New annual revenue thresholds for ACNC-registered charities from 1 July 2022
18 August 2021
A charity's financial reporting obligations to the Australian Charities and Not-for-profits Commission (ACNC) will change from 1 July 2022. There will be three key changes to reporting requirements.
1. Changes to reporting thresholds
A charity's financial reporting obligations to the ACNC depend on whether it is considered a small, medium or large charity. While all charities are required to lodge an Annual Information Statement with the ACNC, medium and large charities also have to lodge an annual financial report.
In an effort to alleviate the reporting burdens of many charities, the ACNC financial reporting thresholds for each charity category will increase from the 2021-22 financial year. As a result of these changes, many charities will be re-classified as ‘small’ and only have to submit an Annual Information Statement.
From 1 July 2022 (reporting for the 2021-22 financial year), the ACNC financial reporting thresholds for charities will increase as follows:
- small charities will increase (from under $250,000) to under $500,000 annual revenue
- medium sized charities will increase (from $250,000 or more but under $1 million) to $500,000 or more but under $3 million annual revenue
- large charities will increase (from $1 million or more) to $3 million or more
2. Changes to reporting for large charities
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 Statement.
3. Changes to reporting for all charities
From 1 July 2023 (reporting for the 2022-23 financial year), all charities will be required to report related party transactions in their annual reporting to the ACNC. This measure is intended to increase the transparency of transactions between charities and related people or organisations.
How can my organisation prepare for the changes?
The ACNC has advised it will work with the charity sector to develop guidance and education resources to help the sector transition to these new reporting requirements.