Cutting Red Tape for Incorporated Associations
A recent change means that many registered charities, that are Incorporated Associations in Victoria, have had their reporting requirements reduced.
Incorporated Associations with a financial year that ends on or after 30 June 2018 need now only to report to the ACNC using the Annual Information Statement. They are now no longer required to pay an annual fee to Consumer Affairs of Victoria.
However, these arrangements do not apply to:
Incorporated Associations that form part of a reporting group and
Charities that have been approved by the ACNC to withhold financial details or financial reports from the ACNC Charity Register.
Benefits provided to Religious Practitioners
The ATO recently issued draft taxation ruling (TR 2018/D2) which explains when certain benefits provided by registered religious institutions to religious practitioners will be exempt from FBT. (Note: This draft ruling is a rewrite of taxation ruling TR 92/17, which was withdrawn on 11 July 2018.)
The updated ruling essentially includes some updates to reflect:
A requirement for the provider of benefits to maintain a registration with the ACNC with a charity subtype of “advancing religion” and
Changes in the nature of contemporary religious practice which have taken place since the previous ruling was originally issued.
The ruling is still in draft form and we will be making a submission to the ATO in relation to it. We will provide a further update on the implications of the ruling once it has been finalised.
31 December Year End – AIS overdue
Charities that operate on a calendar year from 1 January to 31 December 2017 should have completed their 2017 Annual Information Statement (AIS) by 30 June 2018. Please ensure that your AIS is lodged as soon as possible if it has not been done.
ASIC Supervisory Recovery Levy exemption
Charities have secured an exemption from paying the new ASIC supervisory recovery levy that is payable by all companies regulated under the Corporations Act 2001. This exemption applies to all ACNC registered charities. This means that Companies Limited by Guarantee that are registered charities are not required to pay an annual ASIC fee of $321.