ASIC levy imposed on ACNC regulated charities an ‘unfair burden’

Governance Institute has today lodged a submission to Treasury raising concerns about the application of the ASIC Supervisory Cost Recovery Levy Act 2017 (Cth) and associated regulations to companies limited by guarantee that are also registered charities with the Australian Charities and Not-for-profits Commission (ACNC).

“The levy of $321 may not seem like much but for many charities it is a burden, and an unfair one at that. The levy is meant to offset regulatory costs however the vast majority of ACNC registered charities receive few regulatory services from ASIC, apart from registration and winding up activities,” said Steven Burrell, chief executive officer of Governance Institute.

ACNC data shows most charities have an annual turnover of less than $50,000 and operate with no paid staff.

“We support the overall premise of the ASIC Industry Funding Model,” Mr Burrell continued, “and consider that ASIC should be funded appropriately for regulatory activities it conducts. However we are concerned about the application of the Levy to charitable companies limited by guarantee.”

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Media contact: media@governanceinstitute.com.au