Source: https://aec.gov.au/Parties_and_Representatives/financial_disclosure/guides/associated-entities/information.htm
Timestamp: 2018-04-22 08:41:49
Document Index: 410899335

Matched Legal Cases: ['art 1', 'art 2', 'art 2', 'art 2', 'art 2', 'art 2', 'art 3', 'art 3', 'art 3', 'art 3', 'art 2', 'art 4', 'art 4', 'art 5', 'art 5', 'art 6', 'art 3', 'art 6', 'art 7']

Information to be disclosed in the associated entity disclosure return
An associated entity should list any other names under which it conducts business.
Part 1c: Are you a union?
Where an associated entity is a union, the associated entity should list the name and address of any subsidiaries or branches on behalf of whom the return is being lodged.
Part 2a: Total receipts for financial year 1 July 2015 to 30 June 2016
Section 314AEA(1)(a) of the Act requires that the total amount received by, or on behalf of, the associated entity during the financial year must be disclosed.
To complete this part of the return, the associated entity must disclose all transactions that result in amounts, both above and below the disclosure threshold, being received from external parties.
Amounts received include, but are not limited to the following:
gifts-in-kind of services or goods
loan monies received
When determining what transactions need to be included in Part 2a of the return the following principles should be observed:
All transactions of the associated entity must be disclosed, including those that are not to the benefit of a registered political party.
Inter-entity transactions, such as transfers between the associated entity and a political party must be included.
Transactions by related body corporates of the associated entity (as determined under the Corporations Act 2001) must be included.
In general, related body corporates are entities at least 50% owned or controlled by another entity, or entities over which that other entity is able to exert control.
When an associated entity is a trust, trustees have the reporting obligation.
Where funds or assets are received from a trustee, it should be disclosed as 'ABC as trustee for XYZ Trust', not just one or the other.
Trustees should not list transactions involving their own trusts.
If an investigation of a trust is undertaken, a copy of the trust deed will be requested as a matter of course in order to allow the AEC to readily determine the relevant features of the trust.
Where the associated entity is lodging on behalf of related entities, transactions of related entities should be consolidated before determining whether the disclosure threshold has been reached, and one return lodged on behalf of all entities.
Examples of receipts that are required to be included in the calculation of 'total receipts' at Part 2a of the return:
A gift of $15 000 cash.
A donation of printing of stationery that if purchased commercially would have been priced at $350.
Interest on term deposit of $2 755.
Loan of $7 000 cash received from a financial institution.
Three separate gifts of $8 000 each are received from a person on different days.
Rent received of $15 000 relating to commercial premises owned by the associated entity.
A cheque for $400 relating to the sale of office furniture from the office of the associated entity.
Two separate donations are received from the same person on different days. One amount is $9 500 and the other is $35 000.
Both the $9 500 and $35 000 amounts are included.
A capital contribution of $10 000.
Disclose gross figures, not net figures
Section 314AEA of the Act requires the disclosure of amounts received, not of income or profit. The return, therefore, must be completed on a gross basis inclusive of GST and merchant fees. Transactions are to be reported separately, not netted off against each other.
a fundraiser taking $14 000 with costs of $12 750 and a net profit of $1 250 is disclosed as:
a receipt of $14 000; and
a payment of $12 750.
a transaction through American Express for $17 600 of which $16 864 was deposited in the bank account following the merchant deducting their fee should be disclosed as the full sum of $17 600.
a receipt of $20 000 subsequently refunded must be disclosed as
a receipt of $20 000 and
a payment of $20 000.
Which transactions are not to be reported in the return?
Transactions that are not to be reported in the return include:
commercial discounts received in the normal course of business,
volunteer labour, such as professional services provided by an individual who is a member of the political party with which the entity is associated.
Material presented on an 'advertorial' basis (that is, a combination of paid advertising and interviews) should be disclosed consistent with the promotional intention of the activity.
