Public Ancillary Funds (PAF) – Annual Fund Returns

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Public Ancillary Funds (PAFs) are a category of Deductible Gift Recipient (DGR).

The PAF Guidelines 2011 (Guidelines) came into effect on 1 January 2012. If you operated an endorsed PAF at the time the Guidelines came into effect, you are taken to have agreed to comply with those Guidelines from 1 January 2012. Compliance with the Guidelines is a requirement for the fund to remain endorsed as a DGR.

The Guidelines set out rules for the operation of a PAF, as well as administrative penalties for non-compliance. The Guidelines can be found at:  http://www.comlaw.gov.au/Details/F2011L02758

One of the new requirements for a PAF introduced by the Guidelines is the need to lodge an annual Ancillary Fund Return. The Australian Taxation Office have now released the Ancillary Fund Return for the 2011-2012 financial year, together with the instructions for its completion: www.ato.gov.au/Forms/Ancillary-fund-return-2012/

The ATO have indicated that individual notices will be issued to PAFs advising them of their respective lodgment due date for the annual return, but the lodgment date for most PAFs is likely to be 28 February 2013.

Before lodging the annual return, the trustee of the fund must have:

  • Completed an estimate of the market value of the assets of the fund in accordance with the Guidelines; and
  • Finalized the audit of the fund in accordance with the Guidelines.

If you have a query about PAF annual fund returns, please contact us

We urge all trustees of PAFs to familiarize themselves with the Guidelines and the annual return requirements to ensure compliance. Please contact our Business Development Officers for an appointment with our Not for Profit & Charity lawyers, if you require our assistance.