Source: http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/~/link.aspx?_id=57434B760FF7449D9A4449DB1144EE4A&_z=z
Timestamp: 2014-03-12 04:19:34
Document Index: 525785413

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

amend a number of Commonwealth statutes to alter references to ‘charity’, ‘charities’, ‘charitable entities’ and like terms so that concessions, exemptions and benefits are available only to charities registered with the Australian Charities and Not-for-profits Commission (ACNC) and create transitional arrangements to allow entities time to transition effectively to the national regulatory framework for the not-for-profit sector.
In addition, the Parliamentary Joint Committee on Human Rights (Parliamentary Human Rights Committee) noted that the Human Rights (Parliamentary Scrutiny) Act 2011 requires each Bill to be accompanied by a statement of compatibility. Proposed legislation that is not considered to raise any human rights issues is not exempt from the statement requirement. The Parliamentary Human Rights Committee has sought an explanation from the Treasurer for the absence of a statement of compatibility for this Bill.[7] Financial implications
The amendments in Schedule 1 to the Bill commence at the same time as Chapter 2 of the principal Bill. When enacted, the principal Bill will be the ACNC Act. The following discussion refers to the ACNC Act as if it had been enacted, as the operative provisions of the Bill will not commence unless the ACNC Act commences. Registration
Subitems 2(1) and (2) operate so that an entity that is already endorsed under the Income Tax Assessment Act 1997 (ITAA) as a charitable institution, a fund established for charitable purposes by will before 1 July 1997, a trust under paragraph 50–80(1)(c) of that Act ,or a fund established in Australian for public charitable purposes by will or instrument of trust on the day before the commencement day[10], is treated as having been registered as a charity under the ACNC Act. Where an entity notifies the ACNC Commissioner within 12 months of the commencement day that it was, on the day before the commencement day, a charity with a purpose that was the advancement of religion, the Commissioner is treated as having registered the entity on the commencement day: subitems 2(3)-(5). Item 6 applies in a similar way for religious institutions.
public benevolent institutions endorsed as such under section 123C of the FBT Assessment Act or endorsed as a deductible gift recipient under subdivision 30-BA of the ITAA. Item 5 provides for an entity to notify the Commissioner within six months of the commencement day that it wants to ‘opt out’ so that these provisions do not apply.
Subdivision 60-C of the ACNC Act (about annual financial reports) applies to the 2013–14 financial year and subsequent financial years. Subitem 9(2) operates so that a registered entity may give the Commissioner, voluntarily, a financial report for the financial year 2012–13. In addition, subitem 9(4) operates so that the voluntary financial report may be in respect of a substituted accounting period.
The amendments in Part 3 of Schedule 2 to the Bill commence at the same time as Chapter 2 of the ACNC Act. Items 42–67 amend the Fringe Benefits Tax Assessment Act 1986 (FBT Assessment Act) to insert consequential references to ‘registered health promotion charity’, ‘registered religious institution’ and ‘registered public benevolent institution’ so that the FBT Assessment Act uses terms which are consistent with the terms in the ACNC Act and the other statutes amended by this Bill. Part 4—Goods and services tax
The amendments in Part 4 of Schedule 2 to the Bill commence at the same time as Chapter 2 of the ACNC Act. Items 69–130 amend the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) to insert consequential references to ‘charities’, ‘ACNC registered religious institution’ and ‘endorsed charity’ so that the GST Act uses terms which are consistent with the terms in the ACNC Act and the other statutes amended by this Bill. Part 5—Corporations Act
Item 136 repeals and substitutes subsections 150(1) and (2) so that a company is not required to have the word ‘Limited’ at the end of its name if the company is registered as a charity under subsection 25–5(5) of the ACNC Act. In addition, the company’s constitution must prohibit the payment of fees to its directors and require directors to approve all other payments made by the company to the directors. Item 137 inserts proposed subsections 150(4) and (5) so that a company which is not required to have the word ‘Limited’ at the end of its name may omit the word anywhere that the name of the company is required to be used.
Item 138 of Part 6 of Schedule 2 to the Bill amends the Customs Tariff Act 1995 (Customs Tariff Act) to insert a definition of ‘registered charity’ into subsection 3(1) of that Act, being an entity that is registered under the ACNC Act as the type of entity mentioned in column 1 of item 1 of the table in subsection 25–5(5) of the ACNC Act. This amendment commences at the same time as Chapter 2 of the ACNC Act. Part II of Schedule 4 to the Customs Tariff Act sets out concessional rates of duty for prescribed classes of goods. Item 139 repeals the description of goods in item 23A of the Schedule and substitutes a new description which allows for goods that have been donated or bequeathed to a ‘registered charity’ to be duty free. This amendment commences at the same time as Chapter 2 of the ACNC Act. However the provisions do not commence at all if item 3 of Schedule 1 to the Customs Tariff Amendment (Schedule 4) Act 2012 commences at or before that time.[21]
‘registered charity’ being an entity that is registered under the ACNC Act[22] and ‘ACNC type of entity’ being an entity that meets the description of a type of entity in column 1 of the table in subsection 25–5(5) of the ACNC Act.[23]
objection decisions, as defined at section 160–15 of the ACNC Act and extension of time refusal decisions under subsection 160–10(4) of the ACNC Act.
