Federal and state governments have agreed to reduce red tape for more than 5000 small and medium-sized charities, in a deal announced in December.
Federal, state and territory treasurers have agreed that by mid-2021 they’ll have a “framework” to raise reporting thresholds, with 3000 groups no longer required to produce reviewed financial statements, while another 2000 groups won’t have to lodge audited financial statements.
The measures will save groups thousands of dollars in administration costs and were recommended in a 2018 review of Australian Charities and Not-for-profits Commission laws.
The joint agreement also formalises a “cross-border recognition model” to “harmonise” fundraising laws.
Mr Frydenberg said in a statement that “inconsistent and outdated regulations across jurisdictions create an estimated regulatory burden of $13.3 million a year for the charitable fundraising sector”.
“The reforms will simplify financial reporting requirements and maintain transparency to ensure charities can dedicate more of their time and resources to assist vulnerable communities,” Mr Frydeberg said.
To view the joint media release from the Hon Josh Frydenberg MP and Senator the Hon Zed Seselja in full, click here.