LATEST ACCOUNTING NEWS
Small businesses may ‘collapse under strain of payday super’, IPA warns
ATO’s hands tied with scrapping on-hold debts, expert says
What Drives Your Business Growth and Profits?
Australian Taxation Office (ATO) shifting to firmer debt collection activity
Why employee v contractor comes down to fine print
Sharing economy reporting regime for platform operators
Countries producing the most solar power by gigawatt hours
Illegal access nets $637 million
Accessing superannuation benefits.
Does your business have a company Power of Attorney?
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
GrantConnect
2 in 3 SMEs benefit from instant asset write-off, survey reveals
Updated guidance on R&D claims
Do you know how to recover debts?
Wheat Production by Country
Types of small business benchmarks
What is a Commercial Lease?
ATO warns advisers against suspect R&D tax claims
The year of workplace law upheaval
How to Resolve Invoice Payment Disputes
Raft of revenue tweaks in MYEFO to raise millions
The Countries that Export the Most Wine in the World
Record low invoice values ‘reveal inflation sting’
A 2023 Advent Calendar for our clients
Average refund plummets by $580, total payout down $5.4bn
FBT – Christmas Parties and Taxi Fare/Rideshare
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Treasury consults on increase to charities financial reporting threshold

The revenue thresholds defining small, medium and large charities are set to be raised, saving over 5,000 charities the need to produce reviewed or audited financial statements.



Treasury is now consulting on exposure draft legislation that the government hopes will reduce red tape, and increase transparency of, the charity sector.


Among the changes is an increase to the revenue thresholds for charities, with small charities to be defined as those with an annual revenue below $500,000, up from the current $250,000 threshold.


Medium-sized charities, currently defined as those with revenues between $250,000 and $1 million, will now see the threshold raised to $500,000 to less than $3 million.


Likewise, large charities will be defined as those with revenues of $3 million or more.


The higher annual revenue thresholds will have a direct impact on a charity’s annual reporting obligations, with approximately 2,500 small charities no longer being required to produce annual financial reports, saving each charity around $2,400 in accounting fees annually.


Over 2,700 medium-sized charities will also no longer be required to produce audited financial statements, saving them around $3,000 in accounting expenses annually.


The proposed thresholds, however, remain lower than those recommended by the ACNC’s 2018 review. It had called for the thresholds to be increased to less than $1 million for a small entity, from $1 million to less than $5 million for a medium entity, and $5 million or more for a large entity.


Other changes proposed in the exposure draft legislation include a requirement for all registered charities to disclose related party transactions, with small registered charities to make a simplified disclosure involving a brief description of related party transactions.


According to Treasury, the change will provide greater transparency and accountability, particularly around “transactions that pose a higher risk to charitable assets being used for private benefit”.


The regulations will provide an exemption to medium 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.


 


 


Jotham Lian
22 September 2021


www.accountantsdaily.com.au




24th-October-2021
 
CPA logo Peter I Price & Associates Pty Ltd
Phone: (07) 3376 3411| Email: info@peterprice.com.au
15 Loffs Road, Mt Ommaney QLD 4074
Liability limited by a scheme approved under Professional Standards Legislation.