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Proposed Changes to Financial Reporting Thresholds For Registered Charities

Jonathan Teh, Jaqueline Wilson and Tessa Leounakis

Treasury is consulting on changing financial reporting thresholds for charities registered with the Australian Charities and Not-for-profits Commission (ACNC).

Current reporting thresholds for charities

Presently, small charities (revenue up to $249,999) are generally not required to have their financial reports audited nor reviewed. Medium charities (revenue of $250,000 to $999,999) must have their financial reports reviewed or audited. Large charities ($1 million or more revenue) must have their financial reports audited.

Proposed changes to reporting thresholds for charities

Treasury proposes to reduce the financial reporting burden. The revenue threshold for small charities will be up to $499,999. Medium charities will be from $500,000 to under $3 million and large charities will be $3 million or more.

Audit or review requirements

Current revenue

Proposed revenue thresholds


Generally no


$0 to $499,999


Review or Audit


$500,000 to under $3 million



$1 million or more

$3 million or more


Potential benefits for charities under the proposed changes

The proposed changes in financial reporting thresholds hold potential regulatory and economic benefits for many registered charities. If adopted, Treasury forecasts that;

• about 3,300 charities would move from the medium category to the small category, and therefore no longer be required to submit reviewed financial reports; and
• about 3,500 charities would move from the large category to the medium category, and therefore no longer be required to submit audited financial reports.

The proposed changes will allow these charities to utilise maximum resources to fulfil their charitable purposes. This support is especially important presently as the level of donations to charities has decreased during the COVID-19 pandemic while the demand for the services have increased.

Consultation on the framework

The consultation period closes on 21 March 2021. The consultation questions are set out in the consultation paper and feedback from stakeholders may take the form of a written lodgement or via a short survey.

How we can help

Russell Kennedy is well placed to assist registered charities manage their obligations with respect to their registration and regulation under the Australian Charities and Not-for-profits Commission Act 2012.

If you require further information, please contact Solomon MillerJonathan Teh or Jaqueline Wilson of our Corporate and Commercial Advisory team.

If you would like to keep up to date with Alerts, Insights and upcoming events, you can subscribe to our mailing list here.

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