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
Less than $250,000
Less than $500,000
Must complete only an AIS online
$250,000 - $999,999
$500,000 - $2,999,999
Financial report can be either reviewed or audited
$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.