Principals' Incorporation Updates


At the Leaders' Forum on 29 July 2019, the Most Reverend Donald Sproxton, Auxiliary Bishop of Perth, announced the decision by the Bishops of Western Australia to incorporate Catholic education in Western Australia.

Over the last two months there has been significant progress as we work towards commencement on 1 January 2020.

Following meetings and consultation with key stakeholders, including the Australian Tax Office (ATO), please find below an update on how incorporation impacts your school.

The website will continue to be updated with relevant information, for school leaders, related to the change in governance structure as this becomes available.



Where are we now?


Registrations

  1. Catholic Education Western Australia Limited (CEWA Ltd) is a company Limited by Guarantee registered with the Australian Securities and Investments Commission.
    • The shareholders (members) of CEWA Ltd are the four Diocesan Bishops.
  2. CEWA Ltd is a registered Charity with the Australian Charities and Not-for-profits Commission (ACNC) and has been endorsed by the ATO with Charity Tax Concessions.
  3. State System Agreement Governing Body – The process to register CEWA Ltd as the State Governing Body has commenced.
  4. Federal Approved Authority – The process to register CEWA Ltd as the Federal Approved Authority has commenced.

Employment

  1. All office and Diocesan staff will be employed by CEWA Ltd from 1 January 2020. Every staff member will receive a letter explaining how this will occur.
  2. CEWA Ltd will delegate authority to Principals to employ and manage school staff.
  3. The industrial relations jurisdiction will transfer from the WA State Industrial Relations Commission to the Fairwork, Federal jurisdiction.

School governance

  1. The School Board Constitution is under review with changes expected to be made clarifying its role.
  2. Schools will be provided with a Delegations of Authority document from CECWA detailing delegations from 1 January 2020.
  3. Updated CECWA Policies are due to be introduced in 2021.
  4. The Bishops Indemnity is being replaced by Directors and Officers Liability Insurance from 1 January 2020.
  5. The System Membership Agreement for Order Schools is currently under review.

Financials

  1. Schools are still responsible for the preparation and financial management of the annual school budget and strategic maintenance and finance plans.
  2. The 2019 financial reporting and audit process (including FQ and ACNC) will be the same as in previous years.
  3. Schools retain their existing ABN and will continue to lodge their BAS with the ATO. Payable and receivable invoice details will remain unchanged.
  4. CDF banking arrangements will not be impacted.
  5. The 2020 (and subsequent years) financial reporting and audit processes (including FQ and ACNC) will be impacted by the need for CEWA Ltd to prepare consolidated system financial statements. Further details will be provided during 2020.
  6. Schools will be required to prepare a Fringe Benefits Tax (FBT) return for the nine months ending 31 December 2019 (as part of their end of year financial reporting process). CEWA Ltd will prepare a single FBT return for office and Diocesan schools from 1 January 2020 and subsequent years. Further details will be provided in due course.
  7. School Building /Other Funds with Deductible Gift Recipient (DGR) endorsement will be realigned to the CEWA Ltd ABN. Fund operations at school level will not be affected, as long as they comply with existing ATO DGR requirements.



What to expect next?


Impact on schools

  1. The assets and liabilities of all CECWA entities and 147 Diocesan schools will be transferred from the Bishops to CEWA Ltd on 1 January 2020.
  2. Land titles will remain with Diocesan Bishops, as is currently the case.
  3. Employment contracts for all office and Diocesan school staff will be transferred to CEWA Ltd on 1 January 2020.
  4. A school contract audit process will be conducted in October and November 2019. Details will be sent directly to school Principals.
  5. Schools will need to notify all parents of the change to CEWA Ltd, prior to the end of 2019. Templated correspondence will be provided for this purpose.




At the Leaders' Forum on 29 July 2019, the Most Reverend Donald Sproxton, Auxiliary Bishop of Perth, announced the decision by the Bishops of Western Australia to incorporate Catholic education in Western Australia.

Over the last two months there has been significant progress as we work towards commencement on 1 January 2020.

Following meetings and consultation with key stakeholders, including the Australian Tax Office (ATO), please find below an update on how incorporation impacts your school.

The website will continue to be updated with relevant information, for school leaders, related to the change in governance structure as this becomes available.



Where are we now?


Registrations

  1. Catholic Education Western Australia Limited (CEWA Ltd) is a company Limited by Guarantee registered with the Australian Securities and Investments Commission.
    • The shareholders (members) of CEWA Ltd are the four Diocesan Bishops.
  2. CEWA Ltd is a registered Charity with the Australian Charities and Not-for-profits Commission (ACNC) and has been endorsed by the ATO with Charity Tax Concessions.
  3. State System Agreement Governing Body – The process to register CEWA Ltd as the State Governing Body has commenced.
  4. Federal Approved Authority – The process to register CEWA Ltd as the Federal Approved Authority has commenced.

Employment

  1. All office and Diocesan staff will be employed by CEWA Ltd from 1 January 2020. Every staff member will receive a letter explaining how this will occur.
  2. CEWA Ltd will delegate authority to Principals to employ and manage school staff.
  3. The industrial relations jurisdiction will transfer from the WA State Industrial Relations Commission to the Fairwork, Federal jurisdiction.

School governance

  1. The School Board Constitution is under review with changes expected to be made clarifying its role.
  2. Schools will be provided with a Delegations of Authority document from CECWA detailing delegations from 1 January 2020.
  3. Updated CECWA Policies are due to be introduced in 2021.
  4. The Bishops Indemnity is being replaced by Directors and Officers Liability Insurance from 1 January 2020.
  5. The System Membership Agreement for Order Schools is currently under review.

Financials

  1. Schools are still responsible for the preparation and financial management of the annual school budget and strategic maintenance and finance plans.
  2. The 2019 financial reporting and audit process (including FQ and ACNC) will be the same as in previous years.
  3. Schools retain their existing ABN and will continue to lodge their BAS with the ATO. Payable and receivable invoice details will remain unchanged.
  4. CDF banking arrangements will not be impacted.
  5. The 2020 (and subsequent years) financial reporting and audit processes (including FQ and ACNC) will be impacted by the need for CEWA Ltd to prepare consolidated system financial statements. Further details will be provided during 2020.
  6. Schools will be required to prepare a Fringe Benefits Tax (FBT) return for the nine months ending 31 December 2019 (as part of their end of year financial reporting process). CEWA Ltd will prepare a single FBT return for office and Diocesan schools from 1 January 2020 and subsequent years. Further details will be provided in due course.
  7. School Building /Other Funds with Deductible Gift Recipient (DGR) endorsement will be realigned to the CEWA Ltd ABN. Fund operations at school level will not be affected, as long as they comply with existing ATO DGR requirements.



What to expect next?


Impact on schools

  1. The assets and liabilities of all CECWA entities and 147 Diocesan schools will be transferred from the Bishops to CEWA Ltd on 1 January 2020.
  2. Land titles will remain with Diocesan Bishops, as is currently the case.
  3. Employment contracts for all office and Diocesan school staff will be transferred to CEWA Ltd on 1 January 2020.
  4. A school contract audit process will be conducted in October and November 2019. Details will be sent directly to school Principals.
  5. Schools will need to notify all parents of the change to CEWA Ltd, prior to the end of 2019. Templated correspondence will be provided for this purpose.