Late last year, a number of amendments were made to charity regulations which impact on ACNC reporting obligations from this year. The changes relate to:
- charity size thresholds based on revenue;
- disclosure of remuneration for key management personnel, and
- disclosure of related party transactions.
The charity size thresholds have been amended, from the 2022 annual reporting period, as follows:
|Charity Size||Defined now as:||From 2022 Annual Information Statement reporting period, defined as:|
|Small||Revenue under $250,000||revenue under $500,000|
|Medium||Revenue of $250,000 or more, but under $1 million||revenue of $500,000 or more, but under $3 million|
|Large||Revenue of $1 million or more||revenue of $3 million or more|
Large charities are now required to disclose remuneration of key management personnel in special purpose financial reports. Key management personnel include senior managers, directors, CEO’s and board members. This change also takes effect from the 2022 reporting period.
For medium and large charities, from the 2023 reporting period, there are increased requirements to disclose related party transactions in special purpose financial statements.
ACNC will release guidance for charities on these changes. In the meantime, charities are encouraged to check with their accountants that they have appropriate systems and processes in place to comply with the changes.
Griffin Legal is here to help and can advise you on these changes and what they may mean for your charity.
In other charity news and highlighting the importance of ensuring compliance with ACNC requirements, ACNC has confirmed that in 2021 it revoked the registrations of 15 charities. These revocations followed ACNC compliance investigations, with the organisations found to have breached either the ACNC Act or the Governance Standards.
Our Griffin Legal not-for-profit specialists can help you navigate your ACNC compliance.