Final Submission Available - Not-for-Profit Sector Tax Concession Working Group Discussion Paper (17/12/12)

Philanthropy Australia's submission in response to the Not-for-Profit Sector Tax Concession Working Group Discussion Paper 'Fairer, simpler and more effective tax concessions for the not-for-profit sector' is now available.

Download Philanthropy Australia's submission (PDF)

Final Submission Available - "Australian Charities and Not-for-Profits Bill Exposure Draft (20/07/12)

Philanthropy Australia's final submission in response to the second Exposure Draft of the Australian Charities and Not-for-Profits Commission (ACNC) Bill is now available and can be downloaded in PDF format.

Download Philanthropy Australia's submission (PDF)

Final Submission Available - "In Australia" (15/05/12)

Philanthropy Australia's final submission in response to the discussion paper, Restating and standardising the special conditions for tax concession entities (including the 'in Australia' conditions) is available for download in PDF format.

Many thanks to Members who provided feedback and suggestions. This draft legislation is intended to provide support to the anti-avoidance measures in the tax law which limit income tax exempt entities expending money offshore and ensure tax supported funds remain in Australia. It is also intended to lessen the likelihood of possible abuse of not-for-profit entities for money laundering and terrorist financing.

This is a short submission which addresses only a few points, as we believe the legislation will affect a relatively small number of Members and as many of the matters raised are outside Philanthropy Australia's mission and expertise.

Download Philanthropy Australia's submission (PDF)

Final Submission Available - Charitable fundraising regulation reform discussion paper and draft regulation impact statement (05/04/12)

Philanthropy Australia's final response to the Charitable fundraising regulation reform discussion paper and draft regulation impact statement is now available following submission to Treasury.

This is a short submission which addresses only a few points, as many of the matters raised are outside Philanthropy Australia's scope and mission. The main points covered are:

• A national approach to fundraising regulation must be truly national, and overlapping regulatory systems removed;
• There is a difference between "soliciting funds from the public" and "receipt of funds" which must be addressed in any reform;
• Donations to Private Ancillary Funds should be exempt from fundraising regulation, as they are not funds raised through public solicitation.

Download Philanthropy Australia's submission (PDF)

Final Submission Available - ACNC Bill & Governance Paper (27/01/12)

Philanthropy Australia's final response to the Exposure Draft of legislation to establish the Australian Charities and Not-for-profits Commission (ACNC), and to the Consultation Paper into governance arrangements for not-for-profit (NFP) organisations, is now available following submission to Treasury.

Philanthropy Australia has chosen to make a single submission to both the Exposure Draft and the Governance Paper as it is clear that both are linked and responses to the governance paper will feed into the undeveloped governance section of the draft legislation.

The main points in Philanthropy Australia's submission are:

• We support a principles-based approach to guiding the sector, rather than a prescriptive approach
• Legislation should establish the high level principles but should not mandate the specifics of how individual organisations respond to the framework; in particular, matters such as investment policies, insurance, etc should not be mandatory requirements as they are not appropriate for all NFPs
• It is vital to sector confidence and to the principles underlying establishment of the ACNC that there be no duplicate reporting to multiple legal regimes; therefore a priority should be to arrange co-operative agreements with States and Territories
• Entities which have had their charitable status revoked should be entitled to re-apply once the issue leading to revocation has been remedied
• Reporting should be required by 28 February after end of financial year, rather than 31 October, as is currently the case for PAFs
• There is potential for confusion between responsible individuals as defined in the consultation paper, and the specific legal term responsible person
• Entities which do not fundraise or access government grants (such as PAFs and private charitable trusts) should be accountable to the government through the Commissioner rather than mandatory reporting to the general public.

Download Philanthropy Australia's submission (PDF)

For more information:

• Download the Exposure Draft - Australian Charities and Not-for-Profits Commission Bill 2012 and associated Fact Sheets from Treasury website
• Download Consultation Paper into not-for-profit governance arrangements and associated Fact Sheet from Treasury website

Public Ancillary Funds: Draft Guidelines Submission (26/08/11)

Philanthropy Australia's final submission in response to the draft Public Ancillary Funds Guidelines is available for download. The submission can be downloaded by clicking here(PDF)

Please note that while all comments received by Members were read, noted and taken into account, it has not been possible to include all suggestions in this final submission. Philanthropy Australia as always encourages any Members who may be affected by these regulatory changes to make their own submissions, including financial data and modelling to provide evidence where possible.

