More than 4,000 charities are risking sanctions after missing the deadline for their annual reporting to the national charity regulator.
Registered charities that report on a standard financial year, 1 July until 30 June, were required to submit their Annual Information Statement to the Australian Charities and Not-for-profits Commission (ACNC) by 31 January 2017.
ACNC Commissioner Susan Pascoe commended those who completed their annual reporting on time.
“My thanks to the majority of charities who lodged their 2016 Annual Information Statement on time,” she said.
“The Community will now have access to up-to-date information about them.
“However, those charities that have yet to submit their 2016 Annual Information Statements are encouraged to do so now, to avoid penalties, or potentially revocation of charity status.”
Registered charities that fail to meet their obligations may face financial penalties, and will lose the right to display the ACNC’s Registered Charity Tick. Ultimately, these registered charities also risk having their charity status revoked.
Pascoe said that most charities have had several years to familiarise themselves with the ACNC’s annual reporting requirements.
“The 2016 Annual Information Statement is the fourth annual report that registered charities have been required to submit to the ACNC,” Pascoe said.
“Each year we send charities multiple reminders to ensure they know when their reporting is due, and how they can access our range of guidance materials and support services.”
Penalty notices can reach $4,500, depending on the size of the charity.
For charities that have failed to submit two Annual Information Statements, known as double defaulters, the risk grows.
“Failing to submit two Annual Information Statements is grounds for revocation of charity status,” Pascoe said.
“This is serious step and will result in the charity being de-registered by the ACNC, which means losing access to Commonwealth charity tax concessions.”