This job has been filled as at 23/10/2014.  For further information please contact:

Tony Grierson 

   P:  +61 (2) 9043 2919

   M: +61 (0) 412 368 186

   E:   tony.grierson@aegeus.asia

   W:  www.aegeus.asia   

   L:   www.linkedin.com/in/tonygrierson

 

About the research

The ACNC engaged Ernst & Young (EY) to research the regulatory and reporting burden on charities. While this research focusses on Commonwealth burden, it also considers state and territory burden. This report provides the ACNC an independent insight into the source and scale of government requirements on charities, and to identify which of these requirements constitute red tape. The report examines the experiences of 15 case study charities drawn from subsectors in which there was anecdotal evidence of significant red tape and where research on the burdens imposed was lacking: social welfare, other education (excluding schools and universities) and health/aged care. EY also surveyed nearly 400 charities and analysed publicly available data.

A key finding is that Commonwealth funding agreement obligations impose a greater burden on charities than legislative obligations.

The report also found:

• Commonwealth burden is impacting on charities’ ability to achieve charitable outcomes
  
• Commonwealth reporting burden on the 15 case study charities averaged an estimated $108,000 for the 2012-13 year, with between $27,000 and $38,000 constituting red tape. The average Commonwealth burden was $18,000 for small charities (charities with revenue less than $250,000 per annum) and $235,000 for large charities (charities with revenue over $1 million per annum)
  
• Estimated average annual burden imposed by ACNC reporting obligations was $150, or 0.1 per cent of total annual burden
  

Most common sources of red tape for charities include:

• overly-frequent reporting and excessive information requirements under funding programs
  
• duplication of information required under multiple funding programs and across different levels of government
  
• inconsistency in financial reporting requirements and processes across government; and
  
• inconsistencies in key regulatory frameworks across the states and territories, particularly with fundraising and incorporated associations regulations.

Key recommendations include that the ACNC should:

• work together with other departments and agencies to encourage the early adoption of available tools to reduce red tape
  
• consider adopting an ‘honest-broker’ role to drive government reforms to further reduce burden.
  

Sourced from: http://www.acnc.gov.au/ACNC/Pblctns/Rpts/EY_Report/ACNC/Publications/Reports/EY_report.aspx

There are over 600,000 Not-for-Profit organisations in Australia.
This growing sector is gaining new opportunities and facing new challenges.
To provide real insight on these issues, ACU has assembled a panel of experts in the fields of Human Resources, Finance and Governance.

Don’t miss this much anticipated event

“3 hot topics in the Not-For-Profit sector”

You will hear NFP experts from organisations including:
Fred Hollows Foundation
Benevolent Society
Australian Red Cross
Save the Children Australia

When: Wednesday November 12th 2014, 5.30pm - 7.30pm
Where: Australian Catholic University, Daniel Mannix Building
Room 7.02, Level 7,17 Young Street Fitzroy VIC 3065
(Parking available)

Register here:  http://www.acu.edu.au/about_acu/faculties,_institutes_and_centres/law_and_business/school_of_business/forms/nfp_panel_discussion_melb

With most charities holding their Annual General Meetings over the next few months, a new resources page has been created by the charity regulator to help Not for Profits understand their obligations.

The national charity regulator, the ACNC, has developed a dedicated resources page to help charities during this period.

The regulator says an AGM aims to give members a report on the charity’s activities and finances for the previous year, to allow time for them to ask questions, and to elect board or committee members.

If charities make certain changes at their AGM (such as to legal name, responsible persons or governing documents), they must notify the ACNC.

ACNC Assistant Commissioner Murray Baird said charities should also take the opportunity during AGM season to remind themselves of the ACNC governance standards and consider how they can demonstrate that they are meeting these standards.

Although the ACNC does not require charities to hold an AGM, charities should check their rules and any legislation that applies to them to find out whether they are required to do so.

The ACNC says it will be developing further resources such as template minutes, agendas and notices for AGMs over the next months to support charities to hold their AGMs.

“Annual General Meetings are one of the most important times in the annual calendar of a charity. They provide an opportunity for members to gather and participate together in governance,” Baird said.

“Holding an AGM is one of the key ways a charity can demonstrate accountability to its members, celebrate achievements and focus on the year ahead.

“The ACNC encourages charities to use their AGM to review activities and finances from the previous year. Having this information at hand will help to prepare for their reporting obligations to the ACNC.”

