Revoked charity accuses ACNC of failing to satisfactorily explain decision
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The national charity regulator, the Australian Charities and Not-for-profits Commission (ACNC), has revoked the charity status of Aussie Farms Inc following an investigation.
Revocation of charity status takes away the organisation’s Commonwealth charity tax concessions, including income tax exemption, fringe benefits tax rebates and goods and services tax concessions. The revocation will appear on the ACNC Charity Register record for Aussie Farms Inc.
Aussie Farms was registered by the ACNC effective 1 January 2018, with the purpose of preventing or relieving the suffering of animals.
The investigation into the charity was completed on 18 November 2019, with the decision to revoke charity status effective from that date.
ACNC Commissioner, the Hon Dr Gary Johns, said revocation of charity status was reserved for the most serious of cases. “Charities must stick to their purpose, and maintain their obligations under the ACNC Act, Charities Act and adhere to Governance Standards,” he said.
In his Commissioner’s column on 24 January 2019, the ACNC Commissioner acknowledged media reports relating to Aussie Farms Inc, and although unable to comment on specific issues, reassured the public that the ACNC takes all concerns about registered charities seriously and will investigate and take compliance action as appropriate.
Dr Johns said: “In taking compliance and enforcement action, the ACNC follows its Regulatory Approach Statement to ensure that matters are investigated properly, the appropriate compliance action is taken, and our regulatory action is proportionate to the problems we seek to address. ”
Although the revocation is reflected on the Register, the ACNC is prevented from publishing the findings from investigations, or the nature of the concerns, due to secrecy provisions in the ACNC Act.
Meanwhile, in a statement published through their website, Aussie Farm said “ACNC has failed to satisfactorily explain why this decision has been made, other than a lack of formal documentation regarding the decision to publish our Farm Transparency Map in January this year.”
According to Aussie Farm, ACNC appear “unable or unwilling to explain why such documentation is necessary or how we were to retroactively create it without engaging in fraud.” Questions they have asked of the ACNC in earlier communication this year, the statement continues, have been ignored and left unanswered.
The group is calling for an external review of the ACNC’s ability to perform its role independently and consider whether to pursue legal action for gross misuse of the ACNC Act.
The group provoked outrage when it published an online database of farms across Australia in January, which it said it did to help the public understand where its food came from.
At the time, then-Agriculture Minister David Littleproud said Aussie Farms didn’t deserve its charity status.
Prime Minister Scott Morrison referred to the group as “grubs” on 2GB and called their actions despicable.
Aussie Farms also held protests at farms, including abattoirs, with the government later targeting animal rights protesters with laws to crack down on trespassers on farms.
Aussie Farms would be able to appeal the decision but the findings from the investigation are to remain private due to secrecy provisions in the regulator’s governing act.
Dr Johns said: “Where we decide to take compliance action, the affected charity has rights of review and appeal, including through external forums such as the AAT, and therefore we must also ensure that we follow proper decision–making principles. We aim to complete investigations as efficiently as possible, whilst ensuring that our processes are robust and fair.”
Pearl Dy is a community manager and journalist. She is passionate about business and development particularly involving not-for-profits, charity and social entrepreneurship.
