EXPOSURE -DRAFT

2010-2011-2012

The Parliament of the
Commonwealth of Australia

HOUSE OF REPRESENTATIVES

EXPOSURE DRAFT

Australian Charities and Not-for-profits
Commission (Consequential and
Transitional) Bill 2012

No. , 2012

(Treasury)

A Bill for an Act to deal with consequential and
transitional matters in connection with the
Australian Charities and Not-for-profits Commission
Act 2012, and for related purposes

EXPOSURE -DRAFT

i Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill
2012 No. , 2012
Contents
1 Short title ………………………………………………………………………………. 1
2 Commencement ……………………………………………………………………… 1
3 Schedule(s) ……………………………………………………………………………. 2
Schedule 1—Application and transitional provisions 3
Part 1—Dictionary 3
Part 2—Registration 4
Part 3—The Register 7
Part 4—Reporting 8
Part 5—ACNC annual report 10
Part 6—Advisory Board 11
Part 7—Protected information 12
Schedule 2—Consequential amendments 13

EXPOSURE -DRAFT

Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012
No. , 2012 1
A Bill for an Act to deal with consequential and 1
transitional matters in connection with the 2
Australian Charities and Not-for-profits Commission 3
Act 2012, and for related purposes 4
The Parliament of Australia enacts: 5
1 Short title 6
This Act may be cited as the Australian Charities and 7
Not-for-profits Commission (Consequential and Transitional) Act 8
2012. 9
2 Commencement 10
(1) Each provision of this Act specified in column 1 of the table 11
commences, or is taken to have commenced, in accordance with 12

EXPOSURE -DRAFT

2 Australian Charities and Not-for-profits Commission (Consequential and Transitional)
Bill 2012 No. , 2012
column 2 of the table. Any other statement in column 2 has effect 1
according to its terms. 2
3
Commencement information
Column 1 Column 2 Column 3
Provision(s) Commencement Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table The day this Act receives the Royal Assent.
2. Schedules 1
and 2 At the same time as the Australian Charities
and Not-for-profits Commission Act 2012
commences.
Note: This table relates only to the provisions of this Act as originally 4 enacted. It will not be amended to deal with any later amendments of 5 this Act. 6
(2) Any information in column 3 of the table is not part of this Act. 7
Information may be inserted in this column, or information in it 8
may be edited, in any published version of this Act. 9
3 Schedule(s) 10
Each Act that is specified in a Schedule to this Act is amended or 11
repealed as set out in the applicable items in the Schedule 12
concerned, and any other item in a Schedule to this Act has effect 13
according to its terms. 14
15

EXPOSURE -DRAFT
Application and transitional provisions Schedule 1
Dictionary Part 1

Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012
No. , 2012 3
Schedule 1—Application and transitional 1
provisions 2
Part 1—Dictionary 3
1 Dictionary 4
In this Schedule: 5
ACNC Act means the Australian Charities and Not-for-profits 6
Commission Act 2012. 7
commencement day means the day on which this Schedule commences. 8
9

EXPOSURE -DRAFT
Schedule 1 Application and transitional provisions
Part 2 Registration

4 Australian Charities and Not-for-profits Commission (Consequential and Transitional)
Bill 2012 No. , 2012
Part 2—Registration 1
2 Charities 2
(1) This item applies to an entity: 3
(a) that, on the day before the commencement day, is endorsed 4
under Subdivision 50-B of the Income Tax Assessment Act 5
1997 as exempt from income tax because the entity is 6
covered by item 1.1, 1.5, 1.5A or 1.5B of the table in 7
section 50-5 of that Act; and 8
(b) to which item 3 or 4 of this Schedule does not apply. 9
(2) The Commissioner is treated as having registered the entity on the 10
commencement day under Division 30 of the ACNC Act as the type of 11
entity mentioned in column 1 of item 1 of the table in subsection 12
25-5(5) of that Act (charity). 13
3 Health promotion charities 14
(1) This item applies to an entity that, on the day before the commencement 15
day, is: 16
(a) endorsed under Subdivision 50-B of the Income Tax 17
Assessment Act 1997 as exempt from income tax because the 18
entity is covered by item 1.1 of the table in section 50-5 of 19
that Act (charitable institution); and 20
(b) endorsed under Subdivision 30-BA of that Act as: 21
(i) a deductible gift recipient because the entity is a fund, 22
authority or institution covered by item 1.1.6 of the 23
table in subsection 30-20(1) of that Act (charitable 24
institution whose principal activity is to promote the 25
prevention or the control of diseases in human beings); 26
or 27
(ii) a deductible gift recipient for the operation of such a 28
fund, authority or institution. 29
(2) This item also applies to an entity that, on the day before the 30
commencement day, is endorsed under section 123D of the Fringe 31
Benefits Tax Assessment Act 1986 as a health promotion charity. 32
(3) The Commissioner is treated as having registered the entity on the 33
commencement day under Division 30 of the ACNC Act as: 34

