Many nonprofit organisations across the country may be interested in how the new Australian Charities and Not-for-profits Commission (ACNC) will impact them.
While there are a few changes coming that could take some time for adjustment, assistant treasurer and minister for deregulation David Bradbury reassures the sector that the transition to ACNC will be staged appropriately.
The new commission will officially begin operations on October 1 2012, but certain aspects will be slowly introduced over the next two years.
These include the governance standards and financial reporting framework, which will start on July 1 2013. For some medium and large registered entities, the first financial reports will not be expected until after 1 July 2014.
This means that from October 1, the ACNC will only register charities.
Mr Bradbury emphasises that the gradual introduction of the later stages is intended to facilitate transition, as opposed to slow it down or hinder those in the sector.
"The Gillard government is committed to progressing these important reforms and this staged approach will help the sector transition to the new arrangements and provide additional time for consultation," he explained on May 17.
It is intended that the House of Representatives Standing Committee on Economics will review the draft ACNC legislation over the winter parliamentary break, according to a governmental statement.
In the meantime, Mr Bradbury said that he would be continuing consultation with the public and doing what he could to facilitate the change.
"As the governance standards and the financial reporting framework are finalised, the ACNC will work with the sector and provide guidance and information to help charities transition to the new regulatory framework - providing plenty of time for the sector to develop an understanding of the changes before they start to apply," he asserted.
He then went on to acknowledge that consultation was "critical to the shaping of these reforms".
The interim commissioner and head of the ACNC implementation taskforce, Susan Pascoe, supports the staged introduction.
In her Commissioner's Column on May 22, Ms Pascoe recognised the need for a gradual rollout.
"Allowing adequate time for the NFP sector to make the transition to the proposed regulatory system and providing ongoing and appropriate guidance and education is vital," she wrote.
She also said that a staged introduction will allow everyone to be better prepared.
"Change is challenging and the better we prepare people for change, the more education materials and accessible information we provide and the more communication channels we have in place the more people will be supported," she explained.
