For Impact – Issue 21

For Impact is HLB Mann Judd’s regular newsletter for the not-for-profit community. In Issue 21 we address:

Why now is the ideal time for some reporting housekeeping

NFP organisations are currently adopting the new revenue and leasing standards. This is an ideal time to improve the overall presentation of their financial reports.

JobKeeper payment extension details

JobKeeper payment has been extended to 28 March 2021. The rules will change from 28 September and will require additional testing.

NFP Governance updates

Key points include:

  • National regulatory approach to charitable fundraising
    State and territory NFP regulators have issued a statement about the enforcement approach they will take in the light of COVID-19.
  • Good-governance guides released
    Three new guides have been that explore key challenges, topics include: Technology, Emerging risk and Compliance guide (revised).
  • ATO warnings on COVID lurks
    The ATO says it will stamp down on anyone engaging in illegal behaviour or developing contrived schemes to take advantage of COVID-19 stimulus packages.

Financial Reporting insights

Key points include:

  • Several AASBs operative for 30 June
    Under AASB 15 Revenue from Contracts with Customers, revenue is recognised so that promised goods and services are transferred in an amount that reflects the consideration to which their provider expects to be entitled.
  • COVID-19 causes Leases amendment
    AASB 16 Leases has been amended to exclude rent holidays caused by COVID-19 from being assessed as lease ‘modifications’.
  • COVID-19 and going concern
    For the first time, many entities will be required to consider in more detail their solvency and ability to continue operating as a going concern.

ACNC news

Key points include:

  • ACNC and COVID-19
    The ACNC has has set up a dedicated web page to help charities affected by COVID-19.
  • Release of The Australian Charities Report 2018
    Australian charities’ revenue grew by more than 6 per cent in 2018, more than triple the Australian economy’s counterpart figure.

Government and ATO updates

Key points include:

  • Treasurer clarifies JobKeeper
    Treasurer Josh Frydenberg has clarified JobKeeper payments, affecting whether certain charities and NFPs may access the scheme.
  • Amendments to encourage increased grants
    The federal government is creating an incentive for philanthropic funds to support charities in times of need.
  • Red tape reduced for Queensland charities
    Law changes have been introduced to reduce red tape and improve internal governances for registered as charities.
Download