New 2022 Annual Information Statement requirements to save charities thousands

As of Friday, thresholds for small and medium-sized charities will rise and annual compliance reporting will become more flexible.

Assistant Minster for Competition, Charities and Treasury Andrew Leigh said the previous government had "waged a nine-year war on charities".

"Charities are the first line of support for the most vulnerable in our communities. The sector's staff and volunteers have helped millions of Australians rebuild their lives after floods and fires, and have kept communities together in the face of falling volunteer numbers and a decline in donations," Mr Leigh said in a statement.

"In the new Australian government, charities have a true partner, one which respects their role, and wants to empower them to help the community. We will continue to work collaboratively with charities to reconnect Australia."

This follows an election-pledge by Labor to establish an expert panel to help bolster the sector.

The annual revenue threshold for small charities has doubled, allowing 2500 charities across Australia to save $2400 in accounting expenses.

The threshold for medium charities tripled to $3 million resulting in an expected $3000 saving for 2700 charities across the country.

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These changes come into effect for the 2022 Annual Information Statement, ready for the 2021/22 financial year.

More than 18,000 charities will also benefit from increased reporting flexibility allowing small charities using cash accounting to provide a short, written description of their assets and liabilities, without balance sheet figures.