In Victoria, a not-for-profit organisation can incorporate as an incorporated association, enabling the organisation to become a legal entity distinct from any individual member of the organisation.

The Associations Incorporation Reform Act 2012 (Vic) (the Act) provides the legal basis for this business structure. The Associations Incorporation Reform Regulations 2012 (the current Regulations) set out a range of requirements for the establishment, operation, and cancellation of an incorporated association.

The Department of Government Services is seeking to make the Associations Incorporation Reform Regulations 2023 (the proposed regulations) before the current Regulations expire on 19 November 2023.

In March 2023, the Department of Government Services undertook stakeholder consultation with a targeted group of incorporated associations across Victoria. The Department of Government Services carefully considered the feedback received, which informed the development of the proposed regulations and regulatory impact statement.

In addition to revising the prescribed fees for transactions under the Act, the proposed regulations make several key changes to the regulatory scheme for incorporated associations including:

• Revising the tiers and revenue thresholds for financial reporting to re-align Victoria with recent amendments by the Australian Charities and Not-for-profits Commission to the financial reporting thresholds for small, medium and large charities.

• Increasing the asset ceiling for voluntary cancellation of an incorporation association from $10,000 to $50,000.

• Modernising the model rules to enable the flexible use of technology.

• Introducing new processes for disciplinary appeals, ensuring higher standards for internal dispute resolution. 

A regulatory impact statement has been prepared and examines the costs and benefits of the proposed regulations. The Victorian State Government are seeking your feedback on the regulatory impact statement and proposed regulations.

For more information, read the full article here. 

Taken from the Victorian State Government article on 25 August 2023.