Reporting Level

Understanding Your Association’s Reporting Level in Queensland (Small, Medium, or Large)

And what this means for your audit or review. When I work with community groups, sporting clubs, kindergartens, and charities, one question comes up again and again:

“Are we small, medium, or large… and what does that actually mean for our reporting?”

In Queensland, every incorporated association is placed into one of three reporting levels. These levels help decide what type of financial statements you must prepare each year, and whether you need an audit or a verification review. Understanding your level makes your year-end reporting much easier.

1. The Three Reporting Levels in Queensland

Small associations

You are small if your association has:

• Current assets less than $300,000, and

• Total revenue less than $150,000

What you must do:

• Prepare yearly financial statements

• The president or treasurer must verify the financial statements or

• A certified accountant or registered auditor, or person approved by the OFT, can verify the financial statements.

Medium associations

You are medium if your association has:

• Current assets between $300,000 and $1,000,000, or

• Total revenue between $150,000 and $500,000

What you must do:

• Prepare yearly financial statements

• If another law requires an audit (for example, a grant agreement or a special purpose law), then you must have an audit or a grant acquittal

• If not, you must have a verification review by a certified accountant or registered auditor, or person approved by the OFT, can verify the financial statements.

Large associations

You are large if your association has:

• Current assets more than $1,000,000, or

• Total revenue more than $500,000

What you must do:

• A full audit every year by a certified accountant or registered auditor.

• Prepare financial statements that meet the requirements of the Associations Incorporation Act 1981 (Qld)

2. Why your reporting level matters

Your reporting level affects:

• The cost of your year-end work

• The type of engagement (audit or verification review)

• The timing needed to meet your Annual General Meeting deadline

• The records your committee must keep throughout the year

It also affects how prepared your committee should be. For example, a large association needs more structure around minutes, approvals, and record-keeping than a small sporting club.

3. What happens if your level changes?

Your level can change from year to year if:

• Your income increases

• You receive grants

• You hold large events

• Your current assets grow (for example, you upgrade equipment or save money for a future project)

If you move into a higher level, you must follow the new requirements in that year. It is good practice to check your level at each committee meeting when reviewing your treasurer’s report. This helps prevent last-minute surprises just before your AGM.

4. What about charities registered with the national regulator?

If your association is also registered with the Australian Charities and Not-for-profits Commission (ACNC), you may follow ACNC size thresholds instead.

However, you must still:

• Hold your AGM

• Keep proper financial records

• Disclose remuneration at the AGM

• Prepare financial statements

• Meet governance standards

• Lodge an annual information statement with the ACNC

If you meet the ACNC requirements, you do not lodge an annual return with the Queensland Office of Fair Trading. But your association still must comply with Queensland law.

5. A simple rule of thumb

Think about it like this:

What You Need

• Small - Verification by the president, treasurer or a certified accountant.

• Medium - Verification by a certified accountant or an registered auditor.

• Large - Full audit every year by a certified accountant or an registered auditor.

If you’re unsure, check your:

• Latest bank balance

• Total grants and income for the year

• Asset register

• Prior year financial statements

6. How I can help

Each year I help committees understand their reporting level and guide them on what is required for:

• A review

• An audit

• Preparing financial statements

• Meeting deadlines for your Annual General Meeting

• Ensuring compliance with Queensland rules

If you are unsure about your level or what you need this year, feel free to message me. A quick check can save weeks of stress at year-end.