Office for the Community Sector (OCS) Office for the Community Sector (OCS) Presentation to the FMPPCP Member Agency Forum Jen McKinley Office for the Community Sector September 2011 John Unkovich Principal Legal Policy Adviser Consumer Affairs Victoria 1
The Not- -for for- -Profit (NFP) sector in Victoria Profit (NFP) sector in Victoria The Not • More than 120,000 NFP sector organisations operate in Victoria, including sports, arts, welfare groups, community service providers and more. • Over 37,000 are incorporated associations • In Victoria the government invests $2.2billion in this sector • The NFP industry value was one and a half times that of the agricultural sector (2006-2007) • 80% of Australia’s philanthropic trusts are in Victoria • More than 40% of Victorians volunteer in NFP organisations 2
Focus of the Office for the Community Focus of the Office for the Community Sector (OCS) Sector (OCS) • Reducing the burden of red tape • Building sector capability • Diversifying the resource base 3
with engage the NFP sector How does the OCS engage with engage the NFP sector How does the OCS engage Reference Groups Reference Groups Development of Surveys Development of Surveys resources resources OCS OCS Summit Summit Working Groups Working Groups Grants Grants Pilots/Trials Pilots/Trials Building on what’s Building on what’s Communications Communications been done and showcasing been done and showcasing Tools Tools the good practice of the the good practice of the sector sector 4
The OCS & reducing the burden of red tape The OCS & reducing the burden of red tape • Standard Chart of Accounts (SCOA) • Common Funding Agreement (CFA) • Better Information for NFP organisations on Regulatory Requirements (BIRR) Portal • Associations Incorporation Act 1981 (AIA) 5
National NFP Reforms - - Setting the Scene Setting the Scene National NFP Reforms 2001 : Inquiry into the definition of charities and related • organisations August 2008 : Inquiry into the Disclosure Regimes for Charities • and Not-for-Profit organisations 2009 : Productivity Commission – Draft Report of the Study into • the Contribution of the Not-for-Profit Sector - National Regulator proposed - Victorian Government response to the Draft Report co- ordinated by the OCS January 2010 : Productivity Commission - Final Report on the • Contribution of the Not-for-Profit Sector 6
National NFP Reforms - - Setting the Scene Setting the Scene National NFP Reforms January 2011 : Scoping study for a national not-for-profit • regulator – Consultation paper released by Treasury - OCS prepared the Victorian Government response Early 2011 : Commonwealth Government established: • - A national Office for the Not-for-Profit Sector - Not-for-Profit Sector Reform Council May 2011 : Commonwealth Budget announcements: • - Australian Charities and Not-for-Profits Commission (ACNC) - to commence operation from 1 July 2012 - Negotiations with states and territories on national regulation and a new National Regulator for the sector 7
Australian Charities and Not- -for for- -Profits Profits Australian Charities and Not Commission (ACNC) Commission (ACNC) • Allocated $54 million over four years with an initial focus on reducing the regulatory burden imposed by the Commonwealth: - Determining Charitable status – public benevolent institution, and other NFP status for all Commonwealth purposes – a definition of ‘charity’ applicable across all Commonwealth agencies from 1 July 3013 - Providing education and support to the NFP sector - Implementing a ‘report-once use-often’ general reporting for charities - Establishing a public information portal by July 2013 8
Australian Charities and Not- -for for- -Profits Profits Australian Charities and Not Commission Commission • Ms Susan Pascoe, formerly a Commissioner with the Victorian State Services Authority has been appointed as Chair of the Implementation taskforce for the ACNC • Mr Robert Fitzgerald AM (Chair of the Productivity Commission Study into the contribution of the NFP Sector) has been appointed Chair of the Advisory Board established to assist the ACNC • The Commonwealth has committed to consulting with the States and Territories to arrive at a definition of charitable status. • The ACNC will report directly to Parliament via the Assistant Treasurer 9
Australian Charities and Not- -for for- -Profits Profits Australian Charities and Not Commission (ACNC) Commission (ACNC) Taskforce is working with ATO to establish ACNC on 1 July • 2012 From that date the Commission will be responsible for the registration of Australian Charities for all Commonwealth purposes. The four main priority areas that the taskforce is working: • – Developing a general reporting framework (financial & governance). Taskforce is working across levels of Government - Commonwealth and States & Territories – Setting up an Information portal from 1 July 2012 that will provide both a vehicle for online reporting and a searchable database and ‘one stop shop’ gateway for NFP organisations – Communication – Taking a phased approach to engaging with the NFP sector and other key players over the coming year – online information briefings, roundtables on key topics and formal consultation processes – Education – Designing an approach to information, education and advice 10
National Regulation National Regulation • Negotiation with the States and Territories on national regulation for the charitable (NFP) sector and a new National Regulator for the sector • Commonwealth will focus on getting burden reduction at the Commonwealth level in-hand initially • Use of Council of Australian Governments (COAG) processes 11
Commonwealth Office for the Not- -for for- - Commonwealth Office for the Not Profit Sector Profit Sector • Sits within Prime Minister and Cabinet and reports to the Minister for Social Inclusion: - Co-ordination role across Government for NFP Sector reform - Reducing red tape for Commonwealth Government funded NFPs - Leads on Volunteering, Social Inclusion and the National Compact and non-financial reporting • Supports the Not-for-Profit Sector Reform Council which has a number of working groups including: - National Compact Working Group - Reducing red-tape Working Group - Harmonisation Working Group - Tax reform Working Group 12
Other projects Other projects • Grants Funding template project - being led by the Department of Finance • Measurement of the economic benefit of the NFP Sector being undertaken by the ABS • Early work on Tax concessions, Companies Limited by Guarantee and charities definition – Australian Taxation Office (ATO) 13
Council of Australian Governments (COAG) Council of Australian Governments (COAG) • Commonwealth has proposed that a new NFP Working Group that will report to COAG through the Standing Council for Federal Financial Relations be established • This new NFP Working Group would be responsible for progressing national NFP regulatory reform: - Adoption of a consistent definition of ‘charity and charitable activities - Adoption of standardised general reporting for NFPs - Input to reviews on companies limited by guarantee and governance obligations appropriate for NFPs - Harmonisation – fundraising regulation and working with children 14
Australian Charities and Not- -for for- -Profits Profits Australian Charities and Not Commission (ACNC) Commission (ACNC) The expected benefits for NFPs from the new regulation • approach includes : – Registration by an independent ACNC establishes the bona fides of an NFP (“ a registered charity”) – Opportunity for promotion of NFP activities via ACNC website – Widespread access to information for NFP entities, donors, government and the public – Tiered reporting requirements (proportionate regulatory approach) – Education and support from the ACNC to meet accountability and reporting obligations – Increased public access to information to promote community confidence in the sector – Development of accurate, verifiable and comprehensive information on the sector that can properly inform future policy. – Ultimately, streamlined regulatory requirements through “one stop shop” and “report once, use often” capability on the portal (as state and territories jurisdictions and agencies come on board) 15
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