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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
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Australian Charities and Not-for-profits Commission Bill 2012
No. , 2012
(Treasury)
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
Division 50—External conduct standards 24
50-1....... Simplified outline.............................................................................. 24
50-5....... Object of this Division...................................................................... 24
50-10..... External conduct standards................................................................ 25
Part 3-2—Record keeping and reporting 26
Division 55—Record keeping 26
55-1....... Simplified outline.............................................................................. 26
55-5....... Registered entities must keep records................................................ 26
55-10..... Recognised assessment activity ......................................................... 27
Division 60—Reporting 28
Subdivision 60-A—Overview 28
60-1....... Simplified outline.............................................................................. 28
Subdivision 60-B—Annual information statements 28
60-5....... Registered entities must give annual information statements............. 28
Subdivision 60-C—Annual financial reports 29
60-10..... Medium and large registered entities must give annual financial reports 29
60-15..... Requirements for annual financial reports......................................... 29
60-20..... Medium registered entities must have annual financial reports audited or reviewed 30
60-25..... Large registered entities must have annual financial reports audited.. 30
60-30..... Audit or review................................................................................. 30
60-35..... Audit or review to be conducted in accordance with auditing standards.. 32
60-40..... Auditor’s or reviewer’s independence declaration............................ 32
60-45..... Auditor’s report on annual financial report....................................... 32
60-50..... Reviewer’s report on annual financial report..................................... 33
60-55..... Auditor or reviewer to be provided with information and assistance 33
60-60..... Basic religious charities..................................................................... 34
Subdivision 60-D—Errors in information statements and financial reports 34
60-65..... Errors in information statements and financial reports...................... 34
Subdivision 60-E—Additional reporting requirements 34
60-70..... Object of this Subdivision................................................................. 34
60-75..... Additional reporting requirements—particular registered entity........ 35
60-80..... Additional reporting requirements—classes of registered entities..... 36
Subdivision 60-F—Substituted accounting periods 37
60-85..... Commissioner may approve a different accounting period................ 37
60-90..... Commissioner may impose conditions.............................................. 38
Subdivision 60-G—Collective and joint reporting 38
60-95..... Commissioner may approve collective or joint reporting by related entities 38
60-100... Commissioner may impose conditions.............................................. 40
60-105... Treatment of reporting groups as small, medium or large registered entities 40
Part 3-3—Duty to notify 42
Division 65—Duty to notify 42
65-1....... Simplified outline.............................................................................. 42
65-5....... Registered entities must notify Commissioner of certain matters...... 42
Chapter 4—Regulatory powers of the ACNC Commissioner 44
Part 4-1—Information gathering and monitoring powers 44
Division 70—Information gathering powers 44
70-1....... Simplified outline.............................................................................. 44
70-5....... Commissioner may obtain information and documents..................... 44
70-10..... Commissioner may inspect and copy original documents................. 45
70-15..... Commissioner may retain original documents................................... 46
70-20..... Commissioner may inspect and retain copies of documents.............. 46
70-25..... Self-incrimination.............................................................................. 46
Division 75—Monitoring 48
Subdivision 75-A—Overview 48
75-1....... Simplified outline.............................................................................. 48
Subdivision 75-B—Application of this Division 49
75-5....... Provisions subject to monitoring ...................................................... 49
75-10..... Information subject to monitoring ..................................................... 49
Subdivision 75-C—Monitoring powers 50
75-15..... ACNC officer may enter premises by consent or under a warrant.... 50
75-20..... Monitoring powers of ACNC officer s .............................................. 50
75-25..... Operating electronic equipment......................................................... 51
75-30..... Securing evidence of the contravention of a provision subject to monitoring 52
75-35..... Individuals assisting ACNC officer s ................................................ 54
75-40..... ACNC officer may ask questions and seek production of documents 55
Subdivision 75-D—Obligations and incidental powers of ACNC officers 56
75-45..... Consent............................................................................................. 56
75-50..... Announcement before entry under warrant....................................... 57
75-55..... ACNC officer to be in possession of warrant................................... 58
75-60..... Details of warrant etc. to be given to occupier................................... 58
75-65..... Expert assistance to operate electronic equipment............................. 58
75-70..... Compensation for damage to electronic equipment........................... 60
Subdivision 75-E—Occupier’s rights and responsibilities 61
75-75..... Occupier entitled to observe execution of warrant............................. 61
75-80..... Occupier to provide ACNC officer with facilities and assistance...... 61
