From 1 January, charities can have up to $140,000 in operating expenditure before they have to prepare a financial report under ‘Tier 3’, a much stricter and complex requirement than Tier 4.
Charities are required to have a review from $550,000 in operating expenditure (previously $500,000), and an audit from $1.1m (previously $1m) performed by a registered auditor.
This is an adjustment by about 10% (12% for the reporting Tier), which roughly represents actual inflation since 2016, when the new rules came into effect.