For more information:
Download Philanthropy Australia's final response to Guidelines (PDF)
Download Philanthropy Australia's submission in response to the draft legislation(PDF)
Draft legislation and guidelines
Philanthropy Australia's first submission to initial discussion paper (PDF)

'In Australia' Special Conditions for Tax Concession Entities (09/08/11)

Treasury has released an Exposure Draft of legislation that will restate the 'In Australia' conditions for tax concession entities. This draft is intended to lessen the likelihood of possible abuse of not-for-profit entities for money laundering and terrorist financing.

This is a complex piece of legislation and following legal advice Philanthropy Australia has made a brief submission.

For more information:
Draft legislation and explanatory material
Download Philanthropy Australia's submission (PDF)

Public Ancillary Funds Exposure Draft (14/07/11)

Philanthropy Australia's submission in response to the exposure draft of legislation relating to the reform of Public Ancillary Funds (PuAFs) and also a set of draft Guidelines for PuAFs is available for download.

The main provisions in the exposure draft which will interest Members are:

• The guidelines will require PuAFs to distribute four percent of their net assets every year
• New PuAFs will be allowed a period of four years to build an appropriate level of funding before they are required to make a distribution
• The legislation defers the start date from the previously announced 1 July 2011 to 1 January 2012
• Trustees of existing funds will be given a choice whether apply the minimum distribution requirements in the new guidelines immediately or wait until 1 July 2012.

For more information:
Draft legislation and guidelines
Assistant Treasurer's Press Release

Scoping study for a national not-for-profit regulator (01/02/2011)

Philanthropy Australia's response to the Treasury consultation paper, Scoping study for a national not-for-profit regulator, is available for download by clicking here.(PDF) The discussion paper sought comment on the goals and scope of national regulation for the not-for-profit sector, and on the functions and form of a national regulator.

There are three questions in particular (out of 31 total in the paper) which Philanthropy Australia concentrated on as most relevant to the philanthropic sector:

Q5: Should the supervision of charitable trusts be moved from the state Attorney-Generals to a national regulator?
Q30: Would a statutory definition of charity achieve the goals of greater certainty and administrative efficiency in relation to the determination of charitable purpose, particularly in relation to determining access to taxation concessions and across different jurisdictions and laws?
Q31: Is Parliament a more appropriate body to define charitable status than the courts, given its ability to be more responsive to changing community needs and expectations?

You can download the consultation paper at http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=1934

Comments on the Inquiry into Tax Laws Amendment (Public Benefit Test) Bill 2010

June 2010

Philanthropy Australia has submitted comments in response to the Inquiry into Tax Laws Amendment (Public Benefit Test) Bill 2010.

Excerpt:

We would direct the Committee's attention to recommendation 7.1 of the Productivity Commission Report into the Contribution of the Not-for-Profit Sector as a more comprehensive and efficient way of ensuring clarity around the definition of charitable purposes.

RECOMMENDATION 7.1
The Australian Government should adopt a statutory definition of charitable purposes in accordance with the recommendations of the 2001 Inquiry into the Definition of Charities and Related Organisations.

Download the letter to the Senate Economics Legislation Committee

Submission in response to the exposure draft of the Corporations Amendment (Corporate Reporting Reform) Bill 2010

February 2010

Philanthropy Australia has made a submission in response to the exposure draft of the Corporations Amendment (Corporate Reporting Reform) Bill 2010. The proposed reforms comprise of a range of measures to improve Australia's corporate reporting framework, by reducing unnecessary red tape and regulatory burden on companies and implementing a number of other important refinements to the regulatory framework. Philanthropy Australia supports in general the proposed legislation as a step forward in reducing onerous reporting and audit requirements for a range of unlisted public company entities, particularly charitable not-for-profit companies limited by guarantee.

Download PDF of Philanthropy Australia's Submission

Final response to the Productivity Commission Draft Report on the Contribution of the Not-for-Profit Sector

November 2009

The Australian Government has asked the Productivity Commission to undertake a research study (under the chairmanship of Robert Fitzgerald) on the contribution of the not-for-profit (NFP) sector to society. This report is one of the most important Federal Government Reviews affecting the philanthropic and NFP sectors. Philanthropy Australia has provided general information, copies of submissions to other relevant inquiries and in response to a specific request from Mr Fitzgerald, made a formal submission to the Productivity Commission on 29 May 2009, providing an overview of the philanthropic sector and included the following summary and recommendations. Following the release of the Draft Report on the Contribution of the Not-for-Profit Sector on Wednesday, 14 October 2009, Philanthropy Australia made a further submission. The final report is to be released by the end of January 2010.

