Partnership submission to the proposed amendments to the private and public ancillary fund guidelines
The non-government members of the Prime Minister’s Community Business Partnership have welcomed the opportunity to make a submission to the Commonwealth’s Treasury proposed amendments to the Private Ancillary Fund Guidelines 2009 and the Public Ancillary Fund Guidelines 2011.
We support the reduction in red tape and barriers to giving and volunteerism, and accordingly are broadly supportive of the proposed amendments to the guidelines.
In our submission we provided some additional suggestions related to portability for Private Ancillary Funds; removing duplications in reporting to the Australian Charities and Not-for-profits Commission (ACNC) and the Australian Taxation Office (ATO); updating of investment strategy rules; encouraging the inclusion of Social Impact Investing structures and Program Related Investments in the guidelines; and loan guarantees over borrowings of Deductible Gift Recipients (DGRs). Our submission does not, however, recommend a change to the current distribution rates for Ancillary Funds.
We highlighted the need for broader legislative changes to the Income Tax Assessment Act 1997, to enable Ancillary Funds to distribute to other Ancillary Funds. This will enable the pooling of resources to meet a large need from a community or charity, for example if a regional disaster arises.
We also suggested that a comprehensive review of the guidelines take place every five years.
View the Partnership’s submission.
Innovation and Culture working group