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Bill
- Part 1-1—Preliminary
- Part 1-2—Objects of this Act
- Part 2-1—Registration
- Part 2-2—Australian Charities and Not-for-profits Register
- Part 3-1—Governance standards and external conduct standards
- Part 3-2—Record keeping and reporting
- Part 3-3—Duty to notify
- Part 4-1—Information gathering and monitoring powers
- Part 4-2—Enforcement powers
- Part 5-1—The ACNC
- Part 5-2—The Commissioner
- Part 5-3—Finance and reporting requirements
- Part 6-1—The Advisory Board
- Part 7-1—Secrecy
- Part 7-2—Review and appeals
- Part 7-3—Penalties
- Part 7-4—Application of this Act to entities
- Part 7-5—Constitutional matters
- Part 7-6—Forms and regulations
- Part 8-1—Core concepts
- Part 8-2—Dictionary
2010-2011-2012
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
As passed by both Houses
Australian Charities and Not-for-profits Commission Bill 2012
No. , 2012
A Bill for an Act to establish the Australian Charities and Not-for-profits Commission and a national regulatory framework for the not-for-profit sector, and for related purposes
Contents
Part 1-1—Preliminary 2
Division 5—Preliminary 2
5-5......... Short title............................................................................................. 2
5-10....... Commencement................................................................................... 2
5-15....... Crown to be bound............................................................................. 3
5-20....... Extension to external Territories.......................................................... 3
Division 10—Guide to this Act 4
10-5....... Guide to this Act................................................................................. 4
Part 1-2—Objects of this Act 5
Division 15—Objects of this Act 5
15-5....... Objects of this Act.............................................................................. 5
15-10..... Commissioner to have regard to certain matters in exercising powers and functions 5
Chapter 2—Registration of not-for-profit entities 7
Part 2-1—Registration 7
Division 20—Object of this Part 7
20-5....... Object of this Part............................................................................... 7
Division 25—Entitlement to registration 8
25-1....... Simplified outline................................................................................ 8
25-5....... Entitlement to registration.................................................................... 8
Division 30—Process of registration 11
30-1....... Simplified outline.............................................................................. 11
30-5....... Application of this Division to various kinds of registration............. 11
30-10..... Applying for registration................................................................... 11
30-15..... Dealing with an application for registration....................................... 11
30-20..... Registration of entity......................................................................... 12
30-25..... Notifying outcome of application for registration.............................. 12
30-30..... Date of effect of registration.............................................................. 13
30-35..... Review of refusal of registration....................................................... 13
Division 35—Revoking registration 14
35-1....... Simplified outline.............................................................................. 14
35-5....... Application of this Division to various kinds of registration............. 14
35-10..... Revoking registration........................................................................ 15
35-15..... Notice to registered entity to show cause.......................................... 17
35-20..... Review of revocation of registration................................................. 17
Part 2-2—Australian Charities and Not-for-profits Register 18
Division 40—Australian Charities and Not-for-profits Register 18
40-1....... Simplified outline.............................................................................. 18
40-5....... Commissioner to maintain Australian Charities and Not-for-profits Register 18
40-10..... Commissioner may withhold or remove information from Register. 20
Chapter 3—Responsibilities of registered entities 22
Part 3-1—Governance standards and external conduct standards 22
Division 45—Governance standards 22
45-1....... Simplified outline.............................................................................. 22
45-5....... Object of this Division...................................................................... 22
45-10..... Regulations establishing governance standards................................. 23
45-15..... Consultation...................................................................................... 24
45-20..... Parliamentary scrutiny of standards.................................................. 25
Division 50—External conduct standards 26
50-1....... Simplified outline.............................................................................. 26
50-5....... Object of this Division...................................................................... 26
50-10..... External conduct standards................................................................ 27
50-15..... Consultation...................................................................................... 28
50-20..... Parliamentary scrutiny of standards.................................................. 29
Part 3-2—Record keeping and reporting 30
Division 55—Record keeping 30
55-1....... Simplified outline.............................................................................. 30
55-5....... Registered entities must keep records................................................ 30
55-10..... Recognised assessment activity ......................................................... 31
Division 60—Reporting 32
Subdivision 60-A—Overview 32
60-1....... Simplified outline.............................................................................. 32
Subdivision 60-AA—Object of this Division 32
60-3....... Object of this Division...................................................................... 32
Subdivision 60-B—Annual information statements 33
