For Impact is HLB Mann Judd’s regular newsletter for the not-for-profit community.

In Issue 25 we address we address NFP governance updates, compliance, ACNC activities, financial reporting insights, fundraising and deductible gift recipients & audits.

A summary of key points:

NFP Governance updates

Key points include:

  • Director Identification Number (DIN) is on the way
    DINs hope to combat illegal phoenixing by providing more effective tracking of directors and their corporate histories.
  • Governance institute releases guidance on Board papers
    The Governance Institute of Australia has released Board papers guidance aiming to arm decision-makers with clear, relevant information.

Compliance updates

Key points include:

  • Minimum wage increase
    The Fair Work Commission announced on 16 June a 2.5 per cent increase to the national minimum wage following its annual review.
  • Super-guarantee rate rise
    The super-guarantee rate rose on 1 July from 9.5 to 10 per cent. Organisations are reminded to ensure that payroll and accounting systems have been updated to incorporate the increase.

Financial Reporting updates

Key points include:

  • ASIC focus areas for 30 June Financial Reports
    ASIC has highlighted key focus areas for financial reporting for periods ending 30 June 2021.
  • NFP definition stays
    The AASB has decided to discontinue an attempt to redefine ‘not for profit entity’ and will retain the current definition in Australian accounting standards.

ACNC news

Key points include:

  • Governance standard strengthened 
    The federal government has announced amendments to Governance Standard 3 to ensure that Australian charities that engage in unlawful behaviour face enforcement action.
  • Reporting thresholds increased
    The new threshold for small charities will increase to annual revenue of less than $500,000. This will mean that nearly 2500 charities will no longer be required to produce reviewed financial statements under the regulations.