What legal structures are available?

Incorporated association — state/territory-based.Company limited by guarantee (CLG) — registered federally with ASIC.Unincorporated association — informal, no separate legal identity.Trust — a trustee holds property under a deed.Co-operative — member-owned, one-member-one-vote.Indigenous corporation (CATSI Act).Legislation: Corporations Act 2001 (Cth); Associations Incorporation Acts (NSW, Vic, Qld, SA, WA, Tas, NT, ACT); Co-operatives National Law; Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth).

Incorporated association vs company limited by guarantee — what's the difference?

An incorporated association registers with one state, is cheaper and simpler, but is generally confined to that state. A CLG registers once, federally, with ASIC, and can operate Australia-wide — at the cost of heavier compliance.Legislation: Associations Incorporation Acts (NSW, Vic, Qld, SA, WA, Tas, NT, ACT); Corporations Act 2001 (Cth) ss 45B, 201A.

Can I operate in more than one state?

An incorporated association is generally confined to its home state unless it also registers with ASIC as a registrable Australian body. A CLG can operate everywhere under its single national registration.Legislation: Corporations Act 2001 (Cth) Part 5B.2.

What's a trust, and when would I use one?

A trust isn't a separate legal entity — a trustee holds property under a deed for a stated purpose. Trusts suit passive, grant-making functions (like Ancillary Funds) far better than 'doing' organisations delivering programs.Legislation: Taxation Administration (Private Ancillary Fund) Guidelines 2019; Taxation Administration (Public Ancillary Fund) Guidelines 2022.

Frequently Asked Questions

Straight answers to the questions we hear most from boards setting up and running a non-profit or charity in Australia — from choosing a legal structure through to winding up, with the legislation behind every answer.

Book a Free Consult

DISCLAIMER:

This information is not, and is not to be considered or used as legal, financial, governance, accounting or taxation advice and is general in nature.

While we present this publicly available information in a clear and concise manner on our website, it may become outdated or inaccurate. Information provided is not to be classified as an opinion and/or advice. You are obligated to check the latest information and regulatory requirements with the appropriate Australian Government and State regulatory authorities.

The Non Profit Specialists industry expert guidance available on this page and on our website should be supplemented by additional legal and/or accounting advice on key aspects of a proposed Structure of Governance and the legal requirements relevant to your circumstances. Should you require such advice, please make an enquiry to our office to be put in direct touch with a qualified solicitor, lawyer, accountant or tax agent.

Non Profit Specialists take no responsibility for any inaccuracies and refuse any and all responsibility and liability for decisions you make based on publicly available information republished on our website.

This information is general information for orientation purposes, compiled to answer Frequently Asked Questions (FAQs) directly, with the specific legislation or regulator guidance behind every answer cited underneath it. Our Disclaimer on this website page applies to all Frequently Asked Questions (FAQs) and can be reviewed above and at the end of this page.

Jump to a category

A. Getting Started — The Basics

C. Forming Your Board or Committee

E. Money and Tax

G. Ongoing Compliance and Reporting

I. Advocacy, Campaigning and Political Activity

K. Changing, Merging or Winding Up

M. Practical Next Steps

B. Choosing a Legal Structure

D. Charity Registration and the ACNC

F. Fundraising — State, Territory and Federal Law

H. Directors, Related Party Transactions and Conflicts of Interest

J. Staff, Volunteers and Insurance

L. Transparency and the Charity Register

Category A

Getting Started — The Basics

Category b

Choosing a Legal Structure

Category C

Forming Your Board or Committee

Category D

Charity Registration and the ACNC

Category e

Money and Tax

Category f

Fundraising — State, Territory and Federal Law

Fundraising is one of the most heavily regulated — and most misunderstood — areas for any charity or non-profit. Unlike charity registration itself, which is federal, public fundraising is regulated separately in each state and territory, with its own legislation, terminology, and licensing regulator. On top of that, national consumer law applies to every appeal regardless of location, and games of chance (raffles, lotteries, bingo) are regulated separately again. This section pulls all of that together.

Category G

Ongoing Compliance and Reporting

Category h

Directors, Related Party Transactions and Conflicts of Interest

Category i

Advocacy, Campaigning and Political Activity

Category J

Staff, Volunteers and Insurance

Category k

Changing, Merging or Winding Up

Category l

Transparency and the Charity Register

Category M

Practical Next Steps

General information: for general questions about charity registration or ACNC requirements, you can contact the ACNC directly on 13 22 62.

Book a free consult

If you're interested in assistance to set up a non profit or a charity, please contact us below. We offer free consultations, and you can discuss with one of our experts how we can assist you in setting up and establishing your organisation.

