The Queensland Government introduced changes to reduce red tape and improve internal governance for incorporated associations, including those that are registered as charities, effective 1 July 2023.
These changes which relate to remuneration disclosure and internal grievance procedures are detailed in this article.
Changes to financial reporting thresholds
The ‘Associations Incorporations Regulation 1999’ has been amended effective from 1 July 2023 to increase the financial reporting thresholds for incorporated associations in Queensland.
The changes, which were made in consultation with the sector, have changed the level of assets an association holds, and the total revenue received without having to engage a registered auditor to audit and review its financial statements, and created new revenue-based reporting rules for certain charities.
The changes to incorporated association financial reporting thresholds for each level have been set out in the table below. While the thresholds for each level have changed, the applicable reporting and auditing requirements have not.
The changes are as follows:
| Class |
Category |
Old thresholds |
New thresholds |
| Large |
Current assets
Total revenue |
> $100,000
and/or
>$100,000 |
> $1 million
and/or
>$500,000 |
| Medium |
Current assets
Total revenue |
between $20,000 - $100,000
and/or
between $20,000 - $100,000 |
between $300,000 - $1 million
and/or
between $150,000 - $500,000 |
| Small |
Current assets
Total revenue |
< $20,000
and/or
< $20,000 |
<$300,000
and/or
< $150,000 |
However, please note that if an association’s governing document specifies different amounts, then this will override the above. In this case, those governing documents will need to be amended.
At the same time the financial reporting requirements of the ‘Collections Regulation 2008’ was amended to be consistent with the ‘Associations Incorporations Regulation 1999’. This should mean that many small charities registered under the ‘Collections Act 1966’ will no longer need to be audited.
In addition, if an association is required to have an audit conducted under another law (such as the Charitable and Non-Profit Gaming Act 1999) then the association will still need to have an audit as required by that law.
Disclosure requirements
In addition, changes were made to the ‘Associations Incorporations Regulation 1999’ to require disclosure about remuneration and other benefits given to:
- Each member of the management committee.
- Each senior staff member of the association.
- Each spouse, parent, sibling, child, grandparent or grandchild of the above.
However, these disclosure requirements only become effective from 1 July 2024.
The disclosures required are:
- Aggregate amount of remuneration paid and benefits given to the above persons.
- The number of persons who were paid remuneration or given other benefits.
Generally, the determination of remuneration and other benefits will be in accordance with AASB 124 ‘Related Party Disclosures’. However, there is scope to exclude the value of free or subsidised goods or services where they do not constitute sufficient value to be considered a benefit.
The disclosures can be made in three ways:
- as a note to the financial statements,
- in a separate written statement presented at the Annual General Meeting, or
- if no remuneration was paid or benefits given this would be disclosed either (a) in the above two options or (b) the making of an oral statement to that effect that must be recorded in the minutes of the Annual General Meeting.
Internal Grievance Procedures
The ‘Associations Incorporations Regulation 1999’ was also amended effective 1 July 2024 to require that all associations follow an internal grievance procedure.
Associations will need to follow either:
- the grievance procedure in the model rules, or
- adopt a compliant formal grievance procedure in their own rules.
If an association wishes to have its own procedure, then it will probably have to amend its governing document to comply with s.47A of the ‘Associations Incorporations Act 1981’ to adopt a procedure that:
- Allows a member to appoint any person to act on their behalf.
- Gives each party an opportunity to be heard.
- Allows unbiased mediation if the dispute cannot initially be resolved.
- Ensures a decision-maker is unbiased if the grievance procedure allows a person to decide the outcome of the dispute.
More Information
Should you have any questions relating to the above changes, please contact your Moore advisor.
Further information on the changes to the reporting thresholds and 1 July 2024 changes can be found on the Queensland State Government website.