The Federal Government has announced significant reforms to the regulation of Private Ancillary Funds (PAFs) and Public Ancillary Funds (PuAFs) as part of its broader objective to increase philanthropic giving in Australia.

These changes flow from recommendations by the Productivity Commission and recent Treasury consultations and are expected to have a significant impact on how ancillary funds operate and plan their distributions. This also builds on the broader regulatory focus outlined in our previous article, which discusses similar issues around the interpretation of benefits and compliance expectations for ancillary funds.

Renaming of ancillary funds to ‘Giving Funds’

Private and Public Ancillary Funds will be renamed ‘Giving Funds’.

The government has indicated that this change is intended to more clearly reflect the core purpose of these structures, which is to distribute funds to eligible charities rather than to accumulate capital over time.

Minimum annual distribution rates

The government has announced it will align the minimum annual distribution rates for Private and Public Ancillary Funds to 6%.

At present:

• Private Ancillary Funds are required to distribute 5% of net assets each year.
• Public Ancillary Funds are required to distribute 4% of net assets each year.

Distribution smoothing

To offset the impact of higher annual distribution requirements, the government has announced that Giving Funds will be allowed to smooth distributions over a three-year period.

This means funds will be able to average their minimum distribution obligation across multiple years, rather than meeting the minimum on an annual basis. The measure is intended to:

• support more strategic grant making
• reduce the risk of forced asset sales in years of weaker investment performance.

Timing of change and transitional rules

The new rate will apply from the first financial year following amendments to the Giving Fund guidelines, and existing Giving Funds will not need to meet the new distribution rate for two years.

How SW can help

For trustees of Giving Funds, the changes create both compliance obligations and strategic opportunities. SW can help with:

• modelling the cash flow and investment impact of a 6 percent distribution rate across different market return scenarios
• reviewing trust deeds and governing documents to ensure they permit higher distributions and three-year averaging
• designing grant strategies that use averaging effectively while still meeting annual compliance requirements
• aligning distribution timing with investment performance and liquidity needs
• support large capital distributions
• documenting trustee decisions to support ACNC and ATO expectations.

Contributor

Heather Dyke

The post Government announces changes to Private and Public Ancillary Funds (Giving Funds) appeared first on SW Accountants & Advisors.

For the fifth year, we deliver an interactive 5-part seminar series to aspiring and emerging leaders in the Property Fund Management sector, with direct access to leading industry experts and their experience, strategic industry insights and pitfalls, and key issues ranging from structuring, debt and equity through to legal and compliance.

Facilitated by our property funds specialists, featuring content developed alongside industry, each session features practical working considerations and discussions with market leaders.

In 2021, we are delivering this course online, nationally.

Who should attend?

• Emerging leaders in property fund management
• Professionals involved in the property funds industry
• Property developers looking to move into funds management

Benefits

• Learn how to protect your business & personal assets
• Different approaches to structuring a product
• Identifying methods to raise debt and equity capital
• Market trends in the different asset classes
• Tax issues arising from different structures
• Effective exit strategies for your investors
• How has COVID changed the landscape

Series details

Cost (ex GST)

• $500 per person for the series

• $1,000 group booking for up to 3 people 

Timing

4.00 – 6.00pm on Tuesdays mid-month, minimising disruption to your day, week and month.

Series information

1  Fundamentals for Success /1    16 March

A brief overview of the series structure before hearing first-hand from industry specialists the key lessons they’ve learnt, what challenged them the most, what worked, what didn’t and tips on building the right team.

2  Fundamentals for Success /2    20 April

How do you separate your business fund from your personal assets? Learn how to protect yourself, your funds and the appropriate ownership structures recommended to protect your investment and maximise your return.

3  Fund Structuring    18 May

You may have a plan, but do you know which fund structure will give you the best competitive advantage? The industry experts will talk you through the fund structure matrix which covers local and international equity, fee structure and more.

4  Debt & Equity    15 June

Everything you need to consider and what to avoid in modern-day financing. Identify both the traditional and alternative methods for obtaining funding, how to strike a deal with the banks and how best to raise your debt and equity.

5  Legal, Regulatory & Compliance    13 July

Ensuring your i’s are dotted and t’s are crossed are important for the property funds management industry. Our experts will talk you through the documentation and practical application involved in your fund set-up and provide tips on avoiding common pit-falls to ensure you stay compliant.

Series experts

Each session features experienced experts:

Industry associations

Our significant involvement in the industry provides us with an expert level of knowledge across the business, tax and accounting issues that impact the sector.

We take pride in being at the forefront of reforms, whether legislative or administrative, and we are actively involved with key industry bodies.

