- The Australian Government is reviewing charities and not-for-profits legislation
- The regulatory, reporting and assurance frameworks need to be right for the future
- CAs are being asked for their views by answering five key questions
The Government is planning to revise the legislative framework surrounding charities and the not-for-profit sector by undertaking a review of the Australian Charities and Not-for-profits Commission (ACNC) legislation.
The terms of this review were announced in late 2017, and the focus will be on four key issues:
- The objectives of the ACNC legislation and whether those continue to be relevant
- The effectiveness of the regulatory framework
- The functions and powers of the Commissioner and whether they are sufficient and
- Whether any amendments to the legislation are required.
This is a complex area, with a range of issues to consider from the cost of compliance right through to the usefulness of financial reporting information to those members of the public who support charities.
However, it is important for CAs – especially those working in the NFP sector, or with experience of NFPs to share their views with CA ANZ in order to lobby on your behalf.
We believe the chief areas for comment can be condensed down to five key issues:
- Should the ACNC regulate not-for-profit entities other than charities?
- Does information reported by charities through their Annual Information Statements and financial reports meet the needs of stakeholders?
- Do you think that the financial reporting framework for charities needs to change? How?
- What other opportunities are there to reduce the regulatory burden for charities and not-for-profit entities?
- Do you think the regulatory approach taken by the ACNC to date has found the right balance between supporting charities to meet their obligations and the need to deter, and appropriately address, misconduct by charities?
Help shape the future of the NFP sector in Australia. Because of the great work that charities do, and the nature of the organisations themselves, it’s vital that NFP entities are regulated in a way that supports them to deliver their services without an overload of red tape. Bear in mind too, while the review is purely focused on the NFP sector, the process may also lead to similar reviews in the for-profit and public sectors.
Please give us your thoughts on the five questions above. In order to meet the Review Panel’s public submission deadline of 28 February 2018, please send us your responses in this form by Friday 16 February.
The Australian charities and not-for-complex mission
"... it is important for CAs – especially those working in the NFP sector, or with experience of NFPs to share their views,” Ceri-Ann Ross FCA, Reporting Leader, CA ANZ"Read article