Tasmania Aligns Compliance Reporting with ACNC Requirements

Following the announcement of the retention of the ACNC in March, the Tasmanian Government has moved to pass the “Associations Incorporation Amendment Bill 2016”. This will see Tasmanian legislation aligned with the ACNC audit and financial reporting requirements.

It is expected that this move will bring a huge sense of relief to over 3000 Tasmanian community organisations who have suffered under the onerous and much duplicated reporting regimes.

Slashing the Red Tape

The new changes will see an increase in the audit reporting threshold from the exiting level  of  $40 000 per annum to a new more realistic figure of $250 000. It is anticipated that this move will see many organisations drastically slash their audit costs. Additional changes implemented, include the exemption for ACNC registered incorporated associations from having to provide duplicate financial reports to both the ACNC and the Commissioner for Corporate Affairs.

In a recent press statement, Tasmanian Minister for Building and Construction, Adam Brooks, spoke of his government’s “commitment to reduce red tape and help reduce business costs in Tasmania, creating jobs and ultimately benefiting the wider community”.

A Mountain of Support Needed

This change in policy looks only to be good news for the wider NFP/Charity community in Australia as the effects of the retention of the ACNC begin to take effect.

The ability to work closely with Government departments such as the ATO is but one of the benefits that come from having a high level organisation who can bridge the gap between the grassroots of service provision and the complex maze of intra-government departments.

For too long the industry has been hamstrung with overly complicated and increasingly complex reporting requirements. The new reduction in compliance will have huge benefits for organisations striving to transition to the new funding model under the NDIS. The support and influence of peak bodies such as the ACNC is vitally important if the industry is to maintain focus on the most important part of their business…their clients.

Riding the Wave

It is hoped the Tasmanian success can be replicated around the country. A cohesive approach needs to be taken if the momentum is to continue. Real change at the legislative level has historically taken a long time with the benefits of achieving these changes often negated due to the long time frames or opportunities missed. With a combined approach to developing and strengthening the industry and using channels such as peak body representation, the sector can go a long way towards achieving a seamless level of integration between industry and the regulators.

Interested in hearing more about better regulation and not more regulation? Visit the Government’s Cutting Red Tape website.