60-5....... Registered entities must give annual information statements............. 33
Subdivision 60-C—Annual financial reports 34
60-10..... Medium and large registered entities must give annual financial reports 34
60-15..... Requirements for annual financial reports......................................... 34
60-20..... Medium registered entities must have annual financial reports audited or reviewed 34
60-25..... Large registered entities must have annual financial reports audited.. 35
60-30..... Audit or review................................................................................. 35
60-35..... Audit or review to be conducted in accordance with auditing standards.. 36
60-40..... Auditor’s or reviewer’s independence declaration............................ 36
60-45..... Auditor’s report on annual financial report....................................... 37
60-50..... Reviewer’s report on annual financial report..................................... 37
60-55..... Auditor or reviewer to be provided with information and assistance 38
60-60..... Basic religious charities..................................................................... 38
Subdivision 60-D—Errors in information statements and financial reports 39
60-65..... Errors in information statements and financial reports...................... 39
Subdivision 60-E—Additional reporting requirements 39
60-70..... Object of this Subdivision................................................................. 39
60-75..... Additional reporting requirements—particular registered entity........ 39
60-80..... Additional reporting requirements—classes of registered entities..... 41
Subdivision 60-F—Substituted accounting periods 42
60-85..... Commissioner may approve a different accounting period................ 42
60-90..... Commissioner may impose conditions.............................................. 43
Subdivision 60-G—Collective and joint reporting 43
60-95..... Commissioner may approve collective or joint reporting by related entities 43
60-100... Commissioner may impose conditions.............................................. 45
60-105... Treatment of reporting groups as small, medium or large registered entities 45
Part 3-3—Duty to notify 47
Division 65—Duty to notify 47
65-1....... Simplified outline.............................................................................. 47
65-5....... Registered entities must notify Commissioner of certain matters...... 47
Chapter 4—Regulatory powers of the ACNC Commissioner 49
Part 4-1—Information gathering and monitoring powers 49
Division 70—Information gathering powers 49
70-1....... Simplified outline.............................................................................. 49
70-5....... Commissioner may obtain information and documents..................... 49
70-10..... Commissioner may inspect and copy original documents................. 50
70-15..... Commissioner may retain original documents................................... 51
70-20..... Commissioner may inspect and retain copies of documents.............. 51
70-25..... Self-incrimination.............................................................................. 51
Division 75—Monitoring 53
Subdivision 75-A—Overview 53
75-1....... Simplified outline.............................................................................. 53
Subdivision 75-B—Application of this Division 54
75-5....... Provisions subject to monitoring ...................................................... 54
75-10..... Information subject to monitoring ..................................................... 54
Subdivision 75-C—Monitoring powers 55
75-15..... ACNC officer may enter premises by consent or under a warrant.... 55
75-20..... Monitoring powers of ACNC officer s .............................................. 55
75-25..... Operating electronic equipment......................................................... 56
75-30..... Securing evidence of the contravention of a provision subject to monitoring 57
75-35..... Individuals assisting ACNC officer s ................................................ 59
75-40..... ACNC officer may ask questions and seek production of documents 60
Subdivision 75-D—Obligations and incidental powers of ACNC officers 61
75-45..... Consent............................................................................................. 61
75-50..... Announcement before entry under warrant....................................... 62
75-55..... ACNC officer to be in possession of warrant................................... 63
75-60..... Details of warrant etc. to be given to occupier................................... 63
75-65..... Expert assistance to operate electronic equipment............................. 63
75-70..... Compensation for damage to electronic equipment........................... 65
Subdivision 75-E—Occupier’s rights and responsibilities 66
75-75..... Occupier entitled to observe execution of warrant............................. 66
75-80..... Occupier to provide ACNC officer with facilities and assistance...... 66
Subdivision 75-F—Monitoring warrants 67
75-85..... Monitoring warrants......................................................................... 67
Subdivision 75-G—Powers of issuing officers 68
75-90..... Powers of issuing officers................................................................ 68
Subdivision 75-H—General provisions 68
75-95..... Identity cards..................................................................................... 68
Part 4-2—Enforcement powers 70
Division 80—Warnings 70
80-1....... Simplified outline.............................................................................. 70
80-5....... Commissioner may issue formal warning......................................... 70
Division 85—Directions 72
Subdivision 85-A—Overview 72
85-1....... Simplified outline.............................................................................. 72
Subdivision 85-B—Commissioner’s power to give directions 73
85-5....... Commissioner may give directions in certain circumstances............. 73
85-10..... Kinds of direction............................................................................. 74
85-15..... Power to comply with directions....................................................... 75
85-20..... Variation and revocation of directions............................................... 76
