Important changes for QLD Incorporated Associations

Murray McDonald

5 August 2020

In June 2020, the Queensland Government passed a number of significant changes to the Associations Incorporations Act 1981. The changes were designed to modernise the requirements and reduce red tape for associations registered with the Australian Charities and Not-for-profit Commission (ACNC).

The changes are scheduled to take effect over a two-year period, with the initial updates in effect from 22 June 2020:

Associations can freely use technologies such as video conferencing to hold meetings. Previously, this was not possible unless the individual association’s rules allowed.
The model rules included in the Act can now be adopted by an association at any time (rather than just on incorporation). However, we note that although the model rules may not be exactly suitable for many associations, they may be useful for associations in updating their existing rules.
Where an association gets into financial difficulties it can appoint a voluntary administrator under the Corporations Act 1981. This gives more flexibility for an association as an alternative to appointing a provisional liquidator.
Similarly, if the association is no longer needed it can apply to the Chief Executive of the Office of Fair Trading (OFT) to be voluntarily cancelled, provided it has no outstanding liabilities and is not a party to any legal proceedings. This will be quicker and less expensive than the formal winding up process.
Persons convicted of certain offences can now sit on a management committee after five years (reduced from ten years).

Changes expected to take effect by 30 June 2021:

Associations registered with the ACNC or under the Collections Act 1966 will no longer have duplicate reporting requirements. In particular, ACNC entities will no longer have to lodge financial returns with the OFT or pay a lodgement fee.
The duties of management committee members will be extensively revised to modernise the requirements partly in line with the rules for companies and ACNC entities. In particular, the rules around personal benefits will be clarified and disclosure of;
- personal interests and
- any remuneration or benefits given to committee members, senior association staff or their relatives
Associations will no longer be required to use a common seal in line with requirements for companies. However, they will need to amend their rules to allow this.
The Secretary of an association will have to be 18 years or older.
The Fair Trading Inspectors Act 2014 will be amended to allow inspections of associations including powers of entry and seizure of assets in certain circumstances.

Further and final changes at the time of publication, expected to take effect by 30 June 2022:

Associations will need to have an internal grievance procedure or a dispute resolution process in place. If a tailored procedure or process is not in the association’s rules, the procedure in the model rules will have to be followed.

Incorporated Associations Not For Profit