PAF (Private Ancillary Fund) governance + minimum distributions
PAFs must distribute minimum 5% of net assets annually + comply with PAF Guidelines.
Who must comply
Trustees of PAFs.
What triggers it
Operating a PAF.
When due
Annual minimum distribution + annual reporting.
Evidence required
Distribution records; investment strategy; auditor's report; PAF Annual Return.
Max penalty
Loss of PAF status; DGR endorsement consequences; tax recovery
Who must comply with this? The applicability test by industry, business structure and size.
Summary
Private Ancillary Fund Guidelines 2009 (Treasury) administered by ATO + ACNC. PAFs must distribute minimum 5% of net assets annually (4% public ancillary funds). Director responsibilities + investment strategy + audit requirements.
Enforced by
Industries
Entity types
Topics
Related
- CWLTHMake trustee resolutions for trust distributions by 30 JuneDiscretionary trust trustees must validly resolve to distribute trust income before the end of the FY.
- CWLTHComply with ACNC Governance StandardsSix governance standards covering NFP purpose, accountability, compliance, suitability, duties and PBI requirements.
- CWLTHLodge the ACNC Annual Information StatementRegistered charities must lodge the AIS within 6 months of the end of the reporting period.
- CWLTHMaintain DGR endorsementDeductible Gift Recipients must keep meeting the requirements of their DGR category for as long as they are endorsed.
- CWLTHComply with ACNC External Conduct Standards (overseas activity)Charities operating or sending funds overseas must comply with four External Conduct Standards.
- CWLTHMaintain Basic Religious Charity status (ACNC) — limited carve-outsBasic religious charities have limited ACNC governance carve-outs but still register.
Frequently asked questions
- Who must comply with PAF (Private Ancillary Fund) governance + minimum distributions?
- Trustees of PAFs.
- What triggers PAF (Private Ancillary Fund) governance + minimum distributions?
- Operating a PAF.
- When is PAF (Private Ancillary Fund) governance + minimum distributions due?
- Annual minimum distribution + annual reporting.
- What is the maximum penalty for PAF (Private Ancillary Fund) governance + minimum distributions?
- Loss of PAF status; DGR endorsement consequences; tax recovery
- What evidence is required for PAF (Private Ancillary Fund) governance + minimum distributions?
- Distribution records; investment strategy; auditor's report; PAF Annual Return.
Source: https://www.ato.gov.au/businesses-and-organisations/not-for-profit-organisations/getting-started/in-detail/types-of-dgrs. Rules Mate is not a law firm. Always verify against the live regulator source before acting.