Newsflash! Whilstleblower Laws – a sigh of relief for small NFPs
Legal Practitioner Director
In our earlier article ‘Do the new Whistleblower Laws affect your NFP Organisation?’ we explored how the whistleblower reforms may impact your NFP. By way of reminder, all NFP organisations that are public companies limited by guarantee are required to implement a whistleblower policy as soon as possible but before 1 January 2020.
But there is good news!
If the annual turnover of your NFP organisation is less than $1 million, you are no longer required to have a whistleblower policy.
According to John Price, the Commissioner of ASIC:
‘We will provide relief to small not-for-profit or charitable companies from the whistleblower policy requirement because we understand that these entities may face a compliance burden that outweighs the benefits a policy might otherwise offer,’
As one might expect there is a catch: if an NFP’s turnover exceeds $1million in a financial year, the NFP must have a whistleblower policy even if their turnover drops below the threshold in the following year.
Please note that from 1 July 2019, all NFP organisations that are public companies limited by guarantee, regardless of turnover, will need to comply with the protections afforded by the new whistleblower laws but only those with a turnover of $1million or more have to implement a whistleblower policy.
If your NFP’s annual turnover is close to or could potentially exceed the annual $1 million turnover threshold, we recommend as a matter of good corporate governance, that you consider adopting a whistleblower policy to ensure the protections in the legislation are observed.
If you have any questions or wish to seek legal advice on how these whistleblower reforms may impact your NFP, please contact us.
Reliance on content the material distributed is general information only. The information supplied is not and is not intended to be, legal or other professional advice, nor should it be relied upon as such. You should seek legal or professional advice in relation to your specific situation.