Community & Associations Newsletter – November/December 2020
Published on December 16, 2020 by Grace Brophy, Josephine Heesh, Patricia Monemvasitis and Stephanie McLuckie
In this edition, the following matters have attracted our recent attention:
- New legislation requiring institutions to join the National Redress Scheme if they wish to retain registered charity status;
- The impact of COVID-19 on ACNC Governance and External Conduct Compliance;
- The ACNC deferring submission dates of Annual Information Statements;
- Easing of legal requirements for the signing of documents through electronic signing;
- Extension of the JobKeeper Payment for Charities registered with the ACNC and other not-for-profit entities;
- The revision of Ancillary Fund Guidelines; and
- Good News: Charity Sheds are now eligible for tax-deductible donations.
We wish you a happy Christmas.
Community & Associations’ Team
Redress Scheme: Charity Deregistration for not Joining
The Commonwealth of Australia is aiming to incentivise charities to participate in the Redress Scheme. Minister for Families and Social Services, Anne Ruston, in public statements assumes that by not joining, a relevant charitable or religious institution is “refusing to accept their moral obligation and responsibility to acknowledge the wrongs committed”.
The Minister has also expressly indicated that the addition of a governance standard under the new legislation to require registered charities to take all reasonable steps to become a participating non-government institution if a claim is made or is likely to be made against them, will ultimately result in deregistration with the ACNC if that governance standard is not met.
A new exposure draft is presently circulating: submissions are open until 8 January 2021.
Compliance Updates during Covid
Earlier this year the ACNC Commissioner recognised that charities faced unique challenges during the COVID-19 pandemic. As a result, the ACNC declared it would not investigate or take action in regards to certain breaches of their governance and external conduct standards.
Stephanie McLuckie, Lawyer
Josephine Heesh, Partner
Annual Information Statements
The ACNC Commissioner is now authorised to defer submission dates for Annual Information Statements for charities that can demonstrate a genuine need for an extension.
Stephanie McLuckie, Lawyer
Josephine Heesh, Partner
Electronic Signing of Documents
Throughout the COVID-19 pandemic, there has been an easing of legal requirements for the signing of document and the effecting of exchange.
Extension of the JobKeeper Payment
As a result of the ongoing effects of COVID-19, the JobKeeper payment has been extended until 28 March 2021.
Grace Brophy, Lawyer
Josephine Heesh, Partner
Other Coronavirus Responses for Ancillary Funds
The ancillary fund guidelines have been revised to enable deductible gift recipients to receive increased distributions to assist them navigate the challenging effects of COVID-19.
Good News
With the introduction of the Federal budget which was delivered on 1 October 2020 the Treasurer announced a new specifically listed category under item 1.1.9 of the Income Tax Assessment Act 1997 identifying Community Sheds as eligible recipients of tax-deductible donations.
