9 February 2022
by Travas Burns & Karli Connors
- Related topics
- Accounting Standards & Assurance
Changes to charity reporting thresholds approved by the Council on Federal Financial Relations are effective soon.
From 1 July 2022, small charities registered with the Australian Charities and Not‑for‑profits Commission (ACNC) will see their financial reporting annual revenue threshold increased from $250,000 to $500,000.
Changes also due for medium sized charities with the financial reporting threshold being lifted to a range of $500,000 to $3 million.
The changes, approved by the Council on Federal Financial Relations, will mean nearly 2,500 small charities will no longer be required to produce reviewed financial statements, however directors are advised to consider whether an audit or review is still required under the charity’s constitution.
Proposed thresholds for financial reporting for ACNC-registered charities
|Charity Size||Proposed annual revenue threshold||Minimum ACNC Reporting requirements|
|Small||less than $500,000||Annual Information Statement|
|Medium||$500,000 or more and less than
|Annual Information Statement and reviewed financial report|
|Large||$3 million or more||Annual Information Statement and audited financial report|
In addition, from 1 July 2023, all charities will be required to report related-party transactions in their annual reporting to the ACNC.
This will increase transparency of transactions with organisations that pose a risk of conflicts of interest.
Please feel free to contact your ESV engagement partner should you have any questions regarding the above changes.