October 2026
AASB · Reporting
Tier 3: Simpler reporting for not-for-profits
AASB 1061 introduces a simpler financial reporting framework, Tier 3, for eligible not-for-profit private sector organisations.
AASB 1061 introduces a simpler financial reporting framework known as Tier 3 for eligible not-for-profit private sector organisations. It will help smaller not-for-profits, including those needing to move from special purpose to general purpose financial statements under changes applying from July 2029.
When does it apply?
The standard applies to annual reporting periods beginning on or after 1 July 2029. Early adoption is permitted, provided AASB 2026-2 is applied to the same periods.
Who can use Tier 3?
Organisations must not have public accountability and are not prohibited from using Tier 3 by legislation, their constitution or other governing documents.
What becomes simpler?
Tier 3 simplifies selected accounting requirements and reduces some disclosures. More complex transactions may still require other Australian Accounting Standards.
What should you do now?
Discuss eligibility and potential changes with your financial statement preparer and auditor. Planning ahead can help identify changes needed to your accounting policies, records and reporting.