Part 2b: Amount calculated to be the value of gifts-in-kind
This is the amount calculated to be the value of gifts-in-kind which would have been included in the 'total receipts' amount disclosed at Part 2a.
Gifts-in-kind may be goods or services received for which no payment (in cash or in kind) or inadequate consideration is made. Inadequate consideration is where the benefits obtained are clearly of a lesser value than the payment made. Inadequate consideration includes discounts provided that are over and above those that would be offered under normal commercial arrangements.
These gifts are to be disclosed for an amount that reflects the fair value. That is, the normal commercial or sale value of the item or service as evidenced by arms-length transaction or comparative quotations or expert assessment.
Examples of gifts-in-kind include but are not limited to:
free/discounted services such as legal advice, accounting services or web and IT services,
excessive payments received for goods, services or other benefits provided (including excessive membership fees),
wages or salaries (including on-costs) incurred by an employer whose employee works for the associated entity during normal working hours while continuing to receive salary or wages from the employer unless the employee takes paid leave to work for the associated entity,
free/discounted use of premises or equipment and facilities,
free use of a motor vehicle, or free fuel or servicing of a motor vehicle,
free/discounted time or production services by a broadcaster,
free/discounted advertising by a publisher or advertising production service,
free air travel or the free use of a private aircraft,
loans provided interest free, or at rates that are less than those available in the commercial loan market,
free/discounted printing, typesetting or associated services,
free/discounted goods or services (for example, travel, artwork, sports memorabilia or electrical goods) for use in raffles or other fundraising activities,
where a person pays a bill/account owed by the party.
Part 3: Amounts of more than $13 000 received in financial year 1 July 2015 to 30 June 2016
Section 314AEA(5) and Section 314AC(1) of the Act requires that if the sum of all amounts received by, or on behalf of, the associated entity from a person or organisation during a financial year is more than the disclosure threshold details of that sum must be disclosed.
Section 314AEA(5) and Section 314AC(2) of the Act provides that when calculating the sum, individual amounts received from the same source, that are less than the disclosure threshold, need not be counted.
As a matter of best practice the AEC recommends that multiple receipts of less than the disclosure threshold received on the same day from the same source should be considered to be a single receipt. Where the sum of those multiple receipts is more than the disclosure threshold, details of the sum should be disclosed.
The details to be disclosed are:
Full name and address details of the person or organisation from whom the money or gift-in-kind was received.
The sum of amounts received from that person or organisation.
Whether the receipt is a 'gift/donation' or 'other receipt'.
The following requirements must be observed when disclosing the details of sums received:
In the case of an amount received from an unincorporated association (other than a registered industrial organisation), the name of the association along with the name and address of each member of the executive committee of the association must be disclosed.
In the case of an amount received from a trust or foundation, the name and description of the trust or foundation, along with the names and addresses of the trustees must be disclosed.
Section 314AC(3)(ba) of the Act requires that where the sum received was the result of a loan the following disclosure must be made:
For loans from non–financial institutions the requirements of section 306A(3) apply. For details regarding section 306A(3) refer to the 'Record of loan terms and conditions' section in this guide.
For loans received from a financial institution, the sum of all amounts and the name of the financial institution.
For loans received from a person, the sum of all amounts and the name and address of the person.
In any other case, the name and address of the person or organisation from whom the money or gift-in-kind was received must be disclosed.
It is important to note that when consolidating amounts received from a single source, section 287(6) of the Act deems related bodies corporate to be the same entity.
Examples of amounts received that are required to be disclosed at Part 3 of the return:
Funds relating to a loan of $50 000 received from a financial institution
Funds relating to a loan of $20 000 received from a non-financial institution
A distribution of $14 000 from a trust which was paid into the bank account
A non-monetary gift valued at $15 000 relating to commercial premises provided to the associated entity rent free for a year. The market rent for the commercial premises is valued at $15 000.
The $35 000 is disclosed in Part 3 as it is more than the disclosure threshold.
The $9 500 is not required to be disclosed in Part 3 as it is less than the disclosure threshold. However, both amounts should be disclosed in Part 2a 'total receipts'.
