Are you ready?
It is essential that all charities prepare for the NFP reforms by
documenting their structure, financial reporting requirements and
on-going entitlement to tax concessions with a compliance matrix or other
suitable records. We estimate that less than 50% of charities understand
how the reforms will affect their tax concessions and financial
reporting obligations; fewer still have adequately documented their
Saward Dawson can assist your charity to understand the reforms,
document your compliance with current and imminent tax concession
conditions and your financial reporting obligations.
Australian Charities and Not-for-profits Commission (ACNC) - Latest
Earlier this month, the Senate deferred consideration of the ACNC bill
until 2013. However the Government has ordered that it be considered
sooner and recently announced that it believes it has secured support
for the ACNC legislation to pass the Senate. The Government expects that
the bill will be debated "in the next few weeks" with the aim of having
the ACNC up and running by early December.
We can report that debate on the bill has re-commenced. The ACNC may be as
little as five weeks away. All charities should be preparing for
this important reform by reviewing their financial reporting
obligations. We will keep you up to date with all further developments.
Mid-year budget update - Changes to taxation of
in-house fringe benefits
This week, the Government announced changes to the fringe benefits tax (FBT)
treatment of in-house fringe benefits as part of its mid-year Economic
and Fiscal Outlook. These changes will affect salary packaging
arrangements already implemented by many employers, particularly not-for-profit organisations.
Victorian incorporated associations reform
Earlier this year, the Victorian Government passed changes to the
incorporated association legislation but deferred the commencement until
a future time (to be announced).
The Government recently announced that
the changes would apply from 26 November 2012. New financial reporting
and audit requirements will be introduced with similar thresholds to the ACNC's reporting regime but with some differences to reporting
exemptions and concessions. Other major amendments under the reform
include changes to trading restrictions, new mandatory clauses in
governing rules and other changes to officeholder and committee
Some incorporated associations may be required to make
changes to their governing rules to include new mandatory clauses. All
incorporated associations should be preparing for the commencement of
this reform and reviewing how the new financial reporting changes apply
to them. Saward Dawson is able to help you transition to these changes.
Business Name Law Reforms - Traps for NFPs
The new ASIC Business Names Register commenced in May. This
national register has taken over from a series of business name registers previously
held by each state. The new system changes the way that
business names are protected. This has implications for some NFPs
operating under an unregistered name. It may mean that they might lose
the right to use that name.