Subdivision 75-F—Monitoring warrants 62
75-85..... Monitoring warrants......................................................................... 62
Subdivision 75-G—Powers of issuing officers 63
75-90..... Powers of issuing officers................................................................ 63
Subdivision 75-H—General provisions 63
75-95..... Identity cards..................................................................................... 63
Part 4-2—Enforcement powers 65
Division 80—Warnings 65
80-1....... Simplified outline.............................................................................. 65
80-5....... Commissioner may issue formal warning......................................... 65
Division 85—Directions 67
Subdivision 85-A—Overview 67
85-1....... Simplified outline.............................................................................. 67
Subdivision 85-B—Commissioner’s power to give directions 68
85-5....... Commissioner may give directions in certain circumstances............. 68
85-10..... Kinds of direction............................................................................. 69
85-15..... Power to comply with directions....................................................... 70
85-20..... Variation and revocation of directions............................................... 71
85-25..... Objections......................................................................................... 71
Subdivision 85-C—Non-compliance with a direction 72
85-30..... Non-compliance with a direction....................................................... 72
Division 90—Enforceable undertakings 73
90-1....... Simplified outline.............................................................................. 73
90-5....... Enforceable provisions..................................................................... 73
90-10..... Acceptance of undertakings.............................................................. 73
90-15..... Enforcement of undertakings............................................................ 75
Division 95—Injunctions 76
95-1....... Simplified outline.............................................................................. 76
95-5....... Enforceable provisions..................................................................... 76
95-10..... Injunctions relating to federally regulated entity etc........................... 77
95-15..... Grant of injunctions.......................................................................... 77
95-20..... Interim injunctions............................................................................ 78
95-25..... Discharging or varying injunctions................................................... 78
95-30..... Certain limits on granting injunctions not to apply............................ 78
95-35..... Court to take account of objects of this Act....................................... 79
95-40..... Other powers of a court unaffected................................................... 79
Division 100—Suspension and removal of responsible entities 80
Subdivision 100-A—Overview 80
100-1..... Simplified outline.............................................................................. 80
Subdivision 100-B—Suspension and removal of responsible entities 81
100-5..... Commissioner’s exercise of power under this Subdivision.............. 81
100-10... Suspension of responsible entities.................................................... 82
100-15... Removal of responsible entities......................................................... 84
100-20... Effect of suspension or removal—suspended or removed responsible entities must not be reappointed 85
100-25... Effect of suspension or removal—prohibition on managing the registered entity 85
Subdivision 100-C—Acting responsible entities 87
100-30... Appointment of acting responsible entities........................................ 87
100-35... Acting responsible entities of trusts with constitutional corporations as trustees 87
100-40... Terms and conditions of appointment of acting responsible entities.. 89
100-45... Termination of appointments of acting responsible entities............... 89
100-50... Resignation of acting responsible entities.......................................... 89
100-55... Powers of acting responsible entities................................................ 89
100-60... Commissioner may give directions to acting responsible entities...... 90
Subdivision 100-D—Special provisions about acting trustees 90
100-65... Property vesting orders..................................................................... 90
100-70... Property vested in acting trustee—former trustees’ obligations relating to books, identification of property and transfer of property............................................................................................. 91
Chapter 5—The Australian Charities and Not-for-profits Commission 93
Part 5-1—The ACNC 93
Division 105—Establishment and function of the ACNC 93
105-5..... Establishment.................................................................................... 93
105-10... Constitution of the ACNC................................................................ 93
105-15... Function of the ACNC...................................................................... 93
105-20 ... ACNC has privileges and immunities of the Crown......................... 93
Part 5-2—The Commissioner 94
Division 110—Establishment, functions and powers of the Commissioner 94
110-5..... Establishment.................................................................................... 94
110-10... Assistance functions of Commissioner............................................. 94
110-15... Powers of Commissioner.................................................................. 94
110-20... Working with the Advisory Board.................................................... 95
Division 115—Terms and conditions of appointment 96
115-5..... Appointment..................................................................................... 96
115-10... Term of appointment......................................................................... 96
115-15... Acting Commissioner....................................................................... 96
