LEGAL ISSUES FACING THE AUSTRALIAN CHURCH IN

Transcription

1 LEGAL ISSUES FACING THE AUSTRALIAN CHURCH IN 2013

2 NEW REGIME AND A NEW REGULATOR BACKGROUND -THE SITUATION BEFORE Incorporated Association Unincorporated Association not incorporated

3 BACKGROUND -THE SITUATION BEFORE Regulators: Incorporated Association State/Territory Offices of Fair Trading Unincorporated Association largely unregulated

4 BACKGROUND -THE SITUATION BEFORE TAXATION TREATMENT (regardless of structure chosen) Income tax exempt (no tax return to submit) Stamp duty exemptions Fringe Benefits Tax relief/exemption

5 NEW REGIME AND A NEW REGULATOR TAXATION TREATMENT (regardless of structure chosen) Largely similar to that enjoyed by tax exempt charities (with some exceptions)

6 NEW REGIME AND A NEW REGULATOR REFORM CURRENT POSITION 2 June 2013 Last Dateto OPT OUT for charities registered with ATO as at 3 December 2012 (i.e. Currently on ACNC Register) 1 July 2013 All registered charities MUST adopt ACNC GOVERNANCEand EXTERNAL REPORTING Standards 2 December 2013 Last Date for non-registered religious organisations to OPT IN to ACNC Register 31 December 2013 Annual Report for 30 June 2013 year to be lodged with ACNC(Initially non-financial)

7 NEW REGIME AND A NEW REGULATOR REFORM CURRENT POSITION Religious organisations NOTregistered (i.e. Not on ACNC Register)NO TAX CONCESSIONS/EXEMPTION(i.e. No more self assessing) and this is effective from 3 December 2012

8 NEW REGIME CURRENT POSITION SIGNIFICANT REQUIREMENTS OF REGISTERED CHARITIES? Maintain entitlement status MUST be not-for-profit, have charitable purpose and be for public benefit MUSTcomply with GOVERNANCEand EXTERNAL REPORTING Standards that may apply to it Must have an ABN Not involved in criminal or terrorist activity Continue to be entitled to be registered for the charity subtype. N.B. If not ACNC may cancel its registration

9 NEW REGIME CURRENT POSITION SIGNIFICANT REQUIREMENTS OF REGISTERED CHARITIES? provide annual financial reports to ACNC provide annual information to ACNC promptly notify changes to ACNC

10 NEW REGIME CURRENT POSITION REPORTING REQUIREMENTS OF REGISTERED CHARITIES? All Charities must provide Annual Information Statement (AIS) for 2013 year (i.e. year ended 30 June 2013) non-financial in 2013 Medium & Large Charities must provide financial information in 2014, small Charities may provide financial information voluntarily AIS and Financial Reports for a Charity will be available for search on the ACNC Website

11 NEW REGIME CURRENT POSITION REPORTING REQUIREMENTS OF REGISTERED CHARITIES? Incorporated Associations -still need to file accounts (where required) with Office of Fair Trading and submit an annual return and pay a fee. Must also hold AGM within 6 months after Y/E. If you raise money from the public (seek donations) must be registered as a Charity under the Collections Act in Qld (similar Acts in other states). Registration as a Charity with ACNC does not qualify for this The above is NOTan exclusive list but indicative of some dual requirements

12 GOVERNANCE STANDARDS How the governance standards apply (new Division 45A of the ACNC Act) Community expectations in relation to governance may include expectations about how a registered entity goes about managing its affairs, the use of public monies, volunteer time and donations providedtoit, howtheentitymanagestherisksthatitfaces,howthe entity promotes the effective and responsible use of its resources and how the entity goes about demonstrating that it is operating transparently and for a proper purpose.

13 GOVERNANCE STANDARDS The governance standards also act as a mechanism which may enliven theenforcement powersin Part 4-2 of the Act to help protect and sustain the not-for-profit sector and maintain and enhance public trust and confidence.

14 GOVERNANCE STANDARDS

15 GOVERNANCE STANDARDS

16 GOVERNANCE STANDARDS

17 GOVERNANCE STANDARDS

18 GOVERNANCE STANDARDS

19 GOVERNANCE STANDARDS

20 GOVERNANCE STANDARDS

21 GOVERNANCE STANDARDS Noted in brackets are the sections of the Corporations Act 2001 (Cwlth) with similar duties of officers of corporations (i.e. Companies limited by guarantee)

22 STATUTORY DEFINITION OF A CHARITY

23 STATUTORY DEFINITION OF A CHARITY

24 OVERVIEW AND CONCLUSION

25 OVERVIEW AND CONCLUSION (Continued)

26 THANK YOU FOR YOUR ATTENTION