In a joint submission CA ANZ and CPA Australia have supported draft Treasury amendments to the ACNC Regulations that will increase the reporting thresholds applicable to ACNC registered entities and improve the reporting of related party transactions. The changes implement recommendations 12, 14 and 15 of the ACNC legislative review, which CA ANZ and CPA Australia also supported in earlier submissions.
Once enacted, the amendments would double the ACNC’s ‘small’ charity reporting threshold to $500,00 (from its existing $250,000) and triple the ‘large’ charity reporting threshold to $3 million (from its existing $1 million) for the 2022 year-end. This is expected to provide substantial reporting relief to many charities that meet the new definitions of ‘medium’ and ‘small’.
The draft regulations also propose to require disclosure of related party information for all charities over the next 2 years, particularly for those large and medium charities whose financial statements currently do not comply with AASB 124 Related Parties. We have supported these reforms in principle called for the application of the simplified related party disclosure in AASB 1060 rather than the full requirement of AASB 124, and for the inclusion of transitional provisions that will ensure the reforms are not effectively backdated into the current reporting period, on a cost/ benefit basis.