New financial reporting reforms for charities

The Assistant Treasurer today announced new financial reporting reforms for charities registered with the ACNC.

In summary, the reforms announced are:

• A lifting of the financial reporting tier annual revenue thresholds for small charities from under $250,000 to under $500,000 and medium charities from under $1 million to under $3 million from the 2021-22 financial year onwards;
• Large charities with two or more key management personnel will be required to report remuneration paid to those personnel on an aggregated basis in their Annual Information Statement from the 2021-22 financial year onwards;
• All charities will be required to report related party transactions in their annual reporting to the ACNC from the 2022-23 financial year onwards.

Further details are available in the minister’s press release and the ACNC will publish additional information and guidance soon.
https://ministers.treasury.gov.au/ministers/michael-sukkar-2019/media-releases/cutting-red-tape-charities

Please contact the TNR team if you have any queries relating to the new financial reporting reforms for charities.