EXPOSURE -DRAFT
Application and transitional provisions Schedule 1
Registration Part 2

Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012
No. , 2012 5
(a) the type of entity mentioned in column 1 of item 1 of the 1
table in subsection 25-5(5) of that Act (charity); and 2
(b) the subtype of entity mentioned in column 2 of item 5 of that 3
table (institution whose principal activity is to promote the 4
prevention or the control of diseases in human beings). 5
4 Public benevolent institutions 6
(1) This item applies to an entity that, on the day before the commencement 7
day, is: 8
(a) endorsed under Subdivision 50-B of the Income Tax 9
Assessment Act 1997 as exempt from income tax because the 10
entity is covered by item 1.1 of the table in section 50-5 of 11
that Act (charitable institution); and 12
(b) endorsed under Subdivision 30-BA of that Act as: 13
(i) a deductible gift recipient because the entity is a fund, 14
authority or institution covered by item 4.1.1 of the 15
table in subsection 30-45(1) of that Act (public 16
benevolent institution); or 17
(ii) a deductible gift recipient for the operation of such a 18
fund, authority or institution. 19
(2) This item also applies to an entity that, on the day before the 20
commencement day, is endorsed under section 123C of the Fringe 21
Benefits Tax Assessment Act 1986: 22
(a) as a public benevolent institution; or 23
(b) for the operation of a public benevolent institution. 24
(3) The Commissioner is treated as having registered the entity on the 25
commencement day under Division 30 of the ACNC Act as: 26
(a) the type of entity mentioned in column 1 of item 1 of the 27
table in subsection 25-5(5) of that Act (charity); and 28
(b) the subtype of entity mentioned in column 2 of item 6 of that 29
table (public benevolent institution). 30
5 Opt-out 31
(1) This item applies to an entity that, during the period of 6 months 32
starting on the commencement day, notifies the Commissioner of the 33
ACNC, in the approved form, that the entity does not want this Part to 34
apply to the entity. 35

EXPOSURE -DRAFT
Schedule 1 Application and transitional provisions
Part 2 Registration

6 Australian Charities and Not-for-profits Commission (Consequential and Transitional)
Bill 2012 No. , 2012
(2) Items 2, 3 and 4 do not apply, and are taken never to have applied, to 1
the entity. 2
(3) The Commissioner of Taxation is treated as having revoked, on the day 3
before the commencement day, the entity’s endorsements mentioned in 4
paragraphs 426-5(a), (b), (c), (d), (e), (f), (g) and (h) in Schedule 1 to 5
the Taxation Administration Act 1953 (whichever are applicable). 6
6 Religious institutions 7
(1) This item applies to an entity: 8
(a) that notifies the Commissioner of the ACNC that, on the day 9
before the commencement day, the entity was exempt from 10
income tax because the entity was covered by item 1.2 of the 11
table in section 50-5 of the Income Tax Assessment Act 1997; 12
and 13
(b) to which item 2, 3 or 4 of this Schedule does not apply. 14
(2) The Commissioner is treated as having registered the entity on the 15
commencement day under Division 30 of the ACNC Act as: 16
(a) the type of entity mentioned in column 1 of item 1 of the 17
table in subsection 25-5(5) of that Act (charity); and 18
(b) the subtype of entity mentioned in column 2 of item 3 of that 19
table (entity with a purpose that is the advancement of 20
religion). 21
(3) A notice given under paragraph (1)(a) must be: 22
(a) in the approved form; and 23
(b) given to the Commissioner during the period of 12 months 24
starting on the commencement day. 25
Note: Subdivision 175-B of the ACNC Act imposes an administrative penalty if the notice 26 contains a statement that is false or misleading in a material particular. 27
28

EXPOSURE -DRAFT
Application and transitional provisions Schedule 1
The Register Part 3

Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012
No. , 2012 7
Part 3—The Register 1
7 The Register 2
During the period of 15 months starting on the commencement day, 3
Division 40 of the ACNC Act does not apply to information or 4
documents that the Commissioner does not possess. 5
6

EXPOSURE -DRAFT
Schedule 1 Application and transitional provisions
Part 4 Reporting

