“Cutting out the red tape” is a popular phrase to many people because it means less work, however this time it may also save up to $400,000 a year in the community sector claims Andrew Barr in a release today.
Expect people to like that phrase even more soon.
The ACT Government is committed to reducing red tape for the community sector in the ACT, including the introduction of changes to the Associations Incorporation Regulation 1991 that will double the threshold before an incorporated association is required to appoint an auditor.
Under these changes, which will be made before the end of this financial year, incorporated associations will only be required to appoint an auditor registered under the Corporations Act 2001 if their gross receipts are greater than $1,000,000.
This is a doubling of the current threshold of $500,000, which has not changed since the early 1990s, and brings it into line with the threshold that will be applied by the Australian Charities and Not-for-profit Commission (ACNC).
“These are practical, effective and efficient measures that will support the great work that community organisations do in the ACT,” Mr Corbell said.
Once the change is confirmed, all incorporated associations with annual gross receipts between $500,000 and $1,000,000 will be able to appoint auditors who are members of the Institute of Chartered Accountants, the Institute of Public Accountants or of CPA Australia, but for these associations it will not be necessary for the auditor to also be registered under the Corporations Act 2001 (which makes such audit services more expensive).