- The Australian Government has responded to the report and recommendations from the ACNC Legislative Review Panel
- The Government agrees with the recommendations to increase charity reporting thresholds, as well as simplify reporting for smaller charities
- The Government also supports the recommendation for larger charities to report related party information
The Australian Government has supported 18 of the 30 recommendations made by the ACNC Legislative Review carried out in 2018.
The Government supported a number of the recommendations made by the review panel in relation to reporting and assurance for registered charities, including:
- An increase in the reporting thresholds. The Government is consulting State and Territory regulators on the appropriate level of revenue thresholds.
- Simplifying the minimum reporting requirements for small charities. Allowing those using cash accounting to provide a simplified balance sheet or statement of resources.
- A requirement to disclose related-party transactions. The disclosures will be simplified for small charities.
- A requirement to disclose remuneration to responsible persons and senior executives on an aggregated basis. This will be required only for large charities with two or more key management personnel to accommodate privacy concerns.
Basic religious charities are exempt from having to answer financial questions in the annual information statement (AIS), submitting financial reports and having to comply with governance standards.
In our submission, we recommended that the panel considered whether such exemptions were warranted and to what degree. The panel also recommended a review of the exemptions for basic religious charities. However, the Government did not support this recommendation and does not plan to review these exemptions.
The ACNC will now work with the Government to implement the recommendations in all the areas covered by the report. CA ANZ will continue to advocate to get the best outcomes for our members and the public as the ACNC and Government progress the changes.
On 6 March 2020, Senator the Hon Zed Seselja released the Government’s response.Government response
The final report of the review, Strengthening for Purpose, was tabled in Parliament on 22 August 2018Final report