UNDOING THE SHACKLES ON ASSOCIATIONS

The Beattie Government today moved to remove excessive financial, public liability and administrative requirements for thousands of Queensland incorporated associations