115-20... Remuneration.................................................................................... 96
115-25... Leave of absence............................................................................... 97
115-30... Disclosure of interests to the Minister............................................... 97
115-35... Outside employment......................................................................... 97
115-40... Other terms and conditions............................................................... 97
115-45... Resignation....................................................................................... 97
115-50... Termination of appointment.............................................................. 97
115-55... Delegation......................................................................................... 98
Division 120—Staff and consultants 99
120-5..... Staff.................................................................................................. 99
120-10... Consultants....................................................................................... 99
Part 5-3—Finance and reporting requirements 100
Division 125—ACNC Special Account 100
125-5..... ACNC Special Account.................................................................. 100
125-10... Credits to the Account..................................................................... 100
125-15... Purposes of the Account................................................................. 100
Division 130—Annual report 101
130-5..... Annual report.................................................................................. 101
Chapter 6—The Advisory Board 102
Part 6-1—The Advisory Board 102
Division 135—Establishment, functions and powers 102
135-5..... Establishment.................................................................................. 102
135-10... Membership.................................................................................... 102
135-15... Function and powers of Advisory Board........................................ 102
Division 140—Terms and conditions of appointment of members of the Advisory Board 104
140-5..... Appointment................................................................................... 104
140-10... Term of appointment....................................................................... 104
140-15... Remuneration and allowances......................................................... 104
140-20... Standing obligation to disclose interests.......................................... 105
140-25... Other terms and conditions............................................................. 105
140-30... Resignation..................................................................................... 105
140-35... Termination of appointment............................................................ 105
Division 145—Advisory Board procedures 106
145-5..... Meetings of the Advisory Board..................................................... 106
Chapter 7—Miscellaneous 108
Part 7-1—Secrecy 108
Division 150—Secrecy 108
Subdivision 150-A—Preliminary 108
150-5..... Objects of this Division.................................................................. 108
150-10... Application of this Division to entities other than ACNC officers.. 108
150-15... Meaning of protected ACNC information ....................................... 109
150-20... ACNC officer not required to provide information in certain cases 109
Subdivision 150-B—Disclosure of protected ACNC information by ACNC officers 109
150-25... Offence—disclosure or use of protected ACNC information......... 109
Subdivision 150-C—Authorised disclosure 110
150-30... Exception—disclosure in performance of duties under Act............ 110
150-35... Exception—disclosure on Register to achieve objects of this Act... 110
150-40... Exception—disclosure to an Australian government agency........... 110
150-45... Exception—disclosure or use with consent..................................... 111
150-50... Exception—disclosure of information lawfully made available to the public 111
Subdivision 150-D—On-disclosure of protected ACNC information 111
150-55... Offence—on-disclosure of protected ACNC information............... 111
150-60... Exception—on-disclosure or use for the purpose of the original exception 112
150-65... Exception—on-disclosure of information lawfully made available to the public 112
Part 7-2—Review and appeals 113
Division 155—Preliminary 113
155-5..... Application of this Part................................................................... 113
155-10... Decisions covered by single notice to be treated as single decision. 113
Division 160—Objections 114
160-5..... How objections are to be made....................................................... 114
160-10... When objection is to be made.......................................................... 114
160-15... Commissioner to decide objections................................................. 115
160-20... Entity may require Commissioner to make an objection decision.... 115
160-25... Entity may seek review of, or appeal against, Commissioner’s decision 116
Division 165—AAT review of objection decisions and extension of time refusal decisions 117
165-5..... Modified AAT Act to apply............................................................ 117
165-10... Sections 27, 41 and 44A of the AAT Act not to apply to certain decisions 117
165-15... Modification of section 29 of the AAT Act.................................... 117
165-20... Modification of section 30 of the AAT Act.................................... 118
165-25... Modification of section 37 of the AAT Act.................................... 118
165-30... Modification of section 38 of the AAT Act.................................... 119
165-35... Modification of section 43 of the AAT Act.................................... 120
165-40... Grounds of objection and burden of proof...................................... 120
165-45... Implementation of Tribunal decisions............................................. 120
165-50... Pending review not to affect implementation of administrative decisions 121
165-55... Reviews may be combined.............................................................. 121
Division 170—Court appeals against objection decisions 122
