The ACNC celebrated its fifth birthday in December 2017. As provided for in the original legislation, the Government is now conducting a review, the terms of reference indicating that it should:
- Examine the extent to which the objects of the ACNC Acts continue to be relevant.
- Assess the effectiveness of the provisions and the regulatory framework established by the ACNC Acts to achieve the objects.
- Consider whether the powers and the functions of the ACNC Commissioner are sufficient to enable these objects to be met.
- Consider whether any amendments to the ACNC Acts are required to enable the achievement of the objects and to equip the ACNC Commissioner to respond to both known and emerging issues.
The ACNC has made its response to the review available on its website: http://www.acnc.gov.au/ACNC/Comms/LN/LN_20180119.aspx
Its recommendations include:
- Increasing its powers to allow the ACNC to reveal reasons for its various decisions, such as why a charity has had its registration revoked.
- Requiring charities with revenue over $250,000 to comply with the accounting standard addressing related party disclosures.
- Allowing administrative penalties to be charged for late lodgement of reports.
- The ACNC and the Australian Accounting Standards Board to work together to develop suitable reporting requirements, including additional disclosures for related party transactions.
The public has also been invited to provide written submissions by 28 February 2018. See https://consult.treasury.gov.au/people-and-communications-division/acnc-legislation-review/ for more details.