85-25..... Objections......................................................................................... 76
Subdivision 85-C—Non-compliance with a direction 77
85-30..... Non-compliance with a direction....................................................... 77
Division 90—Enforceable undertakings 78
90-1....... Simplified outline.............................................................................. 78
90-5....... Enforceable provisions..................................................................... 78
90-10..... Acceptance of undertakings.............................................................. 78
90-15..... Enforcement of undertakings............................................................ 80
Division 95—Injunctions 81
95-1....... Simplified outline.............................................................................. 81
95-5....... Enforceable provisions..................................................................... 81
95-10..... Injunctions relating to federally regulated entity etc........................... 82
95-15..... Grant of injunctions.......................................................................... 82
95-20..... Interim injunctions............................................................................ 83
95-25..... Discharging or varying injunctions................................................... 83
95-30..... Certain limits on granting injunctions not to apply............................ 83
95-35..... Court to take account of objects of this Act....................................... 84
95-40..... Other powers of a court unaffected................................................... 84
Division 100—Suspension and removal of responsible entities 85
Subdivision 100-A—Overview 85
100-1..... Simplified outline.............................................................................. 85
Subdivision 100-B—Suspension and removal of responsible entities 86
100-5..... Commissioner’s exercise of power under this Subdivision.............. 86
100-10... Suspension of responsible entities.................................................... 87
100-15... Removal of responsible entities......................................................... 89
100-20... Effect of suspension or removal—suspended or removed responsible entities must not be reappointed 90
100-25... Effect of suspension or removal—prohibition on managing the registered entity 91
Subdivision 100-C—Acting responsible entities 92
100-30... Appointment of acting responsible entities........................................ 92
100-35... Acting responsible entities of trusts with constitutional corporations as trustees 93
100-40... Terms and conditions of appointment of acting responsible entities.. 94
100-45... Termination of appointments of acting responsible entities............... 94
100-50... Resignation of acting responsible entities.......................................... 95
100-55... Powers of acting responsible entities................................................ 95
100-60... Commissioner may give directions to acting responsible entities...... 95
Subdivision 100-D—Special provisions about acting trustees 96
100-65... Property vesting orders..................................................................... 96
100-70... Property vested in acting trustee—former trustees’ obligations relating to books, identification of property and transfer of property............................................................................................. 96
Chapter 5—The Australian Charities and Not-for-profits Commission 99
Part 5-1—The ACNC 99
Division 105—Establishment and function of the ACNC 99
105-5..... Establishment.................................................................................... 99
105-10... Constitution of the ACNC................................................................ 99
105-15... Function of the ACNC...................................................................... 99
105-20 ... ACNC has privileges and immunities of the Crown......................... 99
Part 5-2—The Commissioner 100
Division 110—Establishment, functions and powers of the Commissioner 100
110-5..... Establishment.................................................................................. 100
110-10... Assistance functions of Commissioner........................................... 100
110-15... Powers of Commissioner................................................................ 100
110-20... Working with the Advisory Board.................................................. 101
Division 115—Terms and conditions of appointment 102
115-5..... Appointment................................................................................... 102
115-10... Term of appointment....................................................................... 102
115-15... Acting Commissioner..................................................................... 102
115-20... Remuneration.................................................................................. 102
115-25... Leave of absence............................................................................. 103
115-30... Disclosure of interests to the Minister............................................. 103
115-35... Outside employment....................................................................... 103
115-40... Other terms and conditions............................................................. 103
115-45... Resignation..................................................................................... 103
115-50... Termination of appointment............................................................ 103
115-55... Delegation....................................................................................... 104
Division 120—Staff and consultants 105
120-5..... Staff................................................................................................ 105
120-10... Consultants..................................................................................... 105
Part 5-3—Finance and reporting requirements 106
Division 125—ACNC Special Account 106
125-5..... ACNC Special Account.................................................................. 106
125-10... Credits to the Account..................................................................... 106