170-5..... Time limit for appeals...................................................................... 122
170-10... Grounds of objection and burden of proof...................................... 122
170-15... Order of court on objection decision............................................... 122
170-20... Implementation of court order in respect of objection decision....... 122
170-25... Pending appeal not to affect implementation of administrative decisions 123
170-30... Appeals may be combined.............................................................. 123
Part 7-3—Penalties 124
Division 175—Administrative penalties 124
Subdivision 175-A—Overview 124
175-1..... Simplified outline............................................................................ 124
Subdivision 175-B—Penalties for statements 124
175-5..... Application of this Subdivision to statements................................. 124
175-10... Penalty for false or misleading statements....................................... 124
175-15... Amount of penalty.......................................................................... 125
175-20... Base penalty amount ....................................................................... 126
175-25... Increase in penalty........................................................................... 126
175-30... Reduction of penalty if entity voluntarily tells the Commissioner... 127
Subdivision 175-C—Penalties for failing to lodge documents on time 128
175-35... Liability to penalty........................................................................... 128
175-40... Amount of penalty.......................................................................... 128
Subdivision 175-D—Machinery provisions for administrative penalties 129
175-45... Scope of Subdivision...................................................................... 129
175-50... Notification of liability.................................................................... 129
175-55... Due date for penalty........................................................................ 129
175-60... Remission of penalty....................................................................... 129
175-65... General interest charge on unpaid penalty....................................... 130
175-70... Collection of penalty by Commissioner of Taxation....................... 130
Part 7-4—Application of this Act to entities 132
Division 180—Obligations, liabilities and offences 132
Subdivision 180-A—Overview 132
180-1..... Simplified outline............................................................................ 132
Subdivision 180-B—Unincorporated associations and bodies of persons 132
180-5..... Obligations and liabilities................................................................ 132
180-10... Offences.......................................................................................... 133
180-15... Offences—defences........................................................................ 133
Subdivision 180-C—Trusts 134
180-20... Obligations and liabilities................................................................ 134
180-25... Offences.......................................................................................... 135
Subdivision 180-D—Bodies corporate 135
180-30... Liabilities......................................................................................... 135
Subdivision 180-E—Rights of indemnity and contribution 136
180-35... Rights of indemnity and contribution.............................................. 136
Part 7-5—Constitutional matters 137
Division 185—Constitutional matters 137
185-5..... Concurrent operation of State and Territory laws............................ 137
185-10... Compensation for acquisition of property....................................... 137
Part 7-6—Forms and regulations 138
Division 190—Requirements about giving material 138
Subdivision 190-A—Object of this Division 138
190-5..... Object of this Division.................................................................... 138
Subdivision 190-B—General provisions 138
190-10... Approved forms.............................................................................. 138
190-15... Commissioner may defer time for lodgement.................................. 139
190-20... Declaration by entity....................................................................... 139
190-25... Declaration by entity where agent gives document.......................... 139
190-30... Declaration by agent........................................................................ 140
190-35... Signing declarations........................................................................ 140
Division 195—Address for service 142
195-5..... Address for service......................................................................... 142
195-10... How documents may be given........................................................ 142
Division 200—Regulations 144
200-5..... Regulations..................................................................................... 144
Chapter 8—Interpretation 145
Part 8-1—Core concepts 145
Division 205—Core concepts 145
Subdivision 205-A—Entities 145
205-5..... Entities............................................................................................ 145
205-10... Companies...................................................................................... 146
205-15... Federally regulated entity ................................................................ 146
205-20... Constitutional corporation .............................................................. 146
Subdivision 205-B—Registered entities 147
205-25... Small, medium and large registered entities..................................... 147
205-30... Responsible entity ............................................................................ 147
205-35... Basic religious charity .................................................................... 148
Subdivision 205-C—Other core concepts 149
205-40... Contribution .................................................................................... 149
Part 8-2—Dictionary 151
Division 300—Dictionary 151
300-5..... Dictionary....................................................................................... 151
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