An associated entity may provide additional clarifying information in situations where disclosure does not provide a clear picture of the underlying transactions. For example, associated entities may wish to separately identify receipts such as membership fees, subscriptions or loan funds or where the receipt of a gift was subsequently returned.
Part 4: Total payments for financial year 1 July 2015 to 30 June 2016
Section 314AEA(1)(b) of the Act requires that the total amount paid by, or on behalf of, the associated entity during the financial year must be disclosed.
To complete this part of the return, the associated entity must disclose all transactions that result in amounts, both above and below the disclosure threshold, being paid to external entities.
Amounts paid include, but are not limited to the following:
merchant service fees on credit/charge cards.
Examples of amounts paid that are required to be included in the calculation of 'total payments' at Part 4 of the return:
Loan repayments paid totalling $32 000.
Bank charges of $145 incurred.
Repayment of capital totalling $10 000.
Merchant service fees totalling $3 400.
Part 5: Total debts as at 30 June 2016
Section 314AEA(1)(c) of the Act requires that the total outstanding amount, as at the end of the financial year, of all debts incurred by, or on behalf of, the associated entity must be disclosed.
To complete this part of the return, the associated entity must disclose all debts that are outstanding as at 30 June 2016.
Debts include, but are not limited to the following:
Examples of debts outstanding as at 30 June 2016 that are required to be included in the calculation of 'total debts' at Part 5 of the return:
Loan from a financial institution with outstanding balance of $36 000.
Loan from a non-financial institution obtained in a previous financial year with outstanding balance of $8 000.
Invoices received, but not paid, from a supplier totalling $4 500.
Part 6: Debts of more than $13 000 as at 30 June 2016
Section 314AEA(5) and Section 314AE(1) of the Act requires that if the sum of all outstanding debts incurred by, or on behalf of, the associated entity to a person or organisation during a financial year is more than the disclosure threshold details of that sum must be disclosed.
Unlike when completing 'amounts received' at Part 3 of the return, all outstanding debts owed to an individual or organisation, including amounts that are individually less than the disclosure threshold, must be considered in calculating whether the total debt to that person or organisation exceeds the disclosure threshold.
Full name and address details of the person or organisation that the debt is owed to.
In the case of a debt to an unincorporated association (other than a registered industrial organisation), the name and address of the association, along with the name and address of each member of the executive committee of the association must be disclosed.
In the case of a debt to a trust or foundation, the name and description of the trust or foundation, along with the names and addresses of the trustees must be disclosed.
In any other case, the name and address of the person or organisation that the debt is owed must be disclosed.
Examples of debts outstanding that are required to be disclosed at Part 6 of the return:
A debt of $14 000 owed to a person, comprising two loans of $7 000.
A debt of $15 000 owed to an organisation which was obtained in a previous financial year.
Bank overdraft account balance of $24 300.
Amount owing on credit card totalling $13 450.
Invoices received from supplier totalling $17 400.
A loan from a financial institution with an outstanding balance of $45 000.
Part 7: Capital Contributions
Section 314AEA(3) of the Act requires that if any amounts paid by, or on behalf of, the associated entity during the financial year was paid to or for the benefit of one or more political parties and was paid out of funds generated from capital of the associated entity, details of each person who contributed to that capital must be disclosed.
Section 314AEA(3)(c) and (d) of the Act requires the name and address of the person and the total amount of the person's contribution to that capital, up to the end of the financial year to be disclosed.
Section 314AEA(4) provides that where contributions have been disclosed in a previous return sections 314AEA(3)(c) and (d) do not apply.
Associated entities may accumulate capital through various means, often through the receipt of deposits of funds.
Where the capital of an associated entity:
is used to generate earnings (for instance, through investments); and
any part of those earnings are paid to, or for the benefit of, a political party, including by way of appropriations;
the associated entity must disclose deposits of capital received since 16 June 1995, or since the last disclosure of capital in a disclosure return (whichever is later).