The AICD has made a submission to the Treasury led consultation on draft Australian Charities and Not-for-profits Commission (ACNC) Regulations. The draft Regulations cover registered charity reporting thresholds, disclosure of remuneration and disclosure of related party transactions.
While recognising the proposed reporting thresholds are an improvement on existing settings, the AICD in its submission strongly encourages the Government to go further and adopt the reporting thresholds recommended under the ACNC Review. Adopting the thresholds from the ACNC Review will ensure they remain fit-for-purpose for a longer period and will result in a greater proportion of registered charities benefiting from reduced compliance costs. The reduction in compliance costs will ultimately result in charities having more resources to pursue their charitable purposes.
The AICD supports in the submission the disclosure of material related party transactions by registered charities and encourages the ACNC to work with the sector to develop practical guidance that assists in efficiently implementing the new requirements. We also support the disclosure of remuneration of responsible persons and senior executives by large charities at an aggregated level. However, or view is that the disclosure of related party transactions and remuneration should be aligned to be from the 2022/23 reporting period to provide sufficient time for charities to prepare and the ACNC to issue guidance.
A copy of the submission is available here.