Transitional relief for streamlined reporting

One of the ways that the ACNC reduces red tape across the sector is by working with state and territory regulators to allow charities to directly report to us through streamlined reporting arrangements.

When a streamlined reporting arrangement is established between the ACNC and another regulator, we provide charities subject to the arrangement with two years of transitional reporting relief.

Transitional reporting relief helps charities whose financial reports do not currently meet the ACNC requirements. As part of a transitional reporting relief arrangement, charities are not required to fulfil all ACNC financial reporting requirements for the first two years after a streamlined reporting arrangement takes effect.

How transitional reporting relief works

This summary outlines the transitional reporting relief provided during the first two years of a streamlined reporting arrangement. These requirements apply to medium and large charities, which are required to submit an annual financial report to the ACNC.

First year of transitional reporting relief

Charities can submit the same financial report that has met the requirements of the relevant state or territory regulator in previous years.

Second year of transitional reporting relief

The financial report must meet the ACNC’s requirements, except that charities are not required to:

• provide comparative information (where comparative figures have not been included, a disclosure note must be provided in the financial report to explain why)
• meet the ACNC’s auditor requirements, provided that they meet the auditor requirements for the state or territory regulator.

Charities must also ensure that they provide a signed Responsible People’s declaration and the auditor or reviewer must provide an opinion/conclusion on whether the financial report has been prepared in accordance with Division 60 of the ACNC Act.

The conclusion of transitional reporting relief

Once the two-year transitional reporting relief period concludes, medium and large charities must ensure their financial reports are prepared in accordance with the ACNC's reporting requirements complying with the Australian Accounting Standards that provide a true and fair view, including:

• reporting on an accrual basis
• ensuring that financial statements include the required comparative figures.

Large charities must have their accounts audited by either a registered company auditor, an audit firm, or an authorised audit company.

Medium charities must have their financial report reviewed or audited.

Read our guidance about reviewing and auditing financial reports for more information.