The Australian Charities and Not-for-profits Commission (the ACNC) has announced that non-government schools will not have to make financial reports directly to the ACNC. The announcement covers the 2014 and 2015 reporting periods. The ACNC has stated that it will instead extract data from the Commonwealth Department of Education and Training Financial Questionnaires, which are usually completed as a condition of Commonwealth funding.

This means that non-government schools will not be required to fill out another financial questionnaire as part of their annual reporting obligations to the ACNC, although other reporting obligations will continue.

The announcement was made by ACNC Commissioner Susan Pascoe AM at the Association of Independent Schools New South Wales (AISNSW) Governance Symposium. It also formalises the transitional arrangements that the ACNC had in place to accept the financial reports already given to the Department of Education and Training. That approach is outlined in an ACNC Fact sheet.

Ms Pascoe said 'as Commissioner, I intend to seek amendment to the ACNC Regulation to extend the transitional period to continue this arrangement while we work towards a long-term streamlined reporting solution for this highly regulated sector.

We will continue to consult with the Independent Schools Council of Australia and other State and Territory bodies, with the intention to implement longer term data sharing arrangements with the Department of Education and Training.'

The move has been welcomed by organisations such as the National Catholic Education Commission. The Commission's Executive Director, Ross Fox, said that 'we are glad that Commissioner Susan Pascoe and her colleagues have recognised that for a highly regulated sector like non-government schools, the ‘public trust and confidence’ and transparency that the ACNC has sought in the charitable sector were already in place.'

Non-government schools that are also registered as charities have an obligation to make annual reports to the ACNC in the form of Annual Information Statements. This is in addition to requirements to report to ACARA, My School, Educational authorities and State and Territory bodies.

The ACNC

The ACNC registers organisations as charities. It also provides advice and guidance to organisations on how to meet their obligations as charities.

The ACNC has been the subject of constant speculation about its existence and mission. The current federal government has attempted to introduce legislation to abolish the ACNC, but it has been unable to pass this in the Senate. This is despite a Pro-Bono Australia survey finding that four out of five charities favoured keeping the ACNC.

The political tussle has been detailed in a blog by CompliSpace. If the ACNC were to be abolished, reporting requirements would return to the States, and some of the ACNC functions would be transferred to the Australian Tax Office.