Not-for-profit sector reforms will be staged to allow organisations to transition to the new regulatory framework, Assistant Treasurer David Bradbury announced today.
The Australian Charities and Not-for-profits Commission (ACNC) will commence operations from 1 October 2012 as previously announced, while the governance standards, including the external conduct standards, and the financial reporting framework will now commence on 1 July 2013 with the first financial reports for medium and large registered entities now beginning to fall due after 1 July 2014. The ACNC will initially only regulate charities.
"The Gillard Government is committed to progressing these important reforms and this staged approach will help the sector transition to the new arrangements and provide additional time for consultation," said Mr Bradbury.
"As the governance standards and the financial reporting framework are finalised, the ACNC will work with the sector and provide guidance and information to help charities transition to the new regulatory framework – providing plenty of time for the sector to develop an understanding of the changes before they start to apply.
"Charities and other not-for-profits deliver vital assistance to some of the most vulnerable members of the Australian community and I would like to thank them for the important work they do and their partnership with the Government in implementing this reform agenda."
"The Gillard Government has announced the most ambitious reform agenda for Australia’s not-for-profit sector in history, including by developing a new national approach to fundraising laws, introducing a statutory definition of charity and introducing a new regulator for the sector," Mr Butler said.
"Effective engagement and consultation with the not-for-profit sector is critical to the shaping of these reforms."
The Government proposes to refer the draft ACNC legislation to the House of Representatives Standing Committee on Economics, for an inquiry over the Winter Parliamentary break.
The Government will then consider any recommendations the Committee makes, before introducing the legislation later this year.