What's in the November 2022 update?
- Social Enterprise Day 2022
- Law and policy updates: Parliament’s proposed response to significant data breaches, stronger legal protection for consumers and small businesses, and secure jobs, better pay?
- Updated resources: Documents, records, and requests for access, and disputes with members.
- Upcoming webinars:
- Social Media and the Law, Tuesday 22 November, 12:45-2PM (AEDT)
- Top Legal Issues for the Board Agenda, Tuesday 6 December, 12:45-2PM (AEDT)
- News from our sector: Respect@Work website launched, Scams Awareness Week, natural disaster support from the Australian Taxation Office, and time is running out to avoid losing deductible gift recipient (DGR) status and to apply for a Director Identification Number (DIN).
Social Enterprise Day
Today is Social Enterprise Day, which celebrates the work social enterprises do to serve communities in need.
If you're thinking of starting or growing a social enterprise, it’s important to understand what the legal requirements are and to spend some time getting the foundations right.
In our popular training module Social Enterprise and the Law, our lawyers will guide you through the key issues to consider when starting a social enterprise, from choosing the right legal structure to tax concessions and charity status.
Our free resources Introduction to social enterprises and Social Enterprise Guide are also a great place to start.
Law and policy updates
Parliament’s proposed response to significant data breaches
In response to significant data breaches by cyber hackers in Australia in the last few months, the Attorney-General has introduced a bill (the Privacy Legislation Amendment (Enforcement and Other Measures) Bill 2022) to parliament that will amend laws (including the Privacy Act 1988) so that:
- the Australian Communications and Media Authority (ACMA) (responsible for the regulation of communications and media in Australia) can disclose information to non-corporate Commonwealth entities responsible for enforcing Commonwealth laws,
- the Office of the Australian Information Commissioner (OAIC) (responsible for the regulation of privacy and freedom of information in Australia) will have expanded enforcement and information sharing powers, and
- penalties for serious or repeated interferences with privacy will be increased significantly.
For cases of serious or repeated interference with privacy by an entity (which is a civil penalty under the Privacy Act), the penalty will be increased to $2.5 million for a person other than a body corporate. The current penalty for a person other than a body corporate is $444,000.
- For a body corporate, the increased penalty will be:
- three times the value of the benefit obtained for the breach, or
- (if the court can’t determine the value of the benefit) 30% of the body corporate’s adjusted turnover in the relevant period, and
- capped at $50 million.
The current penalty for a body corporate is $2.5 million.
These proposed changes should improve the ability of government agencies to share information and respond to data breaches as well as encouraging organisations that collect data to comply with privacy legislation. The bill has been referred to the Legal and Constitutional Affairs Legislation Committee which will issue a report on 22 November 2022. It’s likely that Parliament will want to approve this bill without delay.
To find out more about privacy laws, cyber security and your organisation’s obligations see our privacy webpage. The OAIC also publishes guidance on privacy laws.
Stronger legal protection against unfair contract terms
Protections for Australian consumers and small businesses, including not-for-profits, have been strengthened with the passing of the Treasury Laws Amendment (More Competition, Better Prices) Act 2022. This Act amends the Australian Consumer Law (set out in Schedule 2 of the Competition and Consumer Act 2010) by increasing maximum penalties for breaches of the Australian Consumer Law (from 10 November 2022) and making unfair contract terms in consumer and small business contracts illegal (from 9 November 2023). At present, unfair contract terms can only be rendered void and unenforceable as a result of court action.
The Australian Competition and Consumer Commission (ACCC), which oversees and enforces the protections available to consumers and small businesses under the Australian Consumer Law, has welcomed the new penalties and expansion of the unfair contract terms laws.
To learn more about your not-for-profit's legal obligations, see our webpage on understanding contracts.
Secure jobs, better pay?
Federal Parliament has considered the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 that proposes to amend the Fair Work Act 2009. The bill proposes significant reforms to Australian workplace laws, particularly regarding the multi-employer bargaining provisions.
The bill has been approved by the House of Representatives and referred to the Education and Employment Legislation Committee to report to the Senate. We are monitoring developments and will keep you posted on any further updates.
Updated resources
Documents, records, and requests for access
Disputes with members
Upcoming webinars
Register now for our last webinars of the year!
Social Media and the Law
Tuesday 22 November, 12:45-2PM (AEDT)
If poorly managed, social media can impact negatively on your organisation and its people. Join our webinar to learn the key legal risks involved in using social media and how to manage them.
Top Legal Issues for the Board Agenda
Tuesday 6 December, 12:45-2PM (AEDT)
In our last webinar of 2022, we’ll provide a short, sharp overview of five current legal issues to be aware of as you look ahead to 2023.
News from our sector
Respect@Work website launched
With the passing the House of Representatives earlier this month, Respect@Work launched their website. The new site provides resources for employers and workers on creating a safe and respectful workplace. Read more about the Bill and the new positive duty on employers to prevent sexual harassment and discrimination.
Scams Awareness Week
Last week was Scams Awareness Week, and with privacy breaches continuing to make headlines, it's an important reminder to stay on top of privacy and cyber security processes. Concerns are held around the vulnerability of the not-for-profit sector to the increasing rates of cyber-attacks and scams. Another concerning trend is the rise of fake charity scams, with the Australian Charities and Not-for-profits Commission recording over 600 reports this year.
What you can do:
- Read our free resources including our privacy guide, fact sheet on the Notifiable Data Breaches scheme and fact sheet on cyber security.
- Follow Scamwatch on twitter or subscribe to email updates to stay up to date on latest scams.
Natural disaster support from the Australian Taxation Office (ATO)
f your organisation is having difficulty meeting your tax obligations due to the recent floods or other natural disasters, you can contact the ATO for assistance. Your not-for-profit may also be eligible for financial support offered by individual States and Territories.
Avoid losing deductible gift recipient (DGR) status
The deadline for non-government DGR organisations to register as a charity and maintain DGR status is 14 December 2022. If you require more time to register, your organisation may be eligible for an extension. See the Australian Taxation Office website for further information.
Apply for a Director Identification Number (DIN)
Directors are now required to have a DIN. In certain circumstances, directors may need to apply for a DIN by 30 November 2022. Find out more about if this applies to you.
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