Items 3–17 of Schedule 3 to the Bill amend the TA Act. In particular item 4 inserts subsections 14ZZ(2) and (3) into the TA Act so that a reference to appealing to the Federal Court is a reference to appealing to a ‘designated court’ as defined in the ACNC Act, in cases involving decisions under that Act. The provisions are consistent with section 170–30 of the ACNC Act which allows for appeals against decisions made by the ACNC Commissioner and the Commissioner of Taxation to be heard together if they are related and it would be efficient for the court to consider the decisions together. Item 17 inserts proposed subsections 426–65(2A) and (2B) into Schedule 1 of the TA Act so that the Australian Business Registrar may register on the Australian Business Register, in respect of an entity which is registered on the ACNC Register, a statement to that effect. In addition, the Australian Business Registrar may remove that statement in the event that registration on the ACNC register is revoked.
Items 20–24 in Part 3 of Schedule 3 to the Bill commence at the same time as Chapter 2 of the ACNC Act. Section 60–10 of the ACNC Act requires medium registered entities and large registered entities to give the Commissioner a financial report for a financial year, together with any auditor’s report that the entity may be required to obtain under another section of the ACNC Act. Items 20–23 of Schedule 3 to the Bill amend the Australian Securities and Investments Commission Act 2001 (ASIC Act) so that the term ‘Australian auditor’ includes an individual auditor, an audit firm or an audit company that conducts audits for the purpose of the ACNC Act so that auditors of registered not-for‑profit entities will be regulated by the Australian Securities and Investments Commission (ASIC).
[1]. Australian Charities and Not-for-profits Commission Bill 2012, Bill home page, viewed 6 September 2012, http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legislation%2Fbillhome%2Fr4871%22 [2]. Tax Laws Amendment (Special Conditions for Not-for-profit Concessions) Bill 2012, Bill home page, viewed 6 September 2012, http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legislation%2Fbillhome%2Fr4872%22 [3]. M Thomas and P Pyburne, Australian Charities and Not-for-profits Commission Bill 2012, Bills Digest, no. 21, 2012–13, Parliamentary Library, Canberra, 2012, viewed 20 September 2012, http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legislation%2Fbillsdgs%2F1927319%22 [4]. Details of the inquiry including the terms of reference, submissions, public hearings and the final report are at: http://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=corporations_ctte/charities/index.htm [5]. Details of the inquiry including the terms of reference, submissions, public hearings and the final report are at: http://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=clac_ctte/charities_commission/index.htm [6]. M Thomas and P Pyburne, op. cit.
[7]. Parliamentary Joint Committee on Human Rights, Second report of 2012, September 2012, p. 22, viewed 17 September 2012, http://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=humanrights_ctte/reports/index.htm [8]. Australian Government, Budget measures: budget paper no. 2: 2011–12, Commonwealth of Australia, Canberra, 2011, p. 322, viewed 20 September 2012, http://www.budget.gov.au/2011-12/content/bp2/download/bp2.pdf
[9]. Explanatory Memorandum, Australian Charities and Not-for-profits Commission Bill 2012 [and] Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012, p. 3, viewed 20 September 2012, http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legislation%2Fems%2Fr4871_ems_2aa5f93c-68d9-4f18-a3ee-863ffa982789%22 [10]. According to section 5–10 of the ACNC Act, the commencement day will be the later of 1 October 2012 and the day that this Bill receives Royal Assent.
[14]. That is, an entity that is registered under the ACNC Act as the type of entity mentioned in column 1 of item 1 of the table in subsection 25–5(5) of the ACNC Act – see item 20 of Schedule 2 to the Bill, which inserts a definition of ‘registered charity’ into subsection 995-1(1) of the ITAA 1997. [15]. That is, an entity that meets the description of a type of entity in column 1 of the table in subsection 25-5(5) of the ACNC Act – that is, a charity. See item 19 of Schedule 2 to the Bill, which inserts a definition of ‘ACNC type of entity’ into subsection 995-1(1) of the ITAA 1997.
[17]. For example, item 1.1.1 in the table contained in subsection 30–20(1) (inserted by item 4 of Schedule 2), item 2.1.1 in the table contained in subsection 30–25(1) (inserted by item 5 of Schedule 2) and item 4.1.6 in the table contained in subsection 30–45(1) (inserted by item 9 of Schedule 2). [18]. For example, item 1.1.3 in the table contained in subsection 30–20(1) (inserted by item 4 of Schedule 2), item 2.1.10 in the table contained in subsection 30–25(1) (inserted by item 5 of Schedule 2) and item 3.1.1 in the table contained in subsection 30–40(1) (inserted by item 8 of Schedule 2).
[21]. At the time of writing this Bills Digest, the Customs Tariff Amendment (Schedule 4) Bill 2012 had passed both Houses. The Bill homepage can be viewed at: http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legislation%2Fbillhome%2Fr4791%22 [22]. Items 143, 147, 149, 151, 160, 169, 173, 179, 191, 194, 200, 208 and 212 of Part 7 of Schedule 2 to the Bill.
[23]. Items 153, 155, 158, 177, 193, 199 and 211 of Part 7 of Schedule 2 to the Bill. [24]. For example, the responsibilities of secretaries and directors for contraventions under section 188 of the Corporations Act, as set out in item 6 of the table at proposed section 111L.