Charity threshold change
Thresholds for determining a charity’s size are changing, and thousands of charities will see their reporting obligations reduced.
About 2500 charities will no longer be required to produce financial reports; only an annual information statement will be needed. About 2700 charities will be allowed to have their financial report reviewed instead of audited.
When charities complete their 2022 annual statements – which, for many, will cover a reporting period between 1 July 2021 and 30 June – the thresholds will change.
The table below compares old and new revenue thresholds for small, medium, and large charities.
| Size of charity |
Current revenue thresholds for the 2021 AIS |
Revenue thresholds from 1 July 2022 |
Audit/review requirement |
| Small |
Less than $250,000 |
Less than $500,000 |
Must complete only an AIS online |
| Medium |
$250,000 - $999,999 |
$500,000 - $2,999,999 |
Financial report can be either reviewed or audited |
| Large |
$1 million or more |
$3 million or more |
Financial report must be audited |
While thresholds have changed, the following should also be considered:
- Check governing documents to see if an audit is required. If an audit is required, then the changes to thresholds have no effect unless governance documents are amended,
- If a review has become an option, consider whether this lower level of assurance provided by your auditor meets your needs and those of report users, and
- If a review is no longer required, consider how the lack of any firm assurance will affect your compliance obligations with governance standards and relationships with external stakeholders.