We have a long and close relationship with the Property Funds Association of Australia, and we are actively involved in various Committees with the Property Council of Australia.

We are also regularly involved in consultative processes, making submissions to Treasury and the ATO.

A complete service solution for property fund leaders

We are recognised as specialists and trusted advisors to the funds management industry. We provide a range of tailored services to our listed and unlisted property fund clients, including:

Contact us

If you have any queries or would like more information, please contact the Marketing team via marketing@sw-au.com.

The post Emerging Property Funds Series 2021 appeared first on SW Accountants & Advisors.

We take the lead supporting tomorrow’s leaders with our Emerging Property Fund Series in Melbourne and Sydney.

This interactive five part series is facilitated by our own property funds specialists and industry experts, who will provide strategic insight into property funds management and key issues ranging from structuring, debt and equity through to legal and compliance.

Benefits of attending

• Learn how to protect your business and personal assets
• Different approaches to structuring your product
• Identifying methods to raise your debt and equity capital
• Market trends in the different asset classes
• Tax issues arising from different structure
• Effective exit strategies for your investors

Event details

Date: 5 sessions hosted on a monthly basis starting Wednesday, 23 October 2019 (Melbourne) / Thursday, 24 October 2019 (Sydney)
Time: 5:45pm – 8pm (canapes and refreshments provided)
Melbourne Venue: ShineWing Australia, L10, 530 Collins Street, Melbourne
Sydney Venue: ShineWing Australia, L8, 167 Macquarie Street, Sydney
Format: Interactive class-room style
Cost: $800 per person for the series or group booking for up to 3 people for $1,600 (prices exclude GST)

This includes:

• Five 2-hour sessions and networking opportunities with speakers and attendees
• Soft and hard copies of speaker presentations and handouts
• Automatic inclusion to our Emerging Property Funds Series, including invitations to future networking events

Session topics and dates 

Session 1: Fundamentals for Success, Property Funds – Wednesday, 23 October 2019 (Melbourne) / Thursday, 24 October 2019 (Sydney)

Speakers/Panelists: Howard Brenchley (APN Property Group), Paul Healy (Property Funds Association), Stuart Wilton (Centuria), Steven Bennett (Charter Hall) and Stephen O’Flynn (ShineWing Australia)

This introductory session will provide a brief overview of the series structure. You will hear first-hand from industry specialists the key lessons they’ve learnt, what challenged them the most, what worked, what didn’t and tips on building the right team.

Session 2: Fundamentals for Success, Personal and Business Issues – Wednesday, 27 November 2019 (Melbourne) / Thursday, 28 November 2019 (Sydney)

Please note, the Sydney session will be at 3pm – 5pm on this day.
Speakers/Panelists: Daren McDonald (ShineWing Australia) and Abi Chellapen (ShineWing Australia)
How do you separate your business fund from your personal assets? In this second session you will learn how to protect yourself, your funds and the appropriate ownership structures recommended to protect your investment and maximise your return.

Session 3: Fund Structuring – Wednesday 26 February 2020 (Melbourne) / Thursday, 27 February 2020 (Sydney)

Speakers/Panelists: David Southon (Aliro Group), Matthew Chun (Development & Property Consultant) and Simon Tucker (ShineWing Australia)
You may have a plan, but do you know which fund structure will give you the best competitive advantage? The industry experts will talk you through the fund structure matrix which covers local and international equity, fee structure and more.

Session 4: Debt and Equity – Wednesday, 25 March 2020 (Melbourne) / Thursday, 26 March 2020 (Sydney)

Speakers/Panelists: Warren Boothman (Open Corp), John Taylor (Crestone), Dan Freeman (Commonwealth Bank) and Matthew Schofield (ShineWing Australia)
This session covers everything you need to consider and what to avoid in modern-day financing. Identify both the traditional and alternative methods for obtaining funding, how to strike a deal with the banks and how best to raise your debt and equity.

Session 5: Legal, Regulatory and Compliance – Wednesday 22 April 2020 (Melbourne) / Thursday, 23 April 2020 (Sydney)

Speakers/Panelists: Legal advisor, Rene Muller (ShineWing Australia) and Rami Eltchelebi (ShineWing Australia)
Ensuring your i’s are dotted and t’s are crossed are important for the property funds management industry. Our experts will talk you through the documentation and practical application involved in your fund set-up and provide tips on avoiding common pit-falls to ensure you stay compliant.\

More information

Know someone interested in property fund management? You are welcome to direct any interested property professionals to this web page or to the ShineWing Australia Marketing team via marketing@sw-au.com.

