9 Sep 2013

Changes to financial reporting for charities

4:34 pm on 9 September 2013

The Government has announced changes that will crack down on the financial reporting of charities which spend more than half a million dollars a year.

Commerce Minister Craig Foss says charities with annual expenditure of $500,000 or more will be required to have their financial statements reviewed by a qualified accountant.

Charities which spend more than $1 million a year will have to audit their financial statements.

Mr Foss says those changes will improve the quality of financial reporting among charities and will strengthen confidence in the charity sector.

"Most charities are already having their accounts audited and appropriately reviewed. It really just provides further confidence for those that give/donate to charities and also those that are operating in the charitable sector that everyone knows the accounts that are reported are transparent and robust."

He says new legislation that will amend the Charities Act will be introduced to Parliament.