- Comparative changes – Associations Incorporation Act 2015 (WA)
With the new Associations Incorporation Act, the West Australian government aims to promote greater efficiency and accountability, align the act with legislation in other Australian jurisdictions (e.g. the Corporations Act) and minimise compliance and administrative costs for incorporated associations. The Act will take effect on 1 July 2016, with a three-year transition period.
|1987 (WA) Act||2015 (WA) Act|
|Financial Reporting Requirements||
Rules applied to all associations no matter their revenue or size. Associations must:
|All associations must give a ‘true and fair view’ of financial position and present financial statements at the AGM. Also required to lodge a basic annual statement with the Commissioner. Tiered structure is based on revenue in the relevant financial year:
|Model rules: Constitution||The rules should include all matters in Schedule 1 of the Act.
Associations can create their own rules or adopt the model rules.
Distribution of surplus property to be decided by resolution of the members if no rule made. Distribution plan must be lodged with the Commissioner
|Imposes additional requirements:
|Duties||Committee is those persons who ‘have the power to manage the affairs of the association’.
Duties of committee members:
|Committee officers are defined as including members of the management committee (and those who they instruct), persons including employees whose decisions affect a substantial part of the operations, and any person whose capacity can significantly affect the associations financial standing
|Other||AGM needs to be four months after financial year end||AGM needs to be six months after financial year end. Scope includes wider range of eligible organisations and allows for trading (with conditions)|