ACNC recent changes to reporting
Charities and certain NFP’s must report to the Australian Charities and Not for Profit Commission – ACNC.
Charities and NFP’s must submit annual information statements to the ACNC.
Changes to charity size thresholds from the 2022 Annual Information Statement and beyond.
The details below outlines these thresholds.
Annual revenue thresholds
Audit requirement
from 2022 and beyond
Charity size small Less than $500,000
Only have to complete their Annual Information Statement online
Charity size medium $500,000 to $2,999,999
The financial report can be either reviewed or audited
Charity size large $ 3 million or more, the financial report must be audited
Changes In Reporting To The ACNC
Key Management Personnel
The changes take effect from 1st July 2022. The change affects only large-sized charities.
Some organisations have key management personnel (KMP) but they're not remunerated, so this change will not apply to them, but for those charities that are large in size (that is annual revenue of $3 million or more) who remunerate key management personnel (that is Responsible People or senior executives), if they are remunerated, they will need to provide information about the total amount that has been paid for key management personnel.
KMP services could be provided to a charity by a separate management entity. KMP remuneration therefore includes amounts incurred for KMP services provided by such a separate management entity.
Related Party transactions
Charities that prepare general purpose financial statements (GPFS) are required to include the related party disclosures under either AASB 124 Related Parties (Tier 1 entities) or AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (Tier 2 entities).
Charities currently preparing special purpose financial statements under the ACNC Act are not required to disclose transactions with related parties as they only have to comply with accounting standards AASB 101, AASB 107, AASB 108, AASB 1048, AASB 1054
If you require any further information, please contact us on hello@ethicalmatters.com.au or 1300 167 802.
