Document ID: chunk:federal_register_of_legislation:F2023C01018:reg:6:p2
Version: federal_register_of_legislation:F2023C01018
Segment Type: reg
Provision Reference: reg 6 (pt 2/15)
Character Range: 32896–35930

circumstances, such as its size, the sources of its funding, the nature of its activities and the needs of the public (including members, donors, employees, volunteers and benefit recipients of the registered entity).
      The compliance obligations, processes and reasonable steps specified in the governance standards are to be interpreted having regard to the objects of the Act and the matters the Commissioner must consider in exercising the Commissioner's powers as listed in section 15‑10 of the Act (in particular, the principles of regulatory necessity, reflecting risk and proportionate regulation, as well as the unique nature and diversity of not‑for‑profit entities and the distinctive role that they play in Australia).
      The objects of the Act are: to maintain, protect and enhance public trust and confidence in the Australian not‑for‑profit sector; 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 governance standards also act as a mechanism which may enliven the enforcement powers in Part 4‑2 of the Act to help protect and sustain the not‑for‑profit sector and maintain and enhance public trust and confidence.

45.2  Purpose of this Division
  For the purposes of section 45‑10 of the Act, the governance standards in Subdivision 45‑B of this Division are specified.

45.3  Interpretation of governance standards
  The governance standards in Subdivision 45‑B of this Division must be interpreted in a manner that is consistent with the objects of the Act and the requirements of section 15‑10 of the Act.

Subdivision 45‑B—Governance standards

45.5  Governance standard 1—Purposes and not‑for‑profit nature of a registered entity

Object
 (1) The object of this governance standard is:
 (a) to commit a registered entity, its members and its responsible entities to the registered entity's purposes; and
 (b) to give the public, including members, donors, employees, volunteers and benefit recipients of the registered entity, confidence that the registered entity is acting to further its purposes.

Standard
 (2) A registered entity must:
 (a) be able to demonstrate, by reference to the governing rules of the entity or by other means, its purposes and its character as a not‑for‑profit entity; and
 (b) make information about its purposes available to the public, including members, donors, employees, volunteers and benefit recipients; and
 (c) comply with its purposes and its character as a not‑for‑profit entity.
Note: Information in relation to the purposes of a registered entity would be available to the public if it appears on the Australian Charities and Not‑for‑profits Register or in an Australian law or is otherwise made available on request. Australian law could in 2022 be viewed on the Federal Register of Legislation website (www.legislation.gov.au) or on the AustLII website (http://www.austlii.edu.au).

45.10