On Mon 10.9.2012, in the House of Reps, the report was tabled of the Parliamentary Joint Committee on Corporations and Financial Services inquiry into the Australian Charities and Not-for-profits Commission Bill 2012, Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012 and the Tax Laws Amendment (Special Conditions for Not-for-profit Concessions) Bill 2012.
The report is on the Committee’s website.
The report recommended the Bills be passed without amendment or delay. It did however make several recommendations, including that:
- the definition of a “basic religious charity” in the Australian Charities and Not-for-profits Commission Bill be modified to enable an entity to retain its current status as a basic religious charity in cases where it operates a school building fund with deductible gift recipient status within the entity;
- as part of the 5-year review of the operation of the ACNC, the annual reporting requirement thresholds are reviewed;
- upon the establishment of the ACNC on 1 October 2012, the Commissioner promptly engages stakeholders to devise a set of governance standards and reporting requirements for the sector;
- the ATO circulate guidance material relating to the “in Australia” test in Sch 1, Item 38 of the Taxation Laws Amendment (Special Conditions for Not-for-Profit Concessions) Bill 2012;
- Treasury issue guidance material in relation to the definition of “not-for-profit entity” in proposed s 995-1(1)(a) of the ITAA 1997.
The Coalition members of the Committee issued a dissenting report stating they did not support passage of any of the 3 Bills.
The Senate Community Affairs Legislation Committee is also examining the Bills and is due to report this Wednesday, 12 September 2012.
[LTN 175, 10/9]