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5 500 charities lose registration

Close to 5 500 double defaulter charities from across Australia have now lost their registration with the Australian Charities and Not-for-profits Commission (ACNC) for failing to complete their reporting for two consecutive years.

ACNC Commissioner, Susan Pascoe AM, explained that after exhaustive inquiries the ACNC presumed many of these were inactive.

“We believe that many of these charities have not completed their reporting because they are no longer operating,” Ms Pascoe said.

“However, deliberately or otherwise, these charities have not completed their reporting dating back more than two years, and we have a duty to the public to ensure that only charities that meet their obligations maintain charity status.

“By revoking these charities, the public now has access to an accurate and up-to-date register of 54 000 active and transparent Australian charities.”

The clean-up of the Charity Register has resulted in the removal or revocation of close to 9 000 charities since the ACNC was established in December 2012.

Ms Pascoe also advised the public to check the legitimacy of charities before they donate.

“Some organisations call themselves charities but are not registered with the ACNC.

“The public should check before they donate and be wary of donating to charities that the ACNC has revoked but are still operating.

“Charities registered with the ACNC are more transparent about their activities and the public can access a lot of information about them, including their financial information, on the Charity Register.

“Charities registered with the ACNC are also required to meet minimum governance standards.”

Ms Pascoe said charities can regain their charity status by completing their overdue reporting.

“Charities that have had their status revoked for failing to report two years in a row but are still operating will have their application to re-register with the ACNC fast-tracked once they have lodged any overdue reports.

Removing the Hassle of a Shoebox Full of Receipts

Australian taxpayers will be able to claim a $500 standard income tax deduction, without receipts, instead of going to the hassle of using receipts to claim work-related expenses and the cost of managing their tax affairs.

Assistant Treasurer Bill Shorten today released a discussion paper outlining the proposed standard deduction for individual taxpayers, which was announced in the 2010-11 Budget.

“A standard deduction removes the hassle of a shoebox full of receipts for Australian taxpayers. It simplifies income tax returns for individuals and the Australian Taxation Office,” Mr Shorten said.

From 1 July 2012, the $500 deduction, which will rise to $1,000 from 1 July 2013.

“Providing a standard deduction will remove this burden for many taxpayers and increase their tax return. No taxpayers will be disadvantaged. Taxpayers with expenses above the standard deduction will be able to continue to claim those expenses when lodging their tax return under the existing rules.”

The government thinks that the standard deduction is expected to be a chosen by approximately 4.6 million taxpayers in 2012?13,  and by 6.4 million taxpayers in 2013-14.

Of those that benefit, around 66 per cent would have a taxable income of less than $50,000 in 2012?13 and around 60 per cent would have a taxable income of less than $50,000 in 2013-14.

“A standard deduction makes it easier for working families to get the best possible tax return and continues the Gillard Government’s ongoing efforts to simplify the tax system. I encourage interested taxpayers and others to make submissions to the discussion paper,” Mr Shorten said.

The Government values consultation and invites interested parties to view the discussion paper and provide comments. Copies of the discussion paper can be obtained from the Treasury website (www.treasury.gov.au). The closing date for submissions is 8 April 2011.

The original $300 exemption from needing receipts was introduced way back when Paul Keating was treasurer and $300 was  a high level of deductions. These days most union members pay close to $500 in that one expense alone.

Director penalty notices – part 2

This is the second of a series of videos prepared by Insolvency Experts
Director penalty notices are notices that the Australian Taxation Office may send to directors of a company that has unpaid PAYG Withholding. The notice serves to make the directors personally liable for this debt of the company.
If the company makes payments to the ATO after receipt of a director penalty notice, but subsequently goes into liquidation, the personal liability of the directors may be revived. This video explains that trap.

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