Not-for-profit e-bulletin

 

Not-for-profit Reform - Are you ready?

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Issued: 30 October 2012


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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 compliance.

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 developments

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. Read more...

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 obligations.

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.  Read more...

 

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Disclaimer: This publication has been prepared on the basis of information available at the date of preparation. The information is general in nature and is not to be taken as substitute for specific professional advice. We recommend that our advice be sought on specific issues prior to acting on transactions affected.