26 Jun 2012
Not-for-Profit organisations: Understanding the new ACNC - Part 2
Nick Miller and Simon Bowden talk about understanding the new regulator (the ACNC), its power and responsibilities.
Understanding the new regulator (the ACNC), its power and responsibilities - Part 2
Nick Miller, Partner, Clayton Utz
Simon Bowden, Senior Associate, Clayton Utz
So Simon you mentioned that the ATO has been a de facto regulator for these organisations. That's going to change with the establishment of the ACNC. What do you see as the major effect that that will have?
Well the ACNC will have a lot more power than the ATO - a lot broader scope of power than the ATO which is really only concerned with tax issues, but the ACNC will have some broad powers to investigate organisations. It will decide whether it can register them or to revoke the registration of the organisations. It will be given, according to the exposure draft of the legislation that we have seen, powers to give directions to organisations if it's not satisfied with how they're being run and that, at the moment, the scope of that power seems fairly broad. There are also a number of powers to remove directors or trustees that currently no regulator has power over. So there are going to be a number of changes for organisations to get used to, another body having a say over how they're run. In a sense a lot of them are a bit uncertain, so organisations just kind of need to be aware of them at this stage and monitor the space and talk to us if they need to.
If you have any questions please contact Simon Bowden on email@example.com or David Landy on firstname.lastname@example.org.