Sourced from ProBono Australia - Resource directory here: http://acnc.gov.au/ACNC/Manage/Tools/ACNC/Edu/Tools/AGM_ACNC.aspx

Highly respected global business advisor, Steven Bowman, has released a new app called Board Essentials aimed at directors of corporate and non-profit organisations. This is the first app of its type in the world.

The app is the culmination of over 35 years in the business world and the result of holding numerous CEO and Board positions in the finance, nonprofit and private sector.

"We developed the app based on feedback received from personally dealing with over 1000 Company Directors and senior executives each year. The most common questions I’m asked by Directors is how they can add real value to board meetings, before, during and after the meeting. Many of them believe their primary role is to make sure the staff is busy but the gift of a good director is the questions they are willing to ask, rather than the answers they provide. This app will step them through how to do that and view their role in a different way.”

Steve is a renowned public speaker and global advisor to Boards and CEOs and worked as a senior executive team and Board specialist for large companies such as ANZ, Melbourne University and the Department of Health, to name only a very few.

The app also includes 29 videos on topics such as vision statements and how to use them to strategic advantage; secrets to developing and reading financial reports; using risk for strategic advantage as well as numerous other tools based on what his clients have found most useful over his time in the sector.

"I think we need to go back to the basics of what a board's role is in the first place. " says Bowman.

"What if all the governance processes policies, strategies , financial reporting and risk management programs we put in place were just tools to assist the board to “make the choices that create the future for the communities they serve”? I really hope to be able to get those in senior positions asking the questions which can help create outstanding organisations where both innovation and productivity are at optimum capacity."

To purchase and download the app ($12.99)
http://strategicboardessentials.com/board-apps/

Comments from users of the app
“I have acted on a few of the new insights i.e. adapted my agenda already for next weeks Board meeting, we were about to review the performance so I have amended based on the tips in the app, and beefed up the focus on variances. More change will follow. “
CEO, Te Waipuna Puawai, New Zealand

“After downloading and familiarising with the app I have recommended to the rest of my board that this is an essential tool to have in their arsenal and look forward to utilising at our next meeting.”
Chair, ETCO, AUstralia

“A very special app! An awesome investment-lots of tools that work!
Incredibly thought provoking and invaluable for any organisation and anyone who wants to make a difference in their organisation. Thank you for making this available at this time.”
CEO, Aura-Soma UK; Director and Partner, Streets Tax Advisors & Chartered Accountants UK

Do you know a successful young leader with a passion to grow New Zealand’s tourism industry, or an individual who has made a fantastic contribution to the industry over many years?

Entries are now open for the 2014 Tourism Industry Awards, organised by the Tourism Industry Association New Zealand to celebrate excellence in New Zealand’s $24 billion tourism industry.

The PATA New Zealand Trust Young Tourism Leader Award will be presented to a young person (35 years or under as at 31 March 2014) who is successfully contributing to their workplace and also engaging in improving the wider industry.

PATA New Zealand Trust chairwoman Glenys Coughlan says the Young Tourism Leader Award aims to recognise the efforts of young tourism leaders who have the vision and capability to take the industry forward.

“If our tourism industry is to continue to remain competitive on the world stage and grow the contribution it makes to New Zealand then we need to be growing our pool of outstanding young leaders," she says.

The Crowe Horwath International Sir Jack Newman Award is for an individual who has made an outstanding contribution to New Zealand’s tourism industry over many years.

Stephen Hamilton, a Director of Horwath HTL, a member of Crowe Horwath International, says the Sir Jack Newman Award amounts to the New Zealand tourism industry’s Hall of Fame.

“This is the industry’s most prestigious individual award. Past recipients are individuals whose actions and achievements have helped grow tourism into one of the country’s largest and most successful industries, generating jobs and wealth throughout New Zealand.”

The Awards judges will also select the winner of the inaugural ServiceIQ Visitor Experience Award. This award is being sponsored by ServiceIQ to mark the launch of its new Visitor Experience industry training programme.

“The winning business will deliver a world-class visitor experience and contribute to ServiceIQ’s vision of having a world-class service industry in New Zealand, through qualified people,” says ServiceIQ Chief Executive Dean Minchington.

“ServiceIQ is right behind the tourism industry’s Tourism 2025 growth strategy. Recognition and celebration of excellence is important in achieving that, and we’re proud to be involved with these Awards.

“As the industry training organisation for tourism, we’re also helping the industry towards success with an exciting new on-job visitor experience upskilling programme. We’ll be working with tourism businesses to help them fill any skills gaps their people might have, and give them new skills and knowledge.”

Please find more information here.

