Regulatory Compliance

Regulatory Compliance

The objects of the Australian Charities and Not for profits Commission Act 2012 (the Act) are:

  • "to maintain, protect and enhance public trust and confidence in the Australian not‑for‑profit sector; and
  • to support and sustain a robust, vibrant, independent and innovative Australian not‑for‑profit sector; and
  • to promote the reduction of unnecessary regulatory obligations on the Australian not‑for‑profit sector. “

The Act seeks to achieve those objects by:

  • establishing a commission that will be responsible for registering entities as not‑for‑profit entities
  • administering a national regulatory framework; and
  • by providing such entities with guidance and education.

The Act mandates:

  • registration
  • governance standards
  • external conduct standards; and
  • record keeping and reporting.

Penalties apply for non-compliance as well as subjecting non-registered entities to a taxation regime.

Accordingly, registration under the Act and compliance with the Act is a central pillar of good governance.

The Liberal/National Party at the 2013 Federal Election stated it was the Government’s intention if elected to repeal the Act. 

The Australian Charities and Not-for-profits Commission Repeal (No.1) Bill 2014 was introduced and read a first time in Parliament on 19 March 2014.  The explanatory memorandum to the Bill discloses that the repeal of the Act will not take effect until a “successor agency” is established by further legislation which legislation will also contain replacement arrangements for the sector.  Such arrangements are likely to include a new National Centre of Excellence to provide broad support for the sector.