ABN and ACNC Registration Policy and Procedures for Congregations, Presbyteries and Synod Boards

Transcription

1 ABN and ACNC Registration Policy and Procedures for Congregations, Presbyteries and Synod Boards Title ABN and ACNC Registration Policy and Procedures for Congregations, Presbyteries and Synod Boards Creation Date Version Last Revised Reformatted 31 March 2014 Approved by Approval date

2 Table of Contents 1. Application What is an Australian Business Number ( ABN )? Who is entitled to an ABN? How will an ABN help Congregations, Presbyteries and Synod Boards? Entitlement of Congregations to hold an ABN Entitlement of Linked Congregations to hold an ABN Entitlement of Faith Communities to hold an ABN Entitlement of Presbyteries and Synods to hold an ABN Additional ABN Registrations and/or DGR Endorsements Uniting Church in Australia GST Religious Group ABN and ACNC Registration Policy ABN and ACNC Registration Process ABN Queries Annexures...7 Copyright 2014 Uniting Church Last updated: 31/03/2014 Page 2 of 7

3 1. Application The following policy and procedures applies to all Congregations, Presbyteries and Synod Boards within the bounds of the Synod of NSW and the ACT ( the Synod ). Separate policies apply to all Parish Missions within the Synod and UnitingCare NSW.ACT. 2. What is an Australian Business Number ( ABN )? An ABN is a unique eleven digit identifier for use in dealings with the Australian Taxation Office ( ATO ) and other government agencies, including the Australian Charities and Not for Profits Commission ( ACNC ). An ABN indicates the organisation is registered with the Australian Federal Government as operating an enterprise in Australia. It also enables organisations to be registered with the ATO for: goods and services tax (GST); Pay as You Go (PAYG) Withholding arrangements for employee wages; and fuel tax credits (if applicable). If an ABN is not quoted by an organisation on any invoice it supplies to a third party, it may result in amounts being withheld from payments to the organisation under the PAYG withholding tax rules. 3. Who is entitled to an ABN? Not everyone is entitled to an ABN. To be entitled to an ABN an organisation must be operating an enterprise. An entity for ABN purposes means an individual, a body corporate, a corporation sole, a body politic, a partnership, an unincorporated association or body of persons, a trust or a superannuation fund. For the purposes of determining if an enterprise exists, the ABN law states that when an activity or series of activities are undertaken by: a charitable institution or trustee of a charitable fund in Australia; or a deductible gift recipient in Australia; or a religious institution in Australia an enterprise is in existence, and these entities can apply for an ABN. 4. How will an ABN help Congregations, Presbyteries and Synod Boards? Congregations, Presbyteries and Synod Boards can use their ABN to: register for goods and services tax (GST) and claim GST credits; register for pay as you go (PAYG) withholding; apply to the ACNC for registration as a basic religious charity; apply to the ACNC for endorsement of relevant tax concessions or exemptions as may apply to the ACNC registered charity; interact with other government departments, agencies and authorities; interact with the ATO on other taxes, such as fringe benefits tax (FBT); and Copyright 2014 Uniting Church Last updated: 31/03/2014 Page 3 of 7

