Tier 1 and Tier 2

Find out more about Tier 1 and Tier 2 standards and where to find further information. 

Charities Services' main focus is on supporting Tier 3 and Tier 4 organisations, which make up around 97% of the Charities Register and which are likely to have less resource available for an accountant.

Refer to the External Reporting Board's (XRB) website(external link) for more information about the standards and further guidance. 

Refer also to the Appendix of the Chartered Accountants Australia New Zealand's (CAANZ) "New Charity Reporting - One Year On [PDF, 202 KB]" report for additional resources available for Tier 1 and 2 charities.


Tier 1 & 2 charities must prepare financial statements in accordance with generally accepted accounting practice (GAAP). Summarised financial statements do not meet the requirements of GAAP, and therefore only full sets of financial statements should be submitted to Charities Services.

Example financial reports
On this page, you'll find Tier 1 and 2 example financial reports to help you prepare your own.

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Service performance reporting
For reporting periods beginning on or after 1 January 2022, Tier 1 and Tier 2 charities will need to include non-financial information alongside the financial statements they file with Charities Services. Together, the financial and non-financial information is referred to as a Financial Report. This is because the External Reporting Board (XRB) has issued a new financial reporting standard: Service Performance Reporting (PBE FRS 48) .

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