Download PDF of Philanthropy Australia's Submission

Final Response to the Private Ancillary Fund Draft Guidelines

July 2009

Philanthropy Australia's final response to the draft guidelines for Private Ancillary Funds (PAFs - formerly PPFs) is now available for download.

Download PDF of Philanthropy Australia's Response

Response to the Private Ancillary Fund Draft Guidelines

July 2009

Philanthropy Australia's response to the draft guidelines for Private Ancillary Funds (formerly PPFs) is now available for download. Thank you to all Members who provided input and feedback. For those who would like to make their own response to Treasury, the deadline is next Thursday, 23 July.

Download PDF of Philanthropy Australia's Response

Productivity Commission Review into the Contribution of the Not-for-profit Sector - Submission

June 2009

Philanthropy Australia has posted a submission to the Productivity Commission Review into the Contribution of the Not-for-profit Sector.

Download PDF of Philanthropy Australia's Submission

PPFs - Response to Draft Legislation

May 2009

Philanthropy Australia's response to Draft Legislation is on our website. The Guidelines will not be issued for another couple of weeks.

We advised that it is extremely difficult to respond to the Exposure Draft without having seen the Guidelines. While we support in principle the objectives of the legislation we reserve support for the detail until the Guidelines are released and can be considered. The majority of issues raised by our Members will be covered in the Guidelines and we will take the opportunity to make further submissions on the legislation once the Draft Guidelines are released.

The Exposure Draft - Improving the Integrity of Prescribed Private Funds is available at
http://www.treasury.gov.au/contentitem.asp?NavId=&ContentID=1541

Download PDF of Philanthropy Australia's Response

Exposure Draft of Legislation on Trustee Companies

May 2009

Philanthropy Australia has posted a submission to Treasury on the Exposure Draft of Legislation on Trustee Companies. In summary, our submission draws particular attention to the lack of a disclosure regime and lack of a dispute resolution framework, and issues around the common pooling of funds.

As a draft disclosure regime and a dispute resolution framework are yet to be released, at this stage Philanthropy Australia supports in principle the objectives of the legislation, but reserves support for the detail until a draft disclosure regime and a dispute resolution framework are made available for consideration, whereupon we may make further submissions.

The Exposure Draft of the Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009 is available at
http://www.treasury.gov.au/contentitem.asp?NavId=&ContentID=1533

Download PDF of Philanthropy Australia's Submission

Australia's Future Tax System - Submission to Treasury

April 2009

Philanthropy Australia’s final submission in response to the review of Australia's Future Tax System (known colloquially as the Henry Review) is now available for download.

The submission is brief and focuses on the possible discontinuation of the current dividend imputation regime as part of the Tax Review. A background paper by Dr Ian McKenzie, former Director of Macquarie Group and Assistant Secretary to the Australian Treasury, is included.

Download PDF of Submission

Improving the Integrity of Prescribed Private Funds - Submission to Treasury

January 2009

Philanthropy Australia's response to Treasury's discussion paper, released in late November 2008, was prepared after extensive consultation with members and non-members, including individual philanthropists, professional advisors representing a large number of PPFs, staff and trustees of existing PPFs, and representatives from the not-for-profit sector.

Download PDF of Submission

Review of PPFs Regulations - Submission to Treasury

August 2008

Philanthropy Australia's recommendation to Treasury is based on the need for transparency, efficiency and choice, to ensure that the maximum benefits of philanthropy flow to the community in perpetuity. We believe that it is in the interests of charities and the community, the Federal Government and the philanthropic sector that a clear regulatory framework for PPFs is simple to administer, monitor and comply with.

Download PDF of Submission

Comment on Australian Treasury Green Paper on Financial Services and Credit Reform - Trustee Corporations

August 2008

Philanthropy Australia welcomed the opportunity to submit ideas on the Australian Treasury Green Paper on Financial Services and Credit Reform with particular reference to Section 2 Trustee Corporations. Philanthropy Australia believes that the introduction of a national framework will encourage a more competitive environment with reduced regulatroy burden while enhancing oversight.

Download PDF of Submission & paper on Issues for Consideration

Submission to the Senate Standing Committee on Economics Inquiry on disclosure regimes for charities and nonprofit organisations

August 2008

Philanthropy Australia welcomed the opportunity to comment on the Senate Standing Committee on Economics Inquiry on disclosure regimes for charities and not-for-profit organisations.