4 access membership and associated benefits of the Uniting Church in Australia GST Religious Group. 5. Entitlement of Congregations to hold an ABN The majority of Uniting Church organisations that fall within the bounds of the Synod are unincorporated associations that are not legal entities in their own right. The Constitution and Regulations of the Uniting Church in Australia deal with the establishment of Congregations and therefore also provide for their respective powers. Regulation 3 deals with Government and Administration and installs a Church Council with the responsibility to manage the affairs of a Congregation. The Church Council is given the ability to establish committees, but not the authority to create new entities whether incorporated or unincorporated. Congregations only have the necessary legal substance to be able to apply for and hold one ABN registration in the name of the Congregation with Charity tax concession status as a Charitable Institution and ACNC registration as a Basic Religious Charity ( BRC ) - See Annexure 1 ABN and ACNC registrations cannot include endorsement of the Congregation as a Deductible Gift Recipient ( DGR ) because such endorsement could preclude the Congregation from being registered with the ACNC as a BRC. Any Congregation that is not registered as a BRC with the ACNC will be required to comply with the ACNC s financial reporting and governance regime. If a Congregation fails to meet their ACNC obligations it could result in their charitable status and taxation endorsements being revoked - See Annexure 2 6. Entitlement of Linked Congregations to hold an ABN Where congregations are linked to form part of a Multi or Linked Centre, there are further ACNC legislative requirements that need to be taken into consideration when making an application for ABN and ACNC registration. 6.1 MULTI CENTRES Multi Centres are a group of linked congregations that operate under one church council only. In this situation, the Multi Centre applies for and holds one ABN registration in the name of the Multi Centre with Charity tax concession status as a Charitable Institution and ACNC registration as a BRC. The Multi Centre is recognised by the ACNC as a reporting group and a BRC, so individual congregations within a Multi Centre cannot continue to or hold individual ABN and ACNC registrations as they will not be recognised by the ACNC as a BRC in their own right. The Multi Centre ABN will therefore trade as the individual congregations and lodge one combined BAS with the ATO for all linked congregations. 6.2 LINKED CENTRES Linked Centres are a group of linked congregations that operate with a church council for each linked congregation. In this situation, each congregation applies for and holds an ABN registration in the name of the Congregation with Charity tax concession status as a Charitable Institution and ACNC registration as a BRC. The Linked Centre is not recognised by the ACNC as a reporting group so each individual congregation must lodge their own BAS with the ATO. Copyright 2014 Uniting Church Last updated: 31/03/2014 Page 4 of 7

5 7. Entitlement of Faith Communities to hold an ABN The Constitution and Regulations of the Uniting Church in Australia deal with the establishment of Faith Communities and therefore also provides for their respective powers. Regulation defines Faith Communities, but does not provide Faith Communities with the necessary legal substance to be able to apply for and hold ABN and ACNC registration in their own right. Faith Communities will therefore operate as established committees of a Congregation or Presbytery and under the ABN and ACNC registration of the Congregation or Presbytery. 8. Entitlement of Presbyteries and Synod Boards to hold an ABN Presbyteries and Synod Boards only have the necessary legal substance to be able to apply for and hold one ABN registration in the name of the Presbytery or Synod Board. Such registration will include Charity tax concession status as a Charitable Institution and ACNC registration as a BRC. ABN and ACNC registrations cannot include endorsement of the Presbytery or a Synod Board as a Deductible Gift Recipient ( DGR ) because such endorsement could preclude the Presbytery or the Synod Board from being registered with the ACNC as a BRC. Any Presbytery or Synod Board that is not registered as a BRC with the ACNC will be required to comply with the ACNC s financial reporting and governance regime. If a Presbytery or a Synod Board fails to meet their ACNC obligations it could result in their charitable status and taxation endorsements being revoked. The Constitution and Regulations of the Uniting Church allow Presbyteries and Synod Boards, in certain circumstances, to create new entities which may have the necessary legal substance to be able to apply for ABN and ACNC registration in their own right. Where a Presbytery or a Synod Board creates a new entity that is not a Congregation or a Faith Community, the entity will be required to have a separate constitution that is formally recognised by the Synod Constitutions Committee and endorsed by the Synod Standing Committee, before any application for the entity to hold ABN and ACNC registration is lodged. 9. Additional ABN Registrations and/or DGR Endorsement Where a Congregation, Presbytery or Synod Board believes they need to hold additional ABN registrations or seek DGR endorsement they should obtain immediate guidance from the Risk and Compliance Division of Uniting Resources. 10. Uniting Church in Australia GST Religious Group Religious charities endorsed by the ATO to access GST tax concessions and which belong to the same religious organisation are eligible to join a GST religious group provided they meet certain requirements. In accordance with the New Tax System (Goods and Services Tax) Act 1999 the Uniting Church in Australia has established a national GST Religious Group. The Uniting Church in Australia Assembly has been appointed as the head member of the Uniting Church in Australia GST Religious Group and is tasked with maintaining the membership and relevant correspondence with the ATO. To be eligible to join and remain a member of the GST Religious Group, Congregations, Presbyteries and Synod Boards must be GST registered, endorsed to receive GST concessions and maintain endorsement from the ATO as an income tax exempt charitable institution. Copyright 2014 Uniting Church Last updated: 31/03/2014 Page 5 of 7

