Parliamentary Joint Committee Report Tabled
Today the Parliamentary Joint Committee on Corporations and Financial Services tabled their Advisory Report on the Australian Charities and Not-for-profits Commission Bill 2012, the Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012 and the Tax Laws Amendment (Special Conditions for Not-for-profit Concessions) Bill 2012.
The Committee made several recommendations, including the recommendation that all three Bills be passed. Other recommendations included:
- Amending the definition of a 'basic religious charity' (BRC) in the Australian Charities and Not-for-profits Commission Bill 2012 so that an entity can retain their current status as a BRC where they operate a school building fund with deductible gift recipient status within the entity.
- Reviewing the thresholds for annual reporting as part of the five year review of the operation of the ACNC.
- Amemding the Bill so that the ACNC will accept school's reporting data from the Australian Curriculum, Assessment and Reporting Authority
- Once the ACNC is established, promptly engaging stakeholders to devise the governance and reporting requirements for the sector.
In relation to the 'In Australia' Bill, the Committee recommended that:
- The ATO circulate guidance material relating to Schedule 1, Item 38 of the Taxation Law Amendement (Special Conditions for Not-for-profit Concessions) Bill 2012.
- Treasury issue guidance material in relation to proposed section 995-1(1) of the Income Tax Assessment Act 1997, which will state the intent and indended consequence of the definition; state that the definition is intended to align with definitions of a 'not for profit company' in other statutes; and clarify that where entities return any surplus to the not-for-profit purpose, the entity shall not lose its tax exempt status.
The report also includes a dissenting report from the Coalition, and additional notes and recommendations from the Greens.
The full report is attached.
