Does My Charity Have Reporting Obligations to ASIC or the ACNC?

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Table of Contents

• Corporations Act Reporting Provisions ‘Switched Off’
• Reporting Obligations to ASIC
• Are There Any Changes to My Charity That I Must Report to ASIC?
• Reporting Obligations to the ACNC
• Key Obligations for CLG Charities to ASIC and the ACNC
• Key Takeaways

If your organisation is a registered charity, you must keep the relevant regulatory body up to date with the details of your charity and comply with any reporting obligations. However, suppose your charity is a company limited by guarantee. In that case, it can be confusing to know whether you need to contact the Australian Securities and Investments Commission (ASIC), the Australian Charities and Not-for-profits Commission (ACNC) or both. This article will explain the corporate reporting requirements for registered charities that are companies limited by guarantee (CLGs).

Corporations Act Reporting Provisions ‘Switched Off’

If your CLG is a charity registered with the ACNC, your primary reporting obligations will be to the ACNC rather than to ASIC. Under the relevant legislation, specific provisions in the Corporations Act are ‘switched off’ for registered charities. This means that they do not apply to companies registered with the ACNC. These switched-off provisions include several corporate reporting obligations, such as the obligation to inform ASIC of changes to a company’s directors or members.

Let us now explore the reporting requirements for changes to your charity’s details below.

Reporting Obligations to ASIC

If your CLG is a registered charity with the ACNC, you do not have to report annually to ASIC or notify them. This means that you do not need to inform ASIC of a change to your company’s:

• address details (including the registered office address, principal place of business address, or contact address); 
• board members, the appointment or removal of directors and secretaries or changes to the contact details for those people; and
• appointment of an auditor.

Additionally, you will not:

• receive an annual statement each year in respect of your charity, and not need to review its details or pay an annual fee; and
• be subject to most financial reporting and auditing requirements.

However, it is advisable to update your charity’s address or board members’ changes to keep the ASIC register up-to-date, as it is a publicly accessible record. You can do this either through ASIC’s online services or with the help of legal representation. Even if you decide to update ASIC later on, there will not be any late fees for notifying them. 

Are There Any Changes to My Charity That I Must Report to ASIC?

Even though you do not need to update ASIC of changes to many of your CLG’s details, it is essential to remember that there are some occasions where you must report to ASIC. These generally relate to the corporate status of your company rather than its charitable status and include:

• changes to your company’s name;
• the resignation or removal of an auditor;
• the appointment of an external administrator; or
• if your company winds up or applies to be deregistered.

Reporting Obligations to the ACNC

As noted above, your main reporting requirements will be to the ACNC as opposed to ASIC. You will need to notify the ACNC of changes to specific details of your charity, including changes to its:

• name;
• address; 
• responsible people (usually its directors); and
• governing document (constitution).

Provided your charity is a CLG, you should also contact the ACNC if it:

• changes its legal structure;
• merges with another charity;
• winds up; or
• wants to have its charity registration revoked.

Key Obligations for CLG Charities to ASIC and the ACNC

If your charity is a CLG, you can refer to the table below as a quick reference guide for when to update or contact ASIC or the ACNC.

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Key Takeaways

If your CLG is registered as a charity with ACNC, you may find it challenging to understand your reporting and notification obligations to ASIC and the ACNC regarding your organisation’s changes. In general, your main reporting obligations will be to the ACNC. Furthermore, you do not have to report annually to ASIC or notify ASIC of most changes. However, you may wish to notify ASIC of changes to your charity’s details so that the publicly accessible ASIC register is kept up-to-date. Also, remember that you may need to inform ASIC of some changes relating to your company’s corporate status, not its charitable status.

If you have any questions about your charity’s reporting obligations, our experienced charity lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.