The post Emerging Property Funds Series 2019/20 – Melbourne and Sydney appeared first on SW Accountants & Advisors.

We have created this interactive five-part series aimed at tomorrow’s leaders who are looking to learn more about the ‘business’ of property funds management, entrepreneurs looking to break into the sector and developers looking to establish a property funds management business.

We are also delighted to bring you highly regarded leading industry speakers from APN Property Group, Property Funds Association, Open Corp, Commonwealth Bank of Australia, Aliro Group and McMahon Clarke.

Benefits of attending

• Network with today and tomorrow’s leaders in the sector
• Learn what worked well and what didn’t work well from industry leaders
• Learn the pitfalls and traps industry veterans experienced during their journey
• Learn how to protect your personal and business assets
• Understand the market trends in the asset class
• Recognise methods to raise your debt and equity
• Understand what structure is best for a tax effective exit for your investors
• Identify strategies to raise your debt and equity
• Master your compliance obligations – learn how to obtain an AFSL and stay compliant

Event details

Date: 5 sessions hosted on a monthly basis starting Tuesday, 9 October 2018 (Melbourne) / Wednesday, 10 October 2018 (Sydney)
Time: 5.45pm – 8.00pm (canapes and refreshments provided)
Melbourne Venue: ShineWing Australia, Level 10, 530 Collins Street, Melbourne
Sydney Venue: ShineWing Australia, Level 8, 167 Macquarie Street, Sydney
Format: Interactive class-room style format where our expert guest speakers will share their insight and expertise on a key component of the property fund management process
Cost: $800 per person for the series or group booking for up to 3 people for $1,600 (prices exclude GST)

This includes:

• Five 2-hour sessions and networking opportunities with speakers and attendees
• Soft and hard copies of speaker presentations and handouts
• Automatic inclusion to our Emerging Property Funds Series, including invitations to future networking events

Session topics and dates 

Session 1: Fundamentals for Success, Property Funds – Tuesday, 9 October 2018 (Melbourne) / Wednesday, 10 October 2018 (Sydney)
Speakers/Panelists: Howard Brenchley (APN Property Group), Paul Healy (Property Funds Association), Rami Eltchelebi (ShineWing Australia), Hugh Thomson, Moelis Australia

This introductory session will provide a brief overview of the series structure. You will hear first-hand from industry specialists the key lessons they’ve learnt, what challenged them the most, what worked, what didn’t and tips on building the right team.

Session 2: Fundamentals for Success, Personal and Business Issues – Tuesday, 20 November 2018 (Melbourne) / Wednesday, 21 November 2018 (Sydney)
Speakers/Panelists: Daren McDonald (ShineWing Australia), Rosalind Myint (ShineWing Australia) and Abi Chellapen (ShineWing Australia)

How do you separate your business fund from your personal assets? In this second session you will learn how to protect yourself, your funds and the appropriate ownership structures recommended to protect your investment and maximise your return.

Session 3: Fund Structuring – Tuesday 19 February 2019 (Melbourne) / Wednesday, 20 February 2019 (Sydney)
Speakers/Panelists: David Southon (Aliro Group), Matthew Chun (Development & Property Consultant) and Simon Tucker (ShineWing Australia)

You may have a plan, but do you know which fund structure will give you the best competitive advantage? The industry experts will talk you through the fund structure matrix which covers local and international equity, fee structure and more.

Session 4: Debt and Equity – Tuesday, 19 March 2019 (Melbourne) / Wednesday, 20 March 2019 (Sydney)
Speakers/Panelists: Warren Boothman (Open Corp), John Blight (ShineWing Australia), Dan Freeman (Commonwealth Bank of Australia)

This session covers everything you need to consider and what to avoid in modern-day financing. Identify both the traditional and alternative methods for obtaining funding, how to strike a deal with the banks and how best to raise your debt and equity.

Session 5: Legal, Regulatory and Compliance – Tuesday 16 April 2019 (Melbourne) / Wednesday, 17 April 2019 (Sydney)
Speakers/Panelists: Brendan Ivers (McMahon Clarke) and Rami Eltchelebi (ShineWing Australia)

Ensuring your i’s are dotted and t’s are crossed are important for the property funds management industry. Our experts will talk you through the documentation and practical application involved in your fund set-up and provide tips on avoiding common pit-falls to ensure you stay compliant.

More information

Know someone interested in property fund management? You are welcome to direct any interested property professionals to this web page or to the ShineWing Australia Marketing team via marketing@sw-au.com.

The post Emerging Property Funds Series 2018/19 – Melbourne and Sydney appeared first on SW Accountants & Advisors.