NSW Charities to save as much as $15 million as Fair Trading cuts the red tape
Registered NSW charity and not-for-profit organisations will now be able to benefit from a recent agreement that has been signed by NSW Fair Trading and Australian Charities and Not-for-profits Commission (ACNC). This is a positive change for the charity sector and will see a reduction in unnecessary regulatory obligations and in fees of up to $15 million over the next decade.
Following this agreement, roughly 4000 NSW charities incorporated under the Associations Incorporation Act 2009 will no longer be required to pay an annual fee and only require to report to the ACNC by submitting an Annual Information Statement and financial report. ACNC Commissioner Dr Gary Johns praised this change as charities “can now spend more time and energy on delivering services and support to the people of NSW”.
However, as NSW Fair Trading oversees some of the responsibilities of incorporated associations, all incorporated associations must still notify NSW Fair Trading following changes to the association’s name, details or rules. A guideline on when to contact ACNC or NSW Fair Trading is available on the ACNC website.
What does this change mean for you?
Preceding this reform, financial reports submitted to NSW Fair Trading were treated as satisfying the ACNC requirements. However, as a result of these changes, medium or large organisations will need to ensure that they meet all the ACNC financial reporting obligations. The size of the charity is determined based on its total annual revenue for the financial year. Medium and large sized charities must prepare annual financial reports in accordance with the Australian Accounting Standards that provide a true and fair view, report on an accrual basis and ensure statements include required comparative figures. To accommodate this, ACNC has created a two-year transitional reporting arrangement. Further information regarding this can be found on its website.
Should you have any questions regarding these changes, please contact your ESV engagement partner on 02 9283 1666.