125-15... Purposes of the Account................................................................. 106
Division 130—Annual report 107
130-5..... Annual report.................................................................................. 107
Chapter 6—The Advisory Board 108
Part 6-1—The Advisory Board 108
Division 135—Establishment, functions and powers 108
135-5..... Establishment.................................................................................. 108
135-10... Membership.................................................................................... 108
135-15... Function and powers of Advisory Board........................................ 108
Division 140—Terms and conditions of appointment of members of the Advisory Board 110
140-5..... Appointment................................................................................... 110
140-10... Term of appointment....................................................................... 110
140-15... Remuneration and allowances......................................................... 110
140-20... Standing obligation to disclose interests.......................................... 111
140-25... Other terms and conditions............................................................. 111
140-30... Resignation..................................................................................... 111
140-35... Termination of appointment............................................................ 111
Division 145—Advisory Board procedures 112
145-5..... Meetings of the Advisory Board..................................................... 112
Chapter 7—Miscellaneous 114
Part 7-1—Secrecy 114
Division 150—Secrecy 114
Subdivision 150-A—Preliminary 114
150-5..... Objects of this Division.................................................................. 114
150-10... Application of this Division to entities other than ACNC officers.. 114
150-15... Meaning of protected ACNC information ....................................... 115
150-20... ACNC officer not required to provide information in certain cases 115
Subdivision 150-B—Disclosure of protected ACNC information by ACNC officers 115
150-25... Offence—disclosure or use of protected ACNC information......... 115
Subdivision 150-C—Authorised disclosure 116
150-30... Exception—disclosure in performance of duties under Act............ 116
150-35... Exception—disclosure on Register to achieve objects of this Act... 116
150-40... Exception—disclosure to an Australian government agency........... 116
150-45... Exception—disclosure or use with consent..................................... 117
150-50... Exception—disclosure of information lawfully made available to the public 117
Subdivision 150-D—On-disclosure of protected ACNC information 117
150-55... Offence—on-disclosure of protected ACNC information............... 117
150-60... Exception—on-disclosure or use for the purpose of the original exception 118
150-65... Exception—on-disclosure of information lawfully made available to the public 118
Part 7-2—Review and appeals 119
Division 155—Preliminary 119
155-5..... Application of this Part................................................................... 119
155-10... Decisions covered by single notice to be treated as single decision. 119
Division 160—Objections 120
160-5..... How objections are to be made....................................................... 120
160-10... When objection is to be made.......................................................... 120
160-15... Commissioner to decide objections................................................. 121
160-20... Entity may require Commissioner to make an objection decision.... 121
160-25... Entity may seek review of, or appeal against, Commissioner’s decision 122
Division 165—AAT review of objection decisions and extension of time refusal decisions 123
165-5..... Modified AAT Act to apply............................................................ 123
165-10... Sections 27, 41 and 44A of the AAT Act not to apply to certain decisions 123
165-15... Modification of section 29 of the AAT Act.................................... 123
165-20... Modification of section 30 of the AAT Act.................................... 124
165-25... Modification of section 37 of the AAT Act.................................... 124
165-30... Modification of section 38 of the AAT Act.................................... 125
165-35... Modification of section 43 of the AAT Act.................................... 126
165-40... Grounds of objection and burden of proof...................................... 126
165-45... Implementation of Tribunal decisions............................................. 126
165-50... Pending review not to affect implementation of administrative decisions 127
165-55... Reviews may be combined.............................................................. 127
Division 170—Court appeals against objection decisions 128
170-5..... Time limit for appeals...................................................................... 128
170-10... Grounds of objection and burden of proof...................................... 128
170-15... Order of court on objection decision............................................... 128
170-20... Implementation of court order in respect of objection decision....... 128
170-25... Pending appeal not to affect implementation of administrative decisions 129
170-30... Appeals may be combined.............................................................. 129
Part 7-3—Penalties 130
Division 175—Administrative penalties 130
Subdivision 175-A—Overview 130
175-1..... Simplified outline............................................................................ 130
Subdivision 175-B—Penalties for statements 130
175-5..... Application of this Subdivision to statements................................. 130
175-10... Penalty for false or misleading statements....................................... 130
175-15... Amount of penalty.......................................................................... 131
175-20... Base penalty amount ....................................................................... 132
175-25... Increase in penalty........................................................................... 132
175-30... Reduction of penalty if entity voluntarily tells the Commissioner... 133