ACC levy rates have been set for the 2015/16 year and the average New Zealand vehicle owner will be $135 better off.

Snapshot for small business
The average motor vehicle levy will fall from around $330 to $195. This includes reductions to the licence fee and a drop of 3 cents per litre off the petrol levy.

Risk rating for cars is being introduced, which along with the overall reduction of motor vehicle levies means that owners of petrol-driven cars in the safest group will see the ACC component of their annual vehicle licence fee fall by 66%.

The average levy paid by employers and self-employed people is also falling, from 95 cents to 90 cents per $100 of liable earnings, meaning a lower ACC bill at year end.

The Work and Earners Account levy regulations will come into effect from 1 April 2015 and the Motor Vehicle Account changes from 1 July 2015. Levy rates are reviewed and set each year.

Please find more information here

Thinking of rewarding a star player on your team with a bonus? Working out how much PAYE to deduct from bonuses or lump sums can be tricky but it’s all about choosing the right PAYE rate.

Bonus and lump sum payments can be things like annual or special bonuses, cashed-in annual leave, back-pay and retirementor redundancy payments. Overtime or any regular payments aren't considered lump sum payments.

How to work out the PAYE for lump sums
Follow these steps to work out the PAYE rate to use for a lump sum payment:

1. Work out what your employee has earned (before PAYE) over the past four weeks.
   
2. Multiply this figure by 13.
   
3. Add the lump sum payment to the figure in step two.
   
4. Use the table below to work out what income bracket your employee is in.
   
5. Deduct PAYE from the lump sum payment at the rate shown in the right-hand column for that income bracket.
   

Please find more information here

AuSAE member and former Melbourne Chapter Committee Member, John Clohessy passed away on Saturday the 27 September after a three year battle with cancer, a fight fought well and unknown to many. John had been a long term member of AuSAE was a great contributor the Association and to the sector.

John was passionate about his vision for the betterment of cleaning and property services industry, and will be remembered through his companies Changing Directions, Better Managed Contracts and CiMAS technologies. He was dedicated to the time he gave to the Building Service Contractors Association of Australia (BSCAA) for more than 10 years, as well as four years as the Victorian association’s executive director. John is survived by dear friend Pat in Melbourne, his children and grandchildren in Perth.

All registered charities should review their governing rules following the release of a Draft Special Conditions Ruling on– Income Tax by the Australian Tax Office, according to law firm, Makinson d'Apice Lawyers.

In August the ATO released draft ruling TR 2014/D5 regarding the proposed application of special conditions inserted by the Tax Laws Amendment (2013 Measures No. 2) Act 2013 requiring that:

• A charity must comply with all the substantive requirements in its governing rules (Governing Rules Condition); and
• A charity must apply its income and assets solely for the purpose for which the entity is established (Income and Assets Condition).
  

According to law partner Bill d'Apice the ruling is important for a number of reasons.

“It clarifies the special conditions and how they will be applied (and can be adhered to) with more certaintyand as the ruling is retrospective, any disentitlement to an income tax exemption may be retrospective,” d’Apice said.

“While an entity is in breach of either or both of the special conditions, its ordinary and statutory income will not be exempt from income tax.”

He said it clarifies what will happen in the event of breach of the special conditions and simultaneous failure to comply with the ACNC governance standards, and which authority will act depending on the circumstances.

The ruling applies to a number of income tax exempt entities (but not all) which are listed at Section 50 of the Income Tax Assessment Act 1997 (ITAA).

These entities include:

• registered charities;
• scientific institutions;
• public educational institutions;
• funds established to enable scientific research;
• societies, associations or clubs established for the encouragement of science;
• societies associations or clubs established for community service purposes;
• employee associations or employer associations;
• trade unions;
• public hospitals;
• hospitals carried on by a society or association;
• societies, associations or clubs established for the encouragement of animal racing, art, a game or sport, literature or music; and
• societies, associations or clubs established for musical purposes.
  

The substantive requirements in a charity’s governing rules include the rights and duties of the organisation such as those:

• that give effect to the object or purpose of the entity;
• relating to the Not for Profit status of the entity;
• relating to the winding-up of the entity; and
• that require financial records to be kept.’
  

“All registered charities should review their governing rules and identify the substantive requirements of their governing rules,” d’Apice said.

“If a breach or misapplication is identified the charity should immediately take steps to rectify the situation and a notification to the Commissioner of Taxation may be required.”

- Sourced from: http://www.probonoaustralia.com.au/news/2014/09/charities-should-review-governing-rules-following-tax-ruling