ACNC Compliance and What You Must Know

ACNC compliance is a core responsibility for every registered charity in Australia.

It supports transparency, accountability, and public trust. It also ensures your organisation can continue operating and accessing funding.

This guide outlines the key areas of ACNC compliance and what not-for-profits need to have in place.

What is ACNC compliance?

The Australian Charities and Not-for-profits Commission (ACNC) is the national regulator for charities.

Registered charities must meet ongoing obligations, including:

• annual reporting
• financial record-keeping
• governance standards

These requirements are designed to maintain trust and ensure organisations operate responsibly.

Why ACNC compliance matters

Staying compliant helps your organisation:

• maintain charity registration
• meet funding and grant requirements
• build credibility with donors and stakeholders
• support strong governance practices

Non-compliance can lead to penalties or, in some cases, loss of registration.

Key ACNC compliance requirements

1. Annual Information Statement (AIS)

All registered charities must lodge an Annual Information Statement.

This includes details such as:

• activities and outcomes
• financial summary information
• governance and operational details

The AIS must be submitted within six months of the end of your financial year.

2. Financial reporting

Depending on the size of your organisation, you may also need to lodge financial statements.

These reports should be:

• accurate and complete
• prepared in line with relevant standards
• supported by clear documentation

Consistent financial reporting processes help ensure these requirements are met.

3. Related party disclosures

Charities are required to report related party transactions.

This involves documenting transactions between the organisation and related individuals or entities.

Clear records should be maintained throughout the year to support this reporting.

4. Record-keeping

Accurate records are essential for compliance.

Your organisation should maintain:

• financial records
• supporting documentation for transactions
• governance and meeting records

Well-structured bookkeeping systems make this process more reliable.

5. Governance standards

The ACNC sets governance standards that charities must follow.

These cover areas such as:

• responsible management of resources
• accountability to members
• compliance with Australian laws

Boards and responsible persons play a key role in meeting these standards.

Financial controls and oversight

Strong internal controls support accurate reporting and reduce risk.

This may include:

• clear approval processes for payments
• separation of duties
• regular reconciliations
• documented financial procedures

These controls help ensure transactions are authorised, recorded, and reviewed appropriately.

Independent audit and review

Audit requirements depend on the size and structure of the charity.

In general:

• larger charities require an independent audit
• medium charities may require a review

An audit provides independent assurance that financial statements are accurate and complete.

Planning early and selecting an appropriate auditor supports a smoother process.

Common ACNC compliance challenges

Many not-for-profits face challenges such as:

• unclear reporting requirements
• incomplete or inconsistent records
• limited internal finance capacity
• difficulty tracking related party transactions

These are often addressed through clearer systems and regular review.

What good looks like

A compliant organisation should have:

• up-to-date and accurate financial records
• timely AIS and financial statement lodgements
• clear documentation of transactions and decisions
• defined governance and approval processes
• visibility for the board over financial performance

This creates confidence for both internal and external stakeholders.

When to review your compliance

It may be time to review your ACNC position if:

• reporting deadlines are difficult to meet
• records are not consistently maintained
• roles and responsibilities are unclear
• you are preparing for audit or funding reviews

A structured review can help identify gaps and improve processes.

Start a conversation

ACNC compliance is an ongoing process, not a once-a-year task.

Hopscotch Accounting supports not-for-profits with financial reporting, governance processes, and systems that make compliance more manageable and consistent.

Start a conversation to review your compliance framework and reporting processes.

FAQ’s