• Details
  • Industry: Aged care, Government, Social Policy, Healthcare, Not-for-profit
    Type: Regulatory update
    Date: 25/01/2012

    Reform in the not-for-profit sector: governance 

    The pace of proposed changes impacting the not-for-profit (NFP) sector gained momentum during 2011, especially towards the end of the year. On 8 December 2011 the Australian government issued a consultation paper 'Review of not-for-profit governance arrangements' and a factsheet on proposed changes to governance arrangements applying to NFP entities. It is clear that the level of reform intended will have a key impact on the sector as a whole.
    Reform in the not-for-profit sector: governance cover
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    Submissions responding to the consultation paper were due by 27 January 2012.

     

    KPMG's summary paper outlines key points, background, analysis, and KPMG comment on what these changes may mean for NFP providers.

     

    Key insights

    • Government’s aim to reduce red-tape in regulation requirements for NFP organisations is commendable but is sometimes in conflict with increased accountabilities for a number of NFPs.
    • Co-operation between states and territories requires attention under the same timeframe as current draft legislation in order to achieve long term objectives in reducing onerous reporting requirements.
    • Clarity is required to avoid duplication between the Corporations Act and the new ACNC bill during transition.
    • It will be important to ensure that requirements set by both the AASB and ACNC are aligned in the given timeframe for implementation of the bill.
    • Consideration should be given across the breadth of the NFP sector in terms of public reporting for NFPs to achieve an appropriate level of transparency depending on the organisation.
     

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    Not-for-Profit

    KPMG can help Australia's not-for-profit organisations respond effectively to challenging and complex issues facing the sector.