Please fill out the form and then schedule your free consultation at your preferred time and day. We offer extended consultation hours from 9 am to 10 pm Australian Eastern Standard Time, Monday to Saturday.

Sources

Legislation

Charities Act 2013 (Cth) — ss 5, 6, 11, 12

Australian Charities and Not-for-profits Commission Act 2012 (Cth) — ss 30-15, 35-10, 40-5, 40-10, 45-10, 50-10, 60-5, 205-25, Division 35, Part 7-2

Australian Charities and Not-for-profits Commission Regulation 2022 (Cth) — Governance Standards 1-6

Corporations Act 2001 (Cth) — ss 45B, 114, 136, 180-184, 191, 195, 201A, 207-230 (Chapter 2E)

Income Tax Assessment Act 1997 (Cth) — Divisions 30, 50

A New Tax System (Goods and Services Tax) Act 1999 (Cth)

A New Tax System (Australian Business Number) Act 1999 (Cth)

Fringe Benefits Tax Assessment Act 1986 (Cth) — FBT exemptions and rebates

Land Tax Act 2005 (Vic); Duties Act 1997 (NSW); Payroll Tax Act 2007 (NSW) and equivalent state/territory land tax, duties and payroll tax legislation (varies by state/territory)

Fair Work Act 2009 (Cth)

Commonwealth Electoral Act 1918 (Cth)

Taxation Administration (Private Ancillary Fund) Guidelines 2019; Taxation Administration (Public Ancillary Fund) Guidelines 2022

Corporations (Fees) Regulations 2001 (Cth); Corporations (Review Fees) Regulations 2003 (Cth)

Associations Incorporation Act 2009 (NSW); Associations Incorporation Reform Act 2012 (Vic); Associations Incorporation Act 1981 (Qld); Associations Incorporation Act 1985 (SA); Associations Incorporation Act 2015 (WA); Associations Incorporation Act 1964 (Tas); Associations Act 2003 (NT); Associations Incorporation Act 1991 (ACT)

Co-operatives National Law; Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth)

Charitable Fundraising Act 1991 (NSW) and Charitable Fundraising Regulation 2015 (NSW); Fundraising Act 1998 (Vic); Collections Act 1966 (Qld); Collections for Charitable Purposes Act 1939 (SA); Charitable Collections Act 1946 (WA); Collections for Charities Act 2001 (Tas); Charitable Collections Act 2003 (ACT)

Community Gaming Act 2018 (NSW) and equivalent state/territory community gaming, lottery and gaming legislation

Competition and Consumer Act 2010 (Cth) s 18 and Schedule 2 (Australian Consumer Law)

National Fundraising Principles (agreed by Commonwealth, state and territory governments, February 2023)

Work Health and Safety Act 2011 (Cth) and equivalent state/territory model WHS Acts (NSW, Qld, SA, WA, Tas, NT, ACT); Occupational Health and Safety Act 2004 (Vic)

State workers' compensation legislation; state and territory long service leave legislation; state-based working with children/vulnerable people check legislation (all vary by state/territory)

Treasury Laws Amendment (Refining and Improving Our Tax System) Act 2023 (Cth) — DGR register reforms

Competition and Consumer Act 2010 (Cth) s 50; Treasury Laws Amendment (Mergers and Acquisitions Reform) Act 2024 (Cth) — mandatory merger control regime

Charitable Trusts Act 1993 (NSW); Charities Act 1978 (Vic); Trusts Act 1973 (Qld); equivalent state trustee/charitable trusts legislation — cy-près doctrine

Federal regulators

ACNC (acnc.gov.au) — 13 22 62 — including Commissioner's Policy Statements on registration, voluntary revocation and revocation by the ACNC; guidance on advocacy and campaigning, External Conduct Standards, Basic Religious Charities, employing staff, engaging volunteers, common questions about the application process, and the Charity Register

ASIC (asic.gov.au)

ATO (ato.gov.au)

Australian Business Register (abr.gov.au)

Australian Electoral Commission (aec.gov.au)

Australian Competition and Consumer Commission (accc.gov.au)

State and territory revenue offices (e.g. Revenue NSW, State Revenue Office Victoria, Queensland Revenue Office, RevenueSA, RevenueWA) — state tax exemptions for charities

State and territory fundraising regulators (e.g. NSW Fair Trading, Consumer Affairs Victoria, Queensland Office of Fair Trading, SA Consumer and Business Services, WA Consumer Protection, Tasmania CBOS, ACT Access Canberra) — fundraising licensing

DISCLAIMER:

This information is not, and is not to be considered or used as legal, financial, governance, accounting or taxation advice and is general in nature.

