Amendments to Private and Public Ancillary Fund Guidelines

An exposure draft and explanatory statement have been released for public comment with proposed amendments to the Private Ancillary Fund Guidelines 2009 and the Public Ancillary Fund Guidelines 2011.

The Private Ancillary Fund and Public Ancillary Fund Amendment Guidelines 2015 (amending guidelines) include a number of amendments, including to update the Private Ancillary Fund Guidelines 2009 to incorporate improvements in the later made Public Ancillary Fund Guidelines 2011, and to reflect the introduction of the Australian Charities and Not-for-profits Commission (ACNC).

The amending guidelines also introduce portability for private ancillary funds, so that there is consistency for private ancillary funds and public ancillary funds. Subject to certain requirements being met and with the agreement of the Commissioner of Taxation, this provides private ancillary funds with the flexibility to transfer their net assets to another private ancillary fund. Portability of funds between trustees and managers has already been available to public ancillary funds.

The amending guidelines also amongst other things:

  • include a number of administrative improvements including where materials have been provided to the ACNC, the materials do not have to also be provided to the Australian Taxation Office;
  • update the matters to be considered by trustees in developing and maintaining an investment strategy, including the status of the fund as a registered charity, and any perceived or actual material conflicts of interest in holding particular investments;
  • include adjustments to the investment strategy rules to remind trustees of their core obligations, and a small increase in the penalty for failing to comply with investment strategy rules;
  • amend the investment limitations to allow a fund to provide a loan guarantee over its assets for the sole benefit of a deductible gift recipient, provided that such a guarantee is consistent with the governing rules of the fund; and
  • reduce the minimum annual distribution rate to provide greater flexibility in unexpected economic conditions.

The closing date for submissions in regards to the amending guidelines is 12 February 2016. The amendments are proposed to commence on 1 July 2016.

Download a pdf version of this article: Amendments to Private and Public Ancillary Fund Guidelines

For more information , please contact:

Daniel Smedley
Sladen Legal
+61 3 9611 0105


Meagan O'Connor
Sladen Legal
+61 3 9611 0106


Bonnie Temple
Sladen Legal
+61 3 9611 0134