The Law Handbook 2024

Chapter 6.6: Community organisations 617 • not issued shares to more than 20 members in a financial year; or, if it has done this, the amount raised by issuing those shares does not exceed $2 million. Small co-operatives must lodge a simplified annual report with CAV (unless their rules require them to have their accounts audited, or an audit is requested by its members or the Registrar) within 28 days of the AGM. All co-operatives that do not fall within the definition of a small co-operative are large co-operatives . Large co-operatives must have their financial statements audited in accordance with the Corporations Act and obtain an auditor’s report. Large co-operatives must lodge an annual report, the financial report, the annual director’s report and the auditor’s report with CAV within 28 days of the AGM. The co-operative must hold its first AGM within 18 months of registration. Subsequent AGMs must be held within five months of the end of the co-operative’s financial year (specified in its rules), or at a time approved by the Registrar. For more information about setting up and running a co-operative, see www.consumer.vic.gov. au/licensing-and-registration/co-operatives. The Business Council of Co-operatives and Mutuals is Australia’s peak body for co-operatives and mutuals and has useful free information on its website (see www.bccm.coop) . Other issues to consider Registering as a charity What is a charity? According to the Charities Act, a charity: • is a not-for-profit organisation; • has purposes that are charitable and for the public benefit (i.e. achieving its purposes benefits the public generally or a section of the public); • does not have any disqualifying purpose; and • is not an individual, political party, or government entity. The Charities Act is relevant for Commonwealth law purposes. Who regulates charities? The Australian Charities and Not-for-profits Commission ( ACNC ) regulates charities and is responsible for determining whether an organisation’s purposes are charitable and for the public benefit. What are charitable purposes? A list of charitable purposes is set out in the Charities Act. These include advancing health, education, social and public welfare, religion, culture; promoting reconciliation, mutual respect and tolerance between groups of individuals in Australia; promoting and protecting human rights; advancing the security and safety of Australia or the Australian public; preventing or relieving the suffering of animals; and advancing the natural environment. A purpose that is analogous (i.e. corresponds to) to one of the charitable purposes listed in the Charities Act may also be considered to be a charitable purpose. A purpose of promoting or opposing a change to the law, or to a policy or practice (i.e. advocacy), where that promotion or opposition furthers one of the charitable purposes listed in the Charities Act, is itself a charitable purpose. Registering with the ACNC The ACNC registers charities in Australia. Registering as a charity is free and carries no annual fees. Registration as a charity is required to access federal government charity tax concessions and other benefits (discussed further below). To register as a charity, an organisation must have an Australian Business Number ( ABN ) (see ‘Australian Business Number’, below). If eligible, another advantage of registering as a charity is increased public trust in an organisation as it will be listed on a public register of charities maintained by the ACNC. Through the register, the public (including potential donors, members and volunteers) can access information about an organisation, including its activities, finances, the places it operates, and the people on the governing body. Generally, if a company limited by guarantee registers as a charity with the ACNC, it does not have to comply with several major obligations and requirements in the Corporations Act. Instead, these