Australian Charities and Not-for-profits Commission Amendment (2021 Measures No. 3) Regulations 2021
The Government is seeking stakeholder views on exposure draft legislation which will implement two reforms to reduce red tape for, and increase transparency of, the charity sector. The reforms arise from the Government’s agreement to recommendations in the Australian Charities and Not-for-profits Commission Legislation Review 2018 (the Review).
The Regulations will give effect to Recommendation 12 and Recommendation 14 of the Review. Recommendation 12 will increase the revenue thresholds defining small, medium and large registered charities. Recommendation 14 will require all registered charities to disclose related party transactions, with small registered charities to make a simplified disclosure involving a brief description of related party transactions.
For consistency with the Government’s response to Recommendation 15 of the Review, the Regulations also provide an exemption for some charities from the requirement to disclose, as part of their related party transactions, aggregate remuneration paid to responsible persons and senior executives. This exemption will apply to medium registered charities, and large charities with only one remunerated key management person. (Senior executives and responsible persons are referred to as key management personnel in accounting terms.) This requirement balances increased transparency with the privacy of individuals.
The draft legislation will be complemented by administrative actions by the Australian Charities and Not-for-profits Commission to implement Recommendation 14 for small charities.
You can submit responses to this consultation up until 08 October 2021. Interested parties are invited to comment on this consultation.
Further information available here.
Retirement Income Covenant – September 2021
The Government is seeking stakeholder views on exposure draft legislation that will introduce a retirement income covenant for superannuation trustees. The retirement income covenant will support retirees to have the confidence to spend their hard-earned savings, while enabling choice and competition in the retirement phase of superannuation.
The draft legislation would codify the obligation for superannuation trustees to have a retirement income strategy that outlines how they plan to assist their members in retirement. The strategy must consider how the trustee will assist their members to balance maximising their retirement income, managing risks, and have some flexible access to savings.
This exposure draft reflects the feedback received following the release of the retirement income covenant position paper earlier this year.
Subject to the passage of legislation, the retirement income covenant will take effect from 1 July 2022.
You can submit responses to this consultation up until 15 October 2021. Interested parties are invited to comment on this consultation.
Further information available here.
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