Important Law changes for incorporated associations
Update September 2023
Find out what your incorporated association needs to do ahead of new rules including:
- Changes to financial reporting thresholds – for incorporated associations and registered charities. While the thresholds for each level have changed, the applicable reporting and auditing requirements have not.
Beginning 1 July 2024: Click here to see more
- Remuneration disclosure – to help improve transparency and accountability, associations must disclose at their annual general meeting, any remuneration or other benefits
- Internal grievance procedure – incorporated associations will need to need to follow the grievance procedure in the model rules or adopt a compliant formal grievance procedure in their own rules.
Red tape cut for more than 20,000 Queensland clubs and community groups
More than 20,000 Queensland incorporated associations will save time and money due to changes to their financial reporting thresholds that began on 1 July 2023.
The changes, which were made in consultation with the sector, have increased the level of assets an association can hold and the revenue it can receive without having to engage a registered auditor to review its financial statements, and created new revenue-based reporting rules for charities.
Changes that started on 1 July 2023
Financial reporting thresholds
Reporting thresholds for non-exempt associations have changed, meaning your association classification may have changed.
- Large associations (previously Level 1)—from current assets or revenue of more than $100,000 to either
- current assets of more than $1 million
- total revenue of more than $500,000
- Medium associations (previously Level 2)—from current assets or total revenue between $20,000 and $100,000 to either
- current assets between $300,000 and $1 million
- total revenue between $150,000 and $500,000
- Small associations (previously Level3)—from current assets or revenue less than $20,000 to current assets of less than $300,000 and total revenue of less than $150,000.
Financial reporting requirements for charities
Financial reporting requirements for non-exempt charities have changed.
Learn about the new reporting requirements for charities and fundraising .
If your association is also registered as a charity, you may no longer need to have your financial records audited under the Collections Act 1966.
The new reporting rules for charities are set out below and apply to charities that are not exempt from reporting to the Office of Fair Trading.
Changes that started on 1 July 2024
Other changes around grievance procedures and remuneration disclosure will begin on 1 July 2024, giving associations a year to prepare for the changes.
Internal grievance procedure
From 1 July 2024, incorporated associations will need to need to follow the grievance procedure in the model rules or adopt a compliant formal grievance procedure in their own rules.
Your association can adopt a grievance procedure at any time, but it must meet the requirements set out in section 47A of the Associations Incorporation Act 1981, including:
• allowing a member to appoint any person to act on their behalf
• giving each party involved an opportunity to be heard
• providing for unbiased mediation if the dispute cannot be initially resolved amongst parties
• if the grievance procedure provides for a person to decide the outcome of the dispute, the decision maker must be unbiased.
This requirement will provide associations with a formal process to address internal conflicts and help parties to settle them before they incur legal costs.
It is important to note that the Office of Fair Trading cannot assist in resolving internal disputes. The Supreme Court of Queensland is the only body that can intervene in the operation of an incorporated association.
Remuneration disclosure
From 1 July 2024, to help improve transparency and accountability, associations must disclose at their annual general meeting, any remuneration or other benefits given to:
• management committee members
• senior staff
• relatives of management committee members and senior staff.
This information may be disclosed as a total value given to all persons but must include the number of people who benefitted.
This requirement will provide greater transparency and accountability within associations and enable members to assess whether remuneration and benefits paid to key individuals are an appropriate use of the association’s resources.
You can find more information on the changes to reporting thresholds and 1 July 2024 changes at the website