act 1997 (ITAA).Continue Reading ATO releases Draft Special Conditions TR2014/D5
The Future of the ACNC Remains Uncertain
The Future of the ACNC Remains Uncertain
On 16 June 2014 the Senate Committee delivered a divided report on the Australian Charities and Not-for-profit Commission (Repeal) (No 1) Bill 2014 (No 1 Bill).
No 1 Bill
Unsurprisingly, the Liberal Senators supported the abolition of the ACNC, however, the Labor and Greens Senators offered dissenting reports appealing for the ACNC to continue. The dissenting reports noted that the ACNC is preferable to returning to the previous regime of regulation by the ATO and ASIC.
The No 1 Bill was introduced into the House of Representatives on 19 March and now will return to the House of Representatives where it is likely to be passed by the lower house. Part 1 of the Bill contains the necessary provisions to repeal the ACNC and Part 2 provides for transitional arrangements, importantly, allowing for the Minister to specify a successor agency.
If passed, the Bill won’t come into operation until the Australian Charities and Not-for-Profits Commission (Repeal) Bill (No 2) (which has not yet been introduced) is successfully passed.Continue Reading The Future of the ACNC Remains Uncertain
Missing charities could lose tax concessions
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.Continue Reading Missing charities could lose tax concessions
Full Federal Court unanimously confirms that Hunger Project Australia is a Public Benevolent Institution
Earlier today the Full Federal Court handed down its judgment regarding the Hunger Project Australia case and rejected the Commissioner of Taxation’s appeal (Commissioner of Taxation v Hunger Project Australia [2014] FCAFC 69). The court has unanimously held that Hunger Project Australia (HPA) does not need to directly give aid
The Unrelated Business Income Tax is (finally!) dead
Just weeks before the intended commencement of the “Better Targeting of NFP Tax Concessions” measure, the Acting Assistant Treasurer has issued a press release stating “the Government has considered alternatives to the previous government’s better targeting of not-for-profit tax concessions measure. We have concluded that they are not required at this time”. This news will be welcomed by many charities and not for profit organisations.
The Better Targeting of NFP Tax Concessions, commonly known as the unrelated business income tax (or UBIT), was introduced as part of the 2011-2012 budget and had been delayed for a number of years.Continue Reading The Unrelated Business Income Tax is (finally!) dead