Tax Exemptions & DGR Status

Subscribe to Tax Exemptions & DGR Status via RSS

https://www.charitiesnfplaw.com.au/files/2014/06/Detective-with-magnifying-glass.jpg

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

The Hunger ProjectEarlier 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…

Starting a Not-For-Profit or Charitable Organisation

Are you thinking about starting an organisation, charity, club, association, social enterprise, co-operative or some other kind of not-for-profit group? If so, this information may be helpful.

What’s the Difference between a Charity and a Not-For-Profit?Continue Reading Starting a Charity or Not-for-Profit

Government Introduces Legislation to Repeal the ACNC

This morning the Coalition Government introduced a suite of legislation to repeal thousands of Acts, Bills and Regulations in an effort to “cut red tape”.

In line with the Government’s pre-election promise, the planned abolition of the ACNC has been tabled as part of the Australian Charities and Not-for-profits Commission (Repeal) (No. 1) Bill 2014 (the Bill). The Explanatory memorandum to the Bill states “the abolition of the ACNC is part of the broader Government red tape reduction and deregulation agendas.”

The proposed abolition of the ACNC is intended to occur through a two stage process; the initial Bill to repeal the ACNC has been introduced to Parliament but (if it is passed) will not take effect until a subsequent Bill regarding replacement arrangements is introduced in the winter sitting period.Continue Reading Government to Repeal the ACNC

ACNCACNC Deadline Approaching

Have you submitted your 2013 Annual Information Statement?

Regardless of size or purpose all charities registered with the ACNC must submit an Annual Information Statement to the Commissioner each year. The first AIS will need to be completed for the 2012-2013 financial year. If your charity has a financial year calendar (ending 30 June), its first Annual Information Statement (AIS) is due on 31 March 2014.


Continue Reading ACNC Annual Information Statement Deadline Approaching

Parliament HouseOn Thursday last week (the last sitting day before the Christmas break), the Senate adjourned debate on the Social Services and Other Legislation Amendment Bill 2013 (which included the amendment to delay the Charities Act) and ran out of time to return to the debate before rising for the holidays.

This means that the Charities Act which includes a definition of charity will commence on 1 January 2014 as planned. This is in contrast to last week when we expected that the commencement of the Charities Act was likely to be delayed. Usefully, David Locke, Assistant Commissioner at Australian Charities and Not-for-profits Commission (ACNC), has stated that the ACNC intends to put out guidance for the sector regarding the new definition.

Importantly, charities that are already recognised as having a charitable purpose prior to the commencement of the Act will continue to be recognised as charities in accordance with section 12(k) of the Charities Act.Continue Reading Charities Act to Commence on 1 January 2014

ACNCEarlier this week, the Minister for Social Services, Kevin Andrews reconfirmed his plans to abolish the Australian Charities and Not-for-profits Commission (ACNC). At the Disability Services CEO conference Minister Andrews stated “to benefit civil society as a whole, the Government has committed to abolishing the Australian Charities and Not-for-profits Commission, with repeal legislation to be introduced into Parliament next year”.

This statement is unsurprising as it reinforces the Coalition Government’s stance to abolish the ACNC.

On Wednesday 4 December, Minister Andrews introduced a late amendment to the Social Services and Other Legislation Amendment Bill 2013 to delay the commencement of the Charities Act 2013 until 1 September 2014. The Charities Act is currently due to commence on 1 January 2014. The Act provides a statutory definition of charity and was passed on the penultimate sitting day before Parliament rose before the election. For more information on the Charities Act please see our previous blog.Continue Reading Charities Act Delayed and ACNC to be Abolished

ACNCSome Good News From the ACNC!

The Australian Charities and Not-for-Profits Commission (ACNC) has just announced that the reporting deadline for the Annual Information Statement (AIS) due on 31 December 2013 for many charities has been extended to 31 March 2014.

Regardless of size or purpose all charities registered with the ACNC must submit an AIS to the Commissioner each year. The first AIS will need to be completed for the 2012-2013 financial year. However, in some circumstances, charities may not report in accordance with the financial year. If this is the case, the charity will need to apply to the ACNC for a ‘substituted accounting period’ by submitting Form 4A.Continue Reading ACNC Annual Information Statement – 2013 Deadline Extended

GavelOn 3 July 2013 the Administrative Appeals Tribunal upheld the decision of the Commissioner of Taxation to refuse endorsement of Home Health Pty Ltd as a public benevolent institution or a charitable institution.

Home Health Pty Ltd (Home Health), a mental health services provider is a proprietary company incorporated on 9 June 1997. The Tribunal refused endorsement on the basis that Home Health is not an ‘institution’.

The Tribunal considered the elements of recognising a ‘public benevolent institution’ as set out in Perpetual Trustee Co Ltd v Federal Commissioner of Taxation [1931] HCA 20. Perhaps self-explanatory, but significant nonetheless, a public benevolent institution must be: (i) public, (ii) benevolent and (iii) an institution.

Home Health satisfied the “public” requirement as the relief provided by the organisation was directed to a sufficiently large sector of the community.Continue Reading Home Health Pty Ltd – What is an “Institution”?