Subdivision 175-C—Penalties for failing to lodge documents on time 134
175-35... Liability to penalty........................................................................... 134
175-40... Amount of penalty.......................................................................... 134
Subdivision 175-D—Machinery provisions for administrative penalties 135
175-45... Scope of Subdivision...................................................................... 135
175-50... Notification of liability.................................................................... 135
175-55... Due date for penalty........................................................................ 135
175-60... Remission of penalty....................................................................... 135
175-65... General interest charge on unpaid penalty....................................... 136
175-70... Collection of penalty by Commissioner of Taxation....................... 136
Part 7-4—Application of this Act to entities 138
Division 180—Obligations, liabilities and offences 138
Subdivision 180-A—Overview 138
180-1..... Simplified outline............................................................................ 138
Subdivision 180-B—Unincorporated associations and bodies of persons 138
180-5..... Obligations and liabilities................................................................ 138
180-10... Offences.......................................................................................... 139
180-15... Offences—defences........................................................................ 139
Subdivision 180-C—Trusts 140
180-20... Obligations and liabilities................................................................ 140
180-25... Offences.......................................................................................... 141
Subdivision 180-D—Bodies corporate 141
180-30... Liabilities......................................................................................... 141
Subdivision 180-E—Rights of indemnity and contribution 142
180-35... Rights of indemnity and contribution.............................................. 142
Part 7-5—Constitutional matters 143
Division 185—Constitutional matters 143
185-5..... Concurrent operation of State and Territory laws............................ 143
185-10... Compensation for acquisition of property....................................... 143
Part 7-6—Forms and regulations 144
Division 190—Requirements about giving material 144
Subdivision 190-A—Object of this Division 144
190-5..... Object of this Division.................................................................... 144
Subdivision 190-B—General provisions 144
190-10... Approved forms.............................................................................. 144
190-15... Commissioner may defer time for lodgement.................................. 145
190-20... Declaration by entity....................................................................... 145
190-25... Declaration by entity where agent gives document.......................... 145
190-30... Declaration by agent........................................................................ 146
190-35... Signing declarations........................................................................ 146
190-40... Returns etc. given by registered entities that can change the governing rules of other registered entities 147
Division 195—Address for service 148
195-5..... Address for service......................................................................... 148
195-10... How documents may be given........................................................ 148
Division 200—Regulations 150
200-5..... Regulations..................................................................................... 150
Chapter 8—Interpretation 151
Part 8-1—Core concepts 151
Division 205—Core concepts 151
Subdivision 205-A—Entities 151
205-5..... Entities............................................................................................ 151
205-10... Companies...................................................................................... 152
205-15... Federally regulated entity ................................................................ 152
205-20... Constitutional corporation .............................................................. 152
Subdivision 205-B—Registered entities 153
205-25... Small, medium and large registered entities..................................... 153
205-30... Responsible entity ............................................................................ 153
205-35... Basic religious charity .................................................................... 154
Subdivision 205-C—Other core concepts 156
205-40... Contribution .................................................................................... 156
Part 8-2—Dictionary 157
Division 300—Dictionary 157
300-5..... Dictionary....................................................................................... 157
A Bill for an Act to establish the Australian Charities and Not-for-profits Commission and a national regulatory framework for the not-for-profit sector, and for related purposes
Preamble
The Parliament of Australia recognises the unique nature and diversity of not-for-profit entities and the distinctive role that they play in Australia.
Not-for-profit entities promote a broad range of community, altruistic and philanthropic purposes. The not-for-profit sector delivers vital services and benefits to communities throughout Australia.
The not-for-profit sector receives a range of funding, including donations from members of the public and tax concessions, grants and other support from Australian governments.
It is important that a national regulatory system that promotes good governance, accountability and transparency for not-for-profit entities be introduced to maintain, protect and enhance public trust and confidence in the not-for-profit sector.
It is therefore necessary to establish a Commissioner of the Australian Charities and Not-for-profits Commission who will focus on the not-for-profit sector and will recognise and respond to the diversity and uniqueness of the sector.
The Parliament of Australia enacts:
Chapter 5 — The Australian Charities and Not-for-profits Commission