ATO and ACNC Collaborate on Ancillary Funds
Thursday, 29th September 2016 at 8:08 am
An agreement between the Australian Taxation Office (ATO) and the Australian Charities and Not-for-profits Commission (ACNC) will allow ancillary funds registered as charities to only report their annual return once.
The move has been described by the ACNC as a step towards reducing the administrative burden on charities for around 3,000 charities.
“Ancillary funds were previously required to report their annual return to both the ATO and the ACNC,” ACNC Commissioner Susan Pascoe AM said.
“By collaborating with the ATO, we’re ensuring that ancillary funds only need to report once using the ACNC’s online Annual Information Statement. We will then share the information they collect with the ATO.”
Pascoe said the new streamlined process would reduce double-up reporting and cut down the time involved in administration.
“With a joint focus on strengthening the sector, the two regulators will continue to work closely together to facilitate positive change,” she said.
“Additionally, I am granting an extension of time for ancillary funds to complete their 2016 Annual Information Statement to align with the fund return deadline of 28 February 2017.
“The ACNC is committed to reducing red tape for charities. This is just one of the initiatives we have undertaken to reduce unnecessary obligations on the Australian Not for Profit sector.”
The ATO’s assistant commissioner Martin Jacobs described the reduction in reporting as an excellent outcome.
“Charities provide vital services to the community and our efforts to harmonise reporting requirements with the ACNC make it easier for them to meet their obligations and continue on with their important work,” Jacobs said.
“There are around 300 ancillary funds that are not registered as charities and those organisations must continue reporting to the ATO using the Ancillary Fund Return form available on ato.gov.au.”
The ACNC’s red tape reduction initiatives can be found here.