Community and Associations Newsletter – August 2018
Now that a new financial year is well underway, we report on some new regulations which will affect not just the sector, but other entities and draw your attention to developments peculiar to the sector, namely:
- Publication of a draft Tax Ruling for the “in Australia test” .
- Call for submissions on the ever vexatious issue of the seven different fundraising regimes around Australia.
- Compulsory operation of the Property Exchange Australia (PEXA) electronic conveyancing platform for certain transactions.
The Carroll & O’Dea Community & Associations Team
Charity Fundraising in the Twenty-First Century: Senate Select Committee Inquiry
The Commonwealth Parliament closed submissions on 6 August 2018. Submissions will be sent to a Select Committee on Charity Fundraising in the Twenty-First Century (“the Committee”).
Compulsory use of the Pexa Platform
From 1 July 2018 in New South Wales any standalone transfers of real estate must be effected through the electronic platform, PEXA. A standalone transfer is a transaction where there is no discharging mortgagee and no incoming mortgagee.
This may be a common transaction for charitable organisations or not for profits who have the benefit of stamp duty exemptions and wish to transfer real estate from one or more entities to a central related holding entity.
The Good News
The Australian Sports Foundation (ASF) has successfully secured registration with the Australian Charities and Not-for profit Commission of a new charitable fund with a deductible gift recipient status.
While this does not mean that sport generally has been recognised as charitable, the charitable purposes of the fund will enable sporting clubs to have access to philanthropic funds in addition to funds which the ASF may have allocated.
The new fund will be used to improve the physical and mental health and fitness of the general population: it is anticipated to have a particularly positive impact in disadvantaged communities and in regional and remote areas by encouraging participation in amateur sport. It is also anticipated that persons suffering a disability will have more access to sporting opportunities