Governance Briefing — September 17, 2021
Australia introduced Governance Standard 6 for registered charities, requiring documented accountability systems to maintain public trust and manage serious wrongdoing risks.
Executive briefing: On 17 September 2021 the Australian Government registered the Australian Charities and Not-for-profits Commission Amendment (Governance) Regulations 2021. The instrument introduces Governance Standard 6, obliging charities to take reasonable steps to ensure their responsible persons are accountable and to manage risks of fraud and misuse.
Key governance signals
- Accountability systems. Registered charities must maintain policies and procedures that hold responsible persons to account, document duties, and enable removal for serious misconduct.
- Serious wrongdoing controls. Boards need controls to detect and address fraud, negligence, or breaches of duty, including whistleblowing channels and escalation paths.
- Reporting alignment. Governance Standard 6 applies in addition to existing ACNC reporting tiers, reinforcing expectations for transparent annual reporting and recordkeeping.
Action checklist
- Update governance manuals to incorporate accountability provisions, disciplinary processes, and performance review cycles for responsible persons.
- Conduct fraud risk assessments and implement controls covering segregation of duties, financial monitoring, and whistleblower protections.
- Train boards and senior management on Governance Standard 6 obligations and evidence expectations for ACNC compliance reviews.
Sources
- Australian Charities and Not-for-profits Commission Amendment (Governance) Regulations 2021
- ACNC guidance on Governance Standard 6
Zeph Tech supports Australian charities with accountability frameworks, board training, and control testing programs aligned to ACNC Governance Standard 6.