ACNC extends regulatory relief for ACNC registered charities until 31 December 2020

The ACNC extends regulatory relief (previously announced)  for charities until the end of 2020. See: https://www.acnc.gov.au/raise-concern/regulating-charities/how-we-ensure-charities-meet-their-obligations/acnc-compliance

This relief includes:

  • Governance Standard 5 – A moratorium of ACNC regulatory action for insolvent trading and the removal of the previous condition attaching to this relief of informing members.

The conditions attaching to this ACNC relief (emphasis added):

The debt is incurred:

  • in the ordinary course of business
  • during the relevant period
  • before the appointment of an administrator or liquidator.

The charity must ensure that its Responsible People are aware of the issue and have an achievable aim to return to viability when the crisis has passed. The charity must continue to follow relevant federal and state legislation.

Charity governors should of course also understand that this regulator moratorium does not protect them from claims by creditors for example and therefore this relief should only be cautiously relied upon following specific advice.

  • External Conduct Standard 2 – A temporary moratorium has been provided on the requirement that charity obtain and keep records for its operations outside Australia but only to the extent the charity is unable to obtain reporting from its overseas operations or partners, reasons are recorded and reporting be brought back into compliance and obtained (including for the period not obtained) as soon as practicable.

The published “relief” in respect of chartable purpose (Governance Standard 1) is “danger Will Robinson” territory, and we strongly suggest significant caution in seeking to rely on this relief without specific advice.

If you require assistance to better understand the ACNC extended regulatory relief contact our Client Engagement Team or click the link to learn more about our Not-For-Profit Services 

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