Introduction
Meeting annual reporting requirements is a fundamental obligation for every registered charity under the Australian Charities and Not-for-profits Commission (ACNC). This key responsibility involves submitting an Annual Information Statement (AIS) each year, while medium and large charities must also provide an annual financial report to ensure transparency and accountability.
Managing the submission process and meeting strict deadlines can be a significant challenge for many organisations. This guide provides practical, straightforward tips to help your charity understand its obligations, prepare the necessary documents, and make submitting an annual report to the ACNC a manageable task.
Understanding Your Charity’s ACNC Reporting Deadlines
Determining Your Reporting Period & Due Date
A charity’s due date for submitting an AIS and, if applicable, an annual financial report, is determined by its reporting period. The ACNC requires these documents to be submitted within six months of the end of your charity’s financial year.
Understanding your specific reporting period is the first critical step in meeting your obligations. The two most common reporting periods and their corresponding due dates are:
| Reporting Period | Submission Due Date |
|---|---|
| Standard financial year (1 July to 30 June) | 31 December |
| Calendar year (1 January to 31 December) | 30 June |
While the standard ACNC reporting period follows the financial year from 1 July to 30 June, your charity may operate on a different 12-month cycle. In such cases, you must apply to the ACNC for a ‘substituted accounting period’ through the ACNC Charity Portal.
Once this alternative period is approved, you do not need to reapply each year. Your due date will simply be six months after your approved period ends.
Special Reporting Rules for Newly Registered Charities
Newly registered charities face unique reporting requirements, especially if their registration occurs close to the end of their reporting period. If your charity is registered with the ACNC within three months of its reporting period’s end date, you have two flexible options for your first AIS:
| Reporting Option | Description |
|---|---|
| Report for the short period | Submit an AIS covering only the brief time from the registration date to the end of the current reporting period (three months or less). |
| Submit a combined report later | Wait until the next reporting cycle and submit a single AIS covering a longer period of 12 to 15 months. |
For example, imagine a charity with a 30 June year-end is registered on 5 April. It can either:
- Submit a 2022 AIS for the period of 5 April to 30 June 2022, or
- Wait and submit a 2023 AIS covering the entire period from 5 April 2022 to 30 June 2023.
This flexibility helps new organisations effectively manage their initial compliance duties.
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Key ACNC Reporting Requirements for Your Charity
Submitting Your Annual Information Statement
All registered charities are required to submit an AIS to the ACNC for each reporting period. The AIS is an online form that collects information about your charity’s operations, activities, and basic finances over a 12-month period. This submission is a key obligation under the Australian Charities and Not-for-profits Commission Act 2012 (Cth).
The information provided in the AISs serves several important purposes:
| Purpose of the AIS | Detail |
|---|---|
| Promote transparency & accountability | Makes key details about your charity available to the public on the ACNC Charity Register. |
| Understand sector trends | The ACNC uses the collected data to identify and analyse trends across the charity sector. |
| Reduce regulatory burden | Helps to streamline reporting processes and minimise duplication. |
| Share information with government | Allows the ACNC to share information with other government agencies to simplify reporting. |
Preparing an Annual Financial Report for Medium & Large Charities
In addition to the AIS, medium and large charities have further reporting requirements. These charities must prepare and submit an annual financial report to the ACNC. While small charities can optionally submit a financial report, it is mandatory for larger organisations to ensure greater financial transparency.
An annual financial report must comply with Australian Accounting Standards and provide a true and fair view of the charity’s financial position and performance. For medium and large charities, the report must include several key components:
| Required Component | Description |
|---|---|
| Statement of profit or loss and other comprehensive income | Summarises the charity’s financial performance over the reporting period. |
| Statement of financial position | Provides a snapshot of the charity’s assets and liabilities at the end of the period. |
| Statement of changes in equity | Details the changes in the charity’s equity from the beginning to the end of the period. |
| Statement of cash flows | Shows how cash has moved in and out of the charity via operating, investing, and financing activities. |
| Notes to the financial statements | Provide additional detail and context for the information presented in the financial statements. |
| Responsible People’s declaration | A signed and dated statement from the charity’s leaders confirming the accuracy of the financial statements. |
| Auditor’s or reviewer’s report | A signed and dated report from an auditor (required for large charities) or a reviewer/auditor (for medium charities). |
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Practical Tips for Submitting Your Annual Report on Time
Using the ACNC Charity Portal & Official Checklists
To streamline the submission of your AIS, use the ACNC Charity Portal:
- Log in to the portal.
- Select your charity.
- Navigate to “Manage reporting” to begin the process.
Preparation is crucial to meeting reporting requirements without last-minute complications. To this end, the ACNC offers official checklists designed to ensure both the AIS and the annual financial report are complete and accurate.
Key resources include:
| ACNC Resource | Purpose and Content |
|---|---|
| The Annual Information Statement Hub | Provides a checklist of information needed to complete your AIS, helping you prepare in advance. |
| The Annual Information Statement Guide | Offers detailed, question-by-question support to clarify what is required in each section of the form. |
| The Annual Financial Report Checklist | Covers key issues to consider when preparing the annual financial report for medium and large charities. |
Group Reporting & Bulk Lodgement Options
For organisations with multiple associated charities, the ACNC offers two reporting options to improve efficiency:
| Reporting Option | Description |
|---|---|
| Group reporting | Allows an approved group of registered charities to submit one joint AIS and financial report instead of individual ones. |
| Bulk lodgement | Enables a person or organisation to submit 10 or more individual AISs on behalf of multiple registered charities using a single form. |
The Consequences of Missing ACNC Deadlines
Financial Penalties for Late Submissions
Failing to submit your AIS on time can lead to financial penalties imposed by the ACNC. Your charity becomes liable for these penalties from the first day its report is overdue, with the amount increasing the longer the submission is delayed.
The penalty structure varies based on the size of your charity:
| Charity Size | Penalty Range |
|---|---|
| Small charities | A minimum of one penalty unit, increasing to a maximum of five penalty units if the report is over 112 days late. |
| Medium charities | A minimum of two penalty units, increasing to a maximum of ten penalty units. |
| Large charities | A minimum of five penalty units, increasing to a maximum of 25 penalty units for extensively overdue submissions. |
These graduated penalties highlight the importance of meeting your reporting requirements promptly to avoid unnecessary financial consequences for your organisation.
The Risk of Revocation for Your Charity
Beyond financial penalties, persistent failure to meet reporting obligations carries a more severe risk having your charity’s registration revoked. When your charity fails to submit its AIS on time, the ACNC will place an overdue notice on its public Charity Register entry.
If a charity fails to submit its AIS for two or more consecutive years, it is classified as a ‘double defaulter.’ In these cases, the ACNC may take the serious step of revoking the charity’s registration.
The consequences of revocation extend beyond the ACNC, as the Australian Taxation Office (ATO) will subsequently remove the charity’s entitlement to tax concessions. This represents a significant blow to the organisation’s operations and its ability to attract financial support.
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Conclusion
Meeting your charity’s ACNC reporting requirements is a critical responsibility that hinges on understanding deadlines, preparing the correct documents, and using available resources to simplify the process. Adhering to these obligations, from submitting the AIS to the annual financial report for larger charities, ensures transparency and prevents serious consequences like financial penalties or revocation.
If managing these reporting requirements feels overwhelming, our not-for-profit services law firm is here to provide clarity and support. Contact our team at LawBridge today for trusted expertise in financial management to ensure your charity meets its ACNC obligations accurately and on time.
