ACNC Advisory Board respond to Commonwealth’s decisions arising from review of the ACNC Act

Endorsing Charity Minister Senator the Hon Zed Seselja’s response to the ACNC legislation review, Chair of the ACNC Advisory Board Tony Stuart said the ACNC would no longer have to conduct its investigations in silence, but can instead speak when in the public interest.

According to a statement sent to Third Sector, allowing the Australian Charities and Not-for-Profit Commission (ACNC) to disclose investigations into serious charity wrong doings, and strengthening power to remove child sex offenders from charity boards will improve public trust and confidence in charities.

Stuart said “The Charities Commissioner cannot tell the public when it is investigating a significant charity breach. While operational detail is yet to be determined, Government will empower the ACNC to consider public interest by publishing serious investigation details.

“The ACNC Advisory Board also recommended prohibition of convicted child sex offenders from serving on charity boards. Protecting children is central to the charity sector’s purpose. The Government will strengthen ACNC powers to remove convicted Directors.”

The ACNC Advisory Board, who worked closely in advising the Government on its response to the review of the ACNC Act, said the Government’s response acted on the major recommendations of the Advisory Board.

The ACNC Advisory Board particularly endorsed the Government’s decision to:

· Keep all current objects of the ACNC Act

· Retain the ability of the Commissioner to remove a responsible person from a charity

· Affirm the ACNC Advisory Board’s ability to provide advice to the Charities Minister

· Consult further on the “turn off” provisions of the Corporations Act

· Change reporting thresholds to reduce obligations on small revenue charities

· Have charity directors disclose related party transactions

· Require aggregated remuneration of charity executives to be published annually

· Expand the ACNC’s role to collect information on any unlawful activity of charity directors and executives

ACNC Advisory Board Deputy Chair Dr Martin Laverty said proposals for consumer law to apply to charity fundraising will not proceed, but more importantly the Commonwealth has left the door open to States and Territories signing up to a single national charity scheme.

“When the ACNC was established, I and countless others argued there needed to be harmonisation of State and Territory fundraising laws. In time, we need a single national approach to how charities are regulated,” he said. “The Government has noted potential for a national scheme to occur, if States and Territories agree. It’s now time for State and Territory Governments to act.”

Dr Laverty concluded: “overall, the response to the review of the ACNC Act, and in particular the decision to retain the Act’s three objects, will assure the charity sector, charity donors, and charity beneficiaries alike of improved public trust and confidence.”

Pearl Dy

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Pearl Dy is a community manager and journalist. She is passionate about business and development particularly involving not-for-profits, charity and social entrepreneurship.

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