We're a Baker Tilly network member
About Baker Tilly
Back to top
Best practice charity disclosures
Article

Best practice charity disclosures

The ACNC has recently published recommended best practice disclosures for a charity’s annual financial report which go over and above disclosures required under Australian Accounting Standards.

The ACNC advises that this is to ‘help charities provide information that is useful, informative and consistent, and to encourage transparency and accountability’.

The disclosures aim to provide more information to users on government funds received by charities as nearly half of the revenue of the charity sector comes from government. These disclosures may also allow the ACNC to pursue more ways to cut red tape for charities, particularly when it comes to duplicate reporting in the form of grant acquittals.

The ACNC recommends additional disclosures in three areas, to be included in the notes to the financial statements, as follows:

  1. Disclosure information about the sources of government revenue
  2. Disclose economic dependency on government revenue
  3. Disclose funding received from government but not yet recognised as revenue.

Along with the recommendations which are summarized below, the ACNC has also showed worked examples of the additional disclosures here

Sources of government funding

Where more than 10% of total revenue is received from government, the ACNC recommends the following additional information be disclosed:

  • The total revenue received by each level of government
  • The names of the government departments or agencies from which it received revenue, as well as the total amounts it received from each
  • The revenue from providing goods and services to beneficiaries who receive related government financial assistance.

Economic dependency

This recommended disclosure relates to charities that are dependent on the government for significant revenue or financial support.

Government funding that is received and deferred

This recommends the specific disclosure of any government funding that has been received and deferred as a liability at balance date, being separate to any non-government amounts that were received and deferred.

This content is general commentary only and does not constitute advice. Before making any decision or taking any action in relation to the content, you should consult your professional advisor. To the maximum extent permitted by law, neither Pitcher Partners or its affiliated entities, nor any of our employees will be liable for any loss, damage, liability or claim whatsoever suffered or incurred arising directly or indirectly out of the use or reliance on the material contained in this content. Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.

Pitcher Partners insights

Get the latest Pitcher Partners updates direct to your inbox

Thank you for you interest

How can we help you?

Business or personal advice
General information
Career information
Media enquiries
Contact expert
Become a member
Specialist query
Please provide as much detail to ensure appropriate allocation of your query
Please highlight a realistic time frame that will enable us to provide advice within a suitable and timely manner. Please note given conflicting demands with our senior personnel, we will endeavour to respond to you within the nominated time frame. If you require an urgent response, please contact us on 03 8610 5477.
Responses to queries submitted via this form (“Response”) are produced by Pitcher Partners Advisors Proprietary Limited and are prepared for the exclusive use and benefit of those who are invited, and agree, to participate in the CRITICAL POINT NETWORK service. Responses provided, or any part thereof, must not be distributed, copied, used, or relied on by any other person, without our prior written consent. Any information provided is intended to be of a general nature and prepared without taking into account your objectives, circumstances, financial situation or particular needs. Any information provided does not constitute personal advice. If you act on anything contained in a Response without seeking personal advice you do so at your own risk. In providing this information, we are not purporting to act as solicitors or provide legal advice. Any information provided by us is prepared in the ordinary course of our profession and is based on the relevant law and its interpretations by relevant authorities as it stands at the time the information is provided. Any changes or modifications to the law and/or its interpretation after this time could affect the information we provide. It is not possible to guarantee that the tax authorities will not challenge a transaction or to guarantee the outcome of such a challenge if one is raised on the basis of the information we provide. To the maximum extent permitted by law, Pitcher Partners will not be liable for any loss, damage, liability or claim whatsoever suffered or incurred by any person arising directly or indirectly out of the use or reliance on the information contained within a Response. We recommend you seek a formal engagement of our professional services to consider the appropriateness of the information in a Response having regard to your objectives, circumstances, financial situation or needs before proceeding with any financial decisions. Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.
CPN Enquiry
Business Radar 2025
Dealmakers 2025
Federal Budget 2025-26
Search by industry