Compliance for Australian charities + NFPs

ACNC governance standards, AIS lodgement, DGR self-review (mandatory annual from 1 July 2024), state fundraising authorities in 8 jurisdictions, Modern Slavery if you're a reporting entity, plus the same WHS + Privacy + tax obligations as any AU employer.

Australia has roughly 60,000 registered charities and another 150,000+ NFPs. They run under one of the most layered compliance frameworks in the country — federal ACNC for charity status + governance + annual reporting; the ATO for DGR endorsement + tax concessions; each state and territory for fundraising authorisation; plus the standard employment, WHS, privacy + procurement obligations every AU organisation faces.

The 2024-2026 wave significantly raises the bar. The DGR annual self-review became mandatory from 1 July 2024 (Treasury Laws Amendment Act 2023). Removing the Privacy Act 1988 small-business exemption is proposed for a future reform tranche — recommended in the Privacy Act Review and agreed in principle by the Government, but not yet law and with no commencement date; if enacted it would bring thousands of small charities into APP scope for the first time. NFPs with consolidated revenue ≥$100M must publish a Modern Slavery Statement annually; the Anti-Slavery Commissioner is now actively enforcing.

This page captures the practical compliance picture for an Australian charity or NFP, in priority order.

1. ACNC registration + governance

Charity status is granted by the Australian Charities and Not-for-profits Commission under the ACNC Act 2012. Registration requires meeting the charity definition + one of 12 charitable purposes + satisfying 6 governance standards (External Conduct Standards on top for overseas activity). Non-charity NFPs sit outside ACNC but must self-assess income tax exemption with the ATO (annual NFP self-review return mandatory).

2. Annual Information Statement (AIS)

ACNC-registered charities must lodge an AIS within 6 months of financial year end. Failure to lodge for 2 consecutive years = automatic revocation, loss of DGR status, loss of tax concessions, recovery of historical concessions. Medium + Large charities (revenue ≥$500K) lodge financial reports alongside.

3. DGR endorsement + annual self-review

Deductible Gift Recipient status is granted by the ATO under Subdivision 30-B ITAA 1997. From 1 July 2024, most DGR categories require ACNC registration + annual self-review confirming continued eligibility. PAFs (Private Ancillary Funds) have additional 5% minimum distribution + investment strategy + portfolio governance requirements.

4. State fundraising authority — every state you fundraise in

Each state and territory requires authorisation for public fundraising appeals. ACNC harmonisation is incomplete; charities active in multiple states must hold separate state authorities. Cycle 1-3 years renewal. Penalties for unauthorised fundraising are state-level criminal offences.

5. WGEA reporting (charities with 100+ employees)

Workplace Gender Equality Act 2012 mandatory reporting if you employ 100+ FTE staff. Annual report + employer statement + gender pay gap public publication from Feb 2024 onward.

6. Modern Slavery Statement (≥$100M consolidated revenue)

Modern Slavery Act 2018 (Cwlth) applies to charities with consolidated revenue ≥$100M — typically only the largest NFPs (Salvos, Vinnies, Mission Australia, etc.). Annual statement against 7 mandatory criteria; published in the Register; Anti-Slavery Commissioner enforces.

7. Privacy Act reforms + the proposed SMB exemption removal

Charities under the $3M revenue threshold are currently exempt from APP compliance. Removing that exemption was recommended in the Privacy Act Review and agreed in principle by the Government, but it is deferred to a future reform tranche — not yet law, with no commencement date. If enacted, every charity holding personal information would become an APP entity (privacy policy, NDB scheme, APP 11 reasonable steps, etc.). Charities collecting donor + beneficiary data should track the reform and consider designing APP-compliant systems early.

8. WHS + employment law

Same WHS Act + Fair Work Act obligations as any AU employer. Volunteer health + safety is in scope (charity volunteers are 'workers' under model WHS Act s 7). Closing Loopholes No. 2 — wage theft criminal from 1 Jan 2025 + Right to Disconnect from 26 Aug 2024 (small employer 26 Aug 2025) — applies to charity employees too.

9. Public Benevolent Institution (PBI) and Item 2 endorsement

PBI status grants additional FBT exemption + GST concessions. Strict 'relief of poverty, sickness, suffering, distress, misfortune, destitution, or helplessness' test. ATO + ACNC routinely re-test on changes in activity mix.

10. Trust + corporate governance overlay

Most charities are companies limited by guarantee (Corporations Act + ACNC override certain provisions). Some are trusts (state Trustee Acts). Boards owe ACNC governance standard duties + state trustee duties as applicable. Directors of charitable companies still need a Director ID.

FAQ

Does a small charity need a Privacy Policy now?

Under the current SMB exemption — only if you handle health info, sensitive info, trade in personal info, are a credit provider, or are an APP-entity for another reason. The proposed removal of the SMB exemption (recommended in the Privacy Act Review, agreed in principle by the Government, but not yet law and with no commencement date) would, if enacted, mean every charity holding personal info needs an APP-compliant policy + NDB scheme readiness.

Can a charity lose its DGR status quietly?

Yes. Failure to lodge the annual self-review from 1 July 2024 onward, missed AIS lodgements, or activity drift away from the DGR-endorsed category all trigger ATO revocation — sometimes backdated, with concessions recovery.

Do I need to register in every state I fundraise?

Each state takes a different view. NSW + Vic + Qld + WA + SA + Tas + ACT + NT all have separate fundraising authorisation regimes. Online fundraising that reaches residents of a state typically requires authorisation in that state.