6 Congregations, Presbyteries and Synod Boards can only be a member of one GST Religious Group (for example by being a member of the Uniting Church in Australia GST Religious Group, organisations are not entitled to join the Anglican Church (or any other religious denomination s) GST Religious Group). The benefit of being a member of the GST Religious Group is that there are NO GST consequences for any transaction between group members. This means that for any transaction between congregations and presbyteries (for example) there is no need to have GST included in the transaction value. This also means there is no GST to claim on those expenses. This is a significant benefit to the Uniting Church in Australia. 11. ABN and ACNC Registration Policy Without exception, all applications from Uniting Church organisations for ABN and ACNC registration are to contain the following standard information and must be endorsed by the Risk and Compliance Division of Uniting Resources prior to any application being submitted to the ATO and/or ACNC as applicable. If you believe your circumstances require different information to be included, you will need to contact Uniting Resources and discuss these differences ENTITY NAME Your entity name must be prefixed with UCA -, for example: UCA Uniting Resources UCA Paddington Mission UCA Lifeline Northern Rivers UCA Pymble Ladies College 11.2 ENTITY TYPE Your entity type must be Other Unincorporated Entity 11.3 GOODS AND SERVICES TAX (GST) To ensure that each Uniting Church organisation has the potential to receive the benefits arising from the GST Religious Group exemption, they must be registered for GST regardless of the estimated or actual level of GST turnover TRADING NAMES If your organisation is trading under a name that is different to your entity name or your Congregation is a linked congregation to a Multi Centre, all trading names must be included in the organisation s ACNC registration CHARITY TAX CONCESSION STATUS Your charity tax concession status must be endorsed as a Charitable Institution and have access to the following tax concessions, including the GST Religious Group exemption as an absolute minimum: GST Concession; and FBT rebate; and Income Tax Exemption status. All Congregations, Presbyteries and Synod Boards must also be endorsed by the ACNC as a BRC. Copyright 2014 Uniting Church Last updated: 31/03/2014 Page 6 of 7

7 12. ABN and ACNC Registration Process Without exception, Uniting Church organisations seeking ABN and ACNC registration must follow the processes below: Step Action Complete Annexure 3 titled ABN and ACNC Application Information Form for Congregations, Presbyteries and Synod Boards and Annexure 4 Application to join GST Religious Group. These documents have been prepared by Uniting Resources as a common base from which applications are to be made. Submit completed forms with accompanying documentation to Uniting Resources for endorsement. Completed forms can be posted to: ABN Registration Endorsement Uniting Resources PO Box A2178 Sydney South NSW 1235 Uniting Resources will acknowledge receipt of applications within 7 working days and once applications are endorsed, Uniting Resources will facilitate lodgment of all applications to the ATO and ACNC. Any subsequent changes to ABN registration details are to be advised to Uniting Resources and endorsed by them, prior to the contact person for the organisation lodging changes with the ATO and/or ACNC. 13. ABN Queries Queries relating to a new application for ABN and ACNC registration or a change in ABN and ACNC Registration status should be referred to: Risk and Compliance Division Uniting Resources ABN general queries should be referred to: Finance Division Uniting Resources 14. Annexures Annexure 1 Annexure 2 Annexure 3 Annexure 4 Annexure 5 Is your organisation a Basic Religious Charity? ACNC obligations ACNC and ABN Application Information Form for Congregations, Presbyteries and Synod Boards Application to Join GST Religious Group Application to Join GST Religious Group Checklist Copyright 2014 Uniting Church Last updated: 31/03/2014 Page 7 of 7