The Australian Government has announced it will cut red tape for thousands of Australian charities, with financial reporting obligations to be eased.
The financial reporting thresholds will increase for small and medium charities:
- Financial reporting thresholds for small charities will increase to under $500,000 annual revenue.
- Financial reporting thresholds for medium‑sized charities will increase to under $3 million annual revenue.
The new thresholds will take effect for the 2021‑22 financial year onwards in the 2022 and later Annual Information Statements.
For the 2021‑22 financial year onwards, large charities with two or more key management personnel will be required to report remuneration paid to Responsible Persons, such as directors, and senior executives on an aggregated basis in their 2022 and later Annual Information Statements.
In addition, for the 2022-23 financial year onwards, all charities will be required to report related party transactions in their 2023 and later Annual Information Statements.
The ACNC will work with the charity sector to develop appropriate guidance and education resources to assist the sector to meet these new reporting requirements once the changes in law come into effect, expected to be later this year.
To view further detail from the ACNC, click here
To view the media release from the Hon Michael Sukkar MP, click here