On 15 December 2020, the Federal Treasurer announced that a new agreement signed by State and Territory Treasurers will see many charities granted relief from financial reporting requirements of the Australian Charities and Not-for-Profits Commission Act 2012. These changes were recommended by an independent review of the ACNC Legislation, Strengthening for Purpose: Australian Charities and Not-for-profits Commission Legislation Review 2018, to reduce the regulatory burden whilst retaining the transparency required to maintain public trust and confidence
Full details are yet to be released, however, a framework will be developed by mid-2021 to ease charities financial reporting requirements. New reporting requirements are expected to be:
|Tier||Threshold (3 yr ave. turnover)||Reporting|
|Small||< $1,000,000||No requirement to submit an annual report to ACNC|
|Medium||> $1,000,000 and < $5,000,000||Submit a financial report subject to an audit or review|
|Large||> $5,000 000||Submit an audited financial report|
HQB is committed providing proactive advice to our charity clients and will keep you updated once the full details are released.
– James Davis & Michelle Paull
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.