Mon 20.9.2021, Treasury released exposure draft Australian Charities and Not-for-profits Commission Amendment (2021 Measures No 3) Regulations 2021. The Draft Regulations propose changes to the Australian Charities and Not-for-profits Commission Act 2012 (the Act) to:

  • increase the annual revenue thresholds used for determining whether a registered entity is a small-registered entity (less than $0.5m), a medium registered entity (between $0.5m and $3.0m) or a large-registered entity ($3.0m or more);
  • require medium and large-registered entities with the Australian Charities and Not-for-profits Commission (ACNC), other than basic religious charities, to include certain related party disclosures in their special purpose annual financial reports in accordance with AASB 124Related Party Disclosures; and
  • exempt medium-registered charities, and large charities with only one remunerated key management person, from the requirement to disclose, as part of their related party transactions, aggregate remuneration paid to responsible persons and senior executives.

PROPOSED DATE OF EFFECT:

Financial reports required for the 2021-22 financial year – (i) the disclosure of compensation to key management personnel provided by the accounting standard AASB 124, Related Party Disclosures; and (ii) revenue thresholds for determining small, medium and large-registered entities takes effect.

Financial reports required for the 2022-23 financial year – any other matters provided by the accounting standard AASB 124, Related Party Disclosures that does not relate to the disclosure of compensation to key management personnel.

SUBMISSIONS are due by 8 October 2021. [LTN 181, 20/9/21]

[Tax Month – September 2021] 20.9.21

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