8 Australian Charities and Not-for-profits Commission (Consequential and Transitional)
Bill 2012 No. , 2012
Part 4—Reporting 1
8 Annual information statements 2
(1) Subdivision 60-B of the ACNC Act applies to the 2012-13 financial 3
year and later financial years. 4
Substituted accounting periods 5
(2) If, before 30 June 2013, an entity adopts under Subdivision 60-F of the 6
ACNC Act an accounting period other than the financial year, 7
Subdivision 60-B of that Act applies, in relation to the 2012-13 8
financial year, as if: 9
(a) the reference in subsection 60-5(1) to the financial year were 10
a reference to the accounting period that starts during the 11
financial year; and 12
(b) the reference in subsection 60-5(2) to 31 December in the 13
following financial year were a reference to the last day of 14
the 6 month period after the end of the accounting period. 15
9 Financial reporting 16
General start time 17
(1) Subdivision 60-C of the ACNC Act applies to the 2013-14 financial 18
year and later financial years. 19
Note: If, on or before 30 June 2013, an entity adopts under Subdivision 60-F of the ACNC Act 20 an accounting period that ends on a day (the substituted end day) other than 30 June, 21 the effect of this subitem and Subdivision 60-F is that Subdivision 60-C of the ACNC 22 Act will not apply to the entity before the day after the substituted end day during the 23 2013-14 financial year. See also item 10. 24
Voluntary reporting 25
(2) A registered entity may give to the Commissioner a financial report for 26
the 2012-13 financial year. The ACNC Act (other than 27
Subdivisions 60-C and 175-C) applies to the report as if the entity had 28
been required to give the report to the Commissioner under 29
Subdivision 60-C. 30
(3) To avoid doubt, the requirements of Subdivision 60-C (including those 31
set out in regulations made for the purposes of subsection 60-15(1)) do 32
not apply to a financial report given under subitem (2) of this item. 33

EXPOSURE -DRAFT
Application and transitional provisions Schedule 1
Reporting Part 4

Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012
No. , 2012 9
Voluntary reporting—substituted accounting periods 1
(4) If, before 30 June 2013, the registered entity adopts under 2
Subdivision 60-F of the ACNC Act an accounting period other than the 3
financial year, subitem (2) of this item applies as if the reference in the 4
subitem to the 2012-13 financial year were a reference to the accounting 5
period that starts during the financial year. 6
10 Substituted accounting periods 7
(1) The Commissioner is treated as having allowed an entity under 8
section 60-85 of the ACNC Act on the commencement day to adopt an 9
accounting period that ends on a particular day (the substituted end 10
day) (other than 30 June) each year if: 11
(a) the entity is a registered entity on the commencement day 12
because of Part 2 of this Schedule; and 13
(b) the entity notifies the Commissioner that, under an Australian 14
law, the entity is or was required to prepare a financial report 15
for a period of 12 months that ended on the substituted end 16
day during the 2012-13 financial year. 17
(2) A notice given under paragraph (1)(b) must be: 18
(a) in the approved form; and 19
(b) given to the Commissioner during the period of 6 months 20
starting on the commencement day. 21
Note: Subdivision 175-B of the ACNC Act imposes an administrative penalty if the notice 22 contains a statement that is false or misleading in a material particular. 23
24

EXPOSURE -DRAFT
Schedule 1 Application and transitional provisions
Part 5 ACNC annual report

10 Australian Charities and Not-for-profits Commission (Consequential and Transitional)
Bill 2012 No. , 2012
Part 5—ACNC annual report 1
11 Annual report 2
(1) Section 130-5 of the ACNC Act applies to the 2012-13 financial year 3
and later financial years. 4
(2) However, for the 2012-13 financial year, treat the references in that 5
section to the financial year as being references to the period that: 6
(a) starts on the commencement day; and 7
(b) ends on 30 June 2013. 8
9

EXPOSURE -DRAFT
Application and transitional provisions Schedule 1
Advisory Board Part 6

Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012
No. , 2012 11
Part 6—Advisory Board 1
12 Meetings of the Advisory Board 2
(1) Section 145-5 of the ACNC Act applies to the 2013-14 financial year 3
and later financial years. 4
Meetings before 2013-14 financial year 5
(2) The Chair may convene meetings of the Advisory Board during the 6
period that: 7
(a) starts on the commencement day; and 8
(b) ends on 30 June 2013. 9
(3) The ACNC Act applies to a meeting convened under subitem (2) of this 10
item in the same way as that Act applies to meetings convened under 11
section 145-5 of that Act. 12
13

EXPOSURE -DRAFT
Schedule 1 Application and transitional provisions
Part 7 Protected information

12 Australian Charities and Not-for-profits Commission (Consequential and Transitional)
Bill 2012 No. , 2012
Part 7—Protected information 1
13 Protected taxation information 2
Section 355-25 in Schedule 1 to the Taxation Administration Act 1953 3
(disclosure of protected information by taxation officers) does not apply 4
to an entity that makes a record of information or discloses information 5
if: 6
(a) the entity is a taxation officer; and 7
(b) the record is made for or the disclosure is to the 8
Commissioner of the ACNC for the purpose of the 9
Commissioner performing any of his or her functions, or 10
exercising any of his or her powers, under Division 40 of the 11
ACNC Act (Australian Charities and Not-for-profits 12
Register); and 13
(c) the information is mentioned in subsection 40-5(1) of that 14
Act (information to be included in the Register); and 15
(d) the record or disclosure is made during the period of 6 16
months starting on the commencement day. 17
Note: Information obtained by an ACNC officer for the purposes of the ACNC Act may be 18 protected ACNC information under Part 7-1 of the ACNC Act. 19
20

EXPOSURE -DRAFT
Consequential amendments Schedule 2

Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012
No. , 2012 13
Schedule 2—Consequential amendments 1
2
To be drafted 3