Philanthropy Australia recommends:

• That the term nonprofit/not-for-profit organisation be replaced with the "Community Benefit Entity".
• That the Australian Government implement the Standard Chart of Accounts and data dictionary for Community Benefit Entity reporting developed by Prof. Myles McGregor-Lowndes, Queensland University of Technology.
• That the Australian Government work with the States to develop and promulgate a Community Benefit Entity financial reporting regime that allows for differential financial reporting based on assets, revenue and the level of public accountability expected of the Community Benefit Entity.
• Ideally, a Community Benefit Entity financial reporting regime would differentiate between Community Benefit Entities established for charitable purposes and those established for community purposes such as sporting clubs, private clubs and membership services organisations.

Philanthropy Australia supports the introduction of harmonised, consistent financial reporting requirements for Community Benefit Entities, no matter what the basis of their incorporation.

Download PDF

Australian Accounting Standards Board (AASB):
Request for Comment on a Proposed Revised Differential Reporting Regime for Australia and IASB - Exposure Draft of a Proposed IFRS for Small and Medium-sized Entities

September 2007

Philanthropy Australia was invited to comment on this ED. As the majority of our Members are not required to prepare general purpose financial reports, they are not directly affected by this proposal. However, our Members do depend on transparent and consistent reporting by organisations they fund as part of their grant assessment processes. Therefore Philanthropy Australia has made a submission which Stewart Leslie was commissioned to prepare for review by Philanthropy Australia’s Technical Committee.

Gina Anderson attended the consultation in Sydney. For details of the consultation and a copy of the Exposure Draft, please go to the AASB website.

Download PDF

Financial Reporting by Unlisted Companies

August 2007

Philanthropy Australia commissioned Mr Stewart Leslie from Causeway Consulting Pty Ltd - a former partner of KPMG and author of the Institute of Chartered Accountants report “Not-for-profit sector reporting: a research project” - to draft a brief submission. This was reviewed by the Philanthropy Australia Technical Committee and was submitted on 3 August 2007.

Download PDF

Submission to the Stronger Community Organisations Project

July 2007

The Department for Victorian Communities instigated the Stronger Community Organisations Project to provide advice on how Government, the community sector and business can work better together to meet the challenges being faced by community organisations. Philanthropy Australia provided a submission to the Project.

Download PDF

State Services Authority Review of Not-for-Profit Regulation

June 2007

In early 2007 the Victorian Premier and Treasurer instigated a review of not-for-profit regulation with the aim of reducing regulatory burden. The Review aimed to identify what practical improvements to Victorian regulatory arrangements for NFPs could be made without unduly reducing accountability and transparency. Philanthropy Australia lodged a submission.

Download PDF

Victorian Government Family and Community Development Committee Inquiry on the involvement of small and medium businesses in corporate social responsibility

June 2007

Philanthropy Australia made a submission to this Inquiry.

Download PDF

Joint Parliamentary Inquiry on Corporate Responsibility

September 2005

Philanthropy Australia, in consultation with its corporate members, made a submission to this Inquiry.

Download PDF

Community Foundations in Australia

2005

Making community philanthropy work: overcoming legal and regulatory barriers facing community foundations in Australia, a submisison to the Commonwealth Government.

Download PDF

Reforming Not-for-profit Regulation

The project was funded by the Australian Research Council and supported by Philanthropy Australia (under the Strategic Partnerships with Industry program). Carried out by University of Melbourne's Centre for Corporate Law and Securities Regulation researcher Susan Woodward, it is a three-year study of the appropriateness of the corporate legal framework for not-for-profit organisations, particularly in terms of accountability and good corporate governance.

Download PDF

Charities Definition Inquiry and Draft Charities Bill

The project was funded by the Australian Research Council and supported by Philanthropy Australia (under the Strategic Partnerships with Industry program). Carried out by University of Melbourne's Centre for Corporate Law and Securities Regulation researcher Susan Woodward, it is a three-year study of the appropriateness of the corporate legal framework for not-for-profit organisations, particularly in terms of accountability and good corporate governance.

The report of the Commonwealth Government's Inquiry into the Definition of Charitable and Related Organisations is now available through the Australian Government Publishing Service or downloadable from the Inquiry website at http://www.cdi.gov.au/. The inquiry was set up in 2000 to examine the legal framework of charitable organisations, including the definition of 'public benevolent institution' and other issues of importance to foundation trustees, staff and potential philanthropists.

On 17 May 2004 the Government announced that the common law meaning of a charity will continue to apply, but the definition will be extended to include certain child care and self-help groups, and closed or contemplative religious orders. The Government has decided not to proceed with the draft Charities Bill.

Download PDF (submission to Board of Taxation)

Download PDF (letter of support from VWT)