Audit Lowe Down – What Should Be on the Board/Management Committee Agenda for NFP and Smaller Entities?
Lowe Lippmann Chartered Accountants
What Should Be on the Board/Management Committee Agenda for NFP and Smaller Entities?
We are fast approaching the end of the calendar year – the second most common reporting date for entities in Australia. Board and Management committees (Boards) of not-for-profits (NFPs) and small entities will be considering their annual reports and the 2025 outlook and as part of this project, it will be time to ensure the Board attention areas are appropriate.
Boards should focus on current and emerging risks to ensure their organisations remain resilient and effective – the normal items of financial management, governance, and strategic planning remain relevant, however other key matters which should be included are:
- Cybersecurity: Ensure your organisation is protected against increasing cyber threats and has robust data protection measures in place, including knowing what data is collected and retained by the organisation.
- Climate Risk: Evaluate how environmental changes impact operations, funding, and long-term sustainability and whether there is impact from the mandatory climate-reporting risk regime on your suppliers which may impact you.
- Diversity & Inclusion: Ensuring your governance and decision-making reflect the community your organisation serves, and the appropriate voice is being heard.
- Digital Transformation: Discuss emerging technologies for operational efficiency and addressing any digital gaps. Ensure appropriate policies for the use of AI are in place.
- Staffing and Succession Planning: Regularly review staffing levels, development opportunities, and establish succession plans for key roles, such as the Chair of the Board, CEO or General Manager.
- Geopolitical situation: Consider any likely impacts from the current world uncertainty and overseas elections including supplier and beneficiary locations, changes in exchange rates and interest rates.
Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.
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Transfer Balance Cap indexation & Superannuation changes Following the recent release of the December 2025 quarterly CPI figures by the Australian Bureau of Statistics’, the general transfer balance cap ( TBC ) will increase from $2 million to $2.1 million from 1 July 2026. This is applicable for superannuation fund members considering starting their first retirement phase income stream in 2026–27. This could provide tax effective retirement pension and non-concessional contribution opportunities for some members. The Australian Taxation Office needs to formally confirm this increase.
Mandating cash acceptance The Government recently announced that it was delivering on its commitment "to mandate cash acceptance for essential purchases by finalising regulations that require fuel and grocery retailers to accept cash from 1 January 2026." The changes mean that, from 1 January 2026 , most food and grocery retailers must accept cash for in-person transactions of $500 or less between 7am and 9pm. Small businesses with aggregate annual turnover under $10 million are generally exempted from this mandate. However, this mandate still applies to small businesses that choose to share a trademark with a large retailer. The Government noted that, in addition to the cash mandate for fuel and groceries, consumers also already have the option to pay their bills, including utilities, phone bills and council rates, in cash at their local Australia Post outlet through Post Billpay. The Government will review this mandate after three years, to ensure it is functioning as intended. We prepared a Special Topic article within our Practice Update - December 2025, if you want to read more on this topic – click here .
Preparing your business for Payday Super changes starting 1 July 2026 From 1 July 2026, employers will have to pay their employees’ compulsory Superannuation Guarantee ( SG ) contributions at the same time as they pay their salary and wages (ie. ordinary time earnings, OTE ). This is a change in the frequency of the payment rather than its calculation. With less than six months remaining, we believe it is very important to start preparing your business for these changes. We will outline some actionable steps that can be taken now to help manage the process to be compliant with the new changes leading up to 1 July 2026. These changes will apply to all Employers, whether they have pay cycles weekly, fortnightly, monthly or irregularly. SG contributions must generally arrive in an employee’s chosen super fund within 7 business days of each payday . Please note that in November 2025 we released a Tax Alert after the payday super rules received Royal Assent and became law summarising the changes employers need to be aware of - to read click here .