While we present this publicly available information in a clear and concise manner on our website, it may become outdated or inaccurate. Information provided is not to be classified as an opinion and/or advice. You are obligated to check the latest information and regulatory requirements with the appropriate Australian Government and State regulatory authorities.

The Non Profit Specialists industry expert guidance available on this page and on our website should be supplemented by additional legal and/or accounting advice on key aspects of a proposed Structure of Governance and the legal requirements relevant to your circumstances. Should you require such advice, please make an enquiry to our office to be put in direct touch with a qualified solicitor, lawyer, accountant or tax agent.

Non Profit Specialists take no responsibility for any inaccuracies and refuse any and all responsibility and liability for decisions you make based on publicly available information republished on our website.

This information is general information for orientation purposes, compiled to answer Frequently Asked Questions (FAQs) directly, with the specific legislation or regulator guidance behind every answer cited underneath it. Our Disclaimer on this website page applies to all Frequently Asked Questions (FAQs)and can be reviewed below and at the top of this page.

Not-for-Profit and Charity Experts. Discounted flat fees. We have offices Australia wide and provide consultations from 9am - 10:30 pm AEST Monday to Saturday. SYDNEY (02) 9375 2209 BRISBANE (07) 3181 4340 PERTH (08) 9288 1746 AFTER HOURS +61 480 897 412

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Frequently Asked Questions

Jump to a category

Category A

Getting Started — The Basics

What is a non-profit?

What is a charity?

What’s the difference between a non-profit and a charity?

How do I set up a charity or non-profit?

How can I register?

How much does it cost?

How long does it take?

Do I need a lawyer?

Is it hard to set up a charity and register myself?

What’s an ABN, and do I need one?

Category b

Choosing a Legal Structure

What legal structures are available?

Incorporated association vs company limited by guarantee — what's the difference?

Can I operate in more than one state?

What's a trust, and when would I use one?

Category C

Forming Your Board or Committee

How many people do I need?

Do I need a board, and how big should it be?

Can family members be on the board together?

Do governance duties only apply to people officially elected to the board or committee?

How do we change our constitution once we've registered?

Category D

Charity Registration and the ACNC

What is the ACNC?

Do I have to register with the ACNC?

What are the 12 charitable purposes?

What's the difference between the 12 charitable purposes and the 14 charity subtypes?

What is a Public Benevolent Institution (PBI)?

What is a Basic Religious Charity (BRC)?

Do the ACNC Governance Standards apply to every charity?

What are the External Conduct Standards, and when do they apply?

What is DGR status, and how is it different from being a charity?

I've heard DGR registration used to involve separate government departments — has that changed?

Do I have to complete the ACNC application in one sitting?

Can I re-apply if my charity registration application is refused?

Does the ACNC issue my charity a specific registration number?

Can I use the ACNC logo to show we're a registered charity?

Can our charity's registration be backdated?

What information about our charity is public once we're registered?

Is there a 'streamlined reporting' arrangement so we don't have to report the same information twice?

Category e

Money and Tax

Do non-profits and charities pay tax?

Do we need to register for GST?

What's the difference between an FBT exemption and an FBT rebate for a charity?

Can our charity offer salary packaging to employees?

Are charities automatically exempt from state taxes like payroll tax, land tax and stamp duty?

Can we pay staff or board members?

Category f

Fundraising — State, Territory and Federal Law

Do we need a licence to fundraise from the public?

Why does every state call the fundraising licence something different?

Does registering as an ACNC charity automatically give us permission to fundraise everywhere?

What are the 'National Fundraising Principles'?

If we fundraise in more than one state, do we need a licence in each one?

Does an online or crowdfunding campaign count as 'fundraising' under these laws?

Can we run a raffle to raise money?

Do we need a separate permit for a raffle, on top of our general fundraising licence?

What's the difference between a charitable raffle and a 'trade promotion'?

Does the Australian Consumer Law apply to our charity's fundraising?

Are there rules about physical collection tins, boxes or bins used for fundraising?

Are there special rules if children help with fundraising (like door-knocking or event volunteering)?

What happens if we fundraise without the right licence or authority?

If we use a paid fundraiser or telemarketing company, do we have extra obligations?

How do I check if an organisation actually holds a valid fundraising licence?

Category G

Ongoing Compliance and Reporting

What do I have to do every year?

Can we lose our charity status?

Category h

Directors, Related Party Transactions and Conflicts of Interest

What is a related party transaction?

Not-for-Profit and Charity Experts. Discounted flat fees.

We have offices Australia wide and provide consultations from
9am - 10:30 pm AEST Monday to Saturday.

SYDNEY (02) 9375 2209
BRISBANE (07) 3181 4340
PERTH (08) 9288 1746
AFTER HOURS +61 480 897 412

Advocacy, Campaigning and Political Activity