This page outlines the conditions that the ACNC has for reporting groups – organisations that, together, submit an Annual Information Statement as a group.
Approval to report as a group
Approval to report to the ACNC as a group is subject to review, but once an approval is granted, it will continue until we notify the group otherwise. If a reporting group fails to comply with any relevant conditions, we may remove the approval to report as a group. In such cases, we will notify the group of the changes to its approval.
From the 2018 reporting period
For the 2018 reporting period (reporting periods that begin on or after 1 July 2017), to retain approval to report as a group, an ACNC reporting group must comply with Condition 1 and Condition 2. Depending on the structure of the group, it may also need to comply with Condition 3.
This approval only relates to your reporting obligations with the ACNC. Any reporting obligations to other Commonwealth, state or territory agencies will continue unchanged.
The reporting group’s annual financial report (AFR) must comply with the Australian Accounting Standard AASB 10 Consolidated Financial Statements and AASB 12 Disclosure of Interest in Other Entities to the full extent possible. If a reporting group is not in full compliance with AASB 10 or 12, it must include a disclosure note in the AFR that provides reasons why and the extent to which compliance was impracticable.
If a reporting group includes members that are endorsed as Deductible Gift Recipients (DGR) or that operate DGR funds, they must be specifically identified as such in the AFR.
If a reporting group’s AFR includes entities that are not registered with the ACNC, the ACNC will accept the consolidated financial report as the group AFR, but the report must clearly indicate which financial information relates to the ACNC-registered charities and which financial information relates to entities that are not registered.
Deciding whether reporting Condition 3 will apply:
Does the reporting group include entities that are not registered with the ACNC?
- If yes - Condition 3 applies.
- If no - Condition 3 does not apply.
If Condition 3 applies:
- The reporting group must include a disclosure note that specifies the financial information of the ACNC-registered charities and the financial information of the entities not registered with the ACNC in the AFR. This disclosure note must be presented in the form of a table.
- The reporting group must only use the financial information that has been designated in the AFR as relating to ACNC-registered charities when completing the financial questions in the Annual Information Statement.
If the financial information of non-registered entity/s is immaterial for the ACNC reporting group as a whole, a reconciliation table will not be necessary. However, a disclosure note must be provided instead stating that the financial information relating to the non-registered entity/s is immaterial for the ACNC reporting group overall.
From the 2019 reporting period
For the 2019 reporting period (reporting periods that begin on or after 1 July 2018), reporting groups must comply with the three conditions for the 2018 reporting period as well as two additional conditions.
If a reporting group prepares a Special Purpose Financial Statement, it must adopt AASB Standard 124 Related Party Disclosures in full. This means the notes to the financial statement prepared for the reporting group must include disclosures about related party transactions and the remuneration of key management personnel.
This extra condition will not affect reporting groups that:
- are not required to submit financial statements (where all members of the group each have revenue less than $500,000), or
- prepare a full General Purpose Financial Statement, or a General Purpose Financial Statements – Simplified Disclosures Standard (as these should already comply with AASB 124 or AASB 1060).
All reporting groups must comply with ACNC reporting obligations, particularly the requirement to submit the Annual Information Statement by the due date.
From the 2019 reporting period, the ACNC will review the approval of reporting groups that submit their Annual Information Statement and financial report late for two reporting periods (these periods do not need to be consecutive), unless they received an extension approved by the ACNC Commissioner.