A number of significant changes are imminent for charities registered with the Australian Charities and Not-for-profits Commission.
1. New Reporting Thresholds – from 30 June 2022 financial year
| Size | Current Threshold | New Threshold (from 30 June 2022) |
Financial Statements required | Audit or Review required |
| Small | Revenue less than $250,000 | Revenue less than $500,000 | No | No |
| Medium | Revenue between $250,000 and $1m | Revenue between $500,000 and $3m | Yes | Review or Audit |
| Large | Revenue over $1m | Revenue over $3m | Yes | Audit |
There is further information from the ACNC here
2. Disclosure of Key Management Personnel Remuneration – from 30 June 2022 financial year
If a medium charity prepares general purpose financial statements, key management personnel remuneration will need to be disclosed.
If a medium charity prepare special purpose financial statements, the disclosure of key management personnel remuneration will be optional.
A large charity must report key management personnel remuneration.
There is further information and guidance from the ACNC here
3. Disclosure of Related Party Transactions – from 30 June 2023 financial year
Disclosure of material related party transactions and balances in accordance with AASB 124 (Related Party Disclosures) will become mandatory for all medium and large charities preparing special purpose financial statements for reporting years ended 30 June 2023 and later. Medium and large charities preparing general purpose financial statements will already be including this information. Given the record keeping required, it is important to start thinking now, about what these disclosures will entail and how the required information should be obtained.
There is further information and guidance from the ACNC here