Who must comply with PAF (Private Ancillary Fund) governance + minimum distributions?
The applicability test for PAF (Private Ancillary Fund) governance + minimum distributions (ATO and ACNC), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Only if
Applies only if you are the trustee of a private ancillary fund. Whether it applies turns on a fact that no industry, structure or size settles on its own.
What the obligation is
PAFs must distribute minimum 5% of net assets annually + comply with PAF Guidelines.
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.
The applicability test
Applies only if you are the trustee of a private ancillary fund. Whether it applies turns on a fact that no industry, structure or size settles on its own.
How the regulator frames it: Trustees of PAFs.
What triggers it: Operating a PAF.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (35 of 35: only if a further fact applies).
The answer is the same in every industry: only if a further fact applies. Industry does not change who must comply.
Business structure and size
| Structure | Answer across all industries, any size | Engine's reason (real estate agents, 6–19 employees) |
|---|---|---|
| Sole trader | No | Requires a trigger outside this questionnaire |
| Partnership | No | Requires a trigger outside this questionnaire |
| Trust | No | Requires a trigger outside this questionnaire |
| Pty Ltd company | No | Requires a trigger outside this questionnaire |
| Public company | No | Requires a trigger outside this questionnaire |
| Not-for-profit (unregistered) | No | Requires a trigger outside this questionnaire |
| Registered charity | Only if a further fact applies | Only if you are the trustee of a private ancillary fund |
| Super fund | No | Requires a trigger outside this questionnaire |
| Foreign company | No | Requires a trigger outside this questionnaire |
Size does not change the answer across all industries: at every size band the answer is "only if a further fact applies".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires a trigger outside this questionnaire.
- Registered charity in real estate agents with 6–19 employees, turnover $1M–$3M: check whether it applies. applies only if you are the trustee of a private ancillary fund.
When you need to check further
The engine shows this obligation as "check whether this applies" when a business has ACNC registration. It then applies only if you are the trustee of a private ancillary fund. That fact is not something Rules Mate can infer from industry, structure or size.
What you must do, and when
- When due
- Annual minimum distribution + annual reporting.
- Frequency
- Annual
- Evidence to keep
- Distribution records; investment strategy; auditor's report; PAF Annual Return.
- Status
- Current
- Priority
- Critical
Penalty for not complying
Maximum penalty: Loss of PAF status; DGR endorsement consequences; tax recovery.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Where it sits in the corpus
Rules Mate tracks 9 published obligations tagged "charities", 3 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated critical priority, and is a annual obligation.
Regulator, legislation and tools
Regulated by Australian Taxation Office and Australian Charities and Not-for-profits Commission.
ATO: Federal tax administrator covering income tax, GST, PAYG, FBT, superannuation guarantee, STP, and self-managed super funds. Also administers the Director ID regime via ABRS.
ACNC: Federal charity regulator. Registers charities, administers governance and external conduct standards, and publishes the Charity Register.
Free tools that help with this obligation:
Questions
- Who must comply with PAF (Private Ancillary Fund) governance + minimum distributions?
- Applies only if you are the trustee of a private ancillary fund. Whether it applies turns on a fact that no industry, structure or size settles on its own.
- Does PAF (Private Ancillary Fund) governance + minimum distributions apply to sole traders?
- No. Across every industry and every size band, the engine's answer for a sole trader is: no.
- Does PAF (Private Ancillary Fund) governance + minimum distributions apply to businesses with 1–5 employees?
- Only if a further fact applies (1–5 employees, turnover $100K–$1M).
- When is "PAF (Private Ancillary Fund) governance + minimum distributions" due?
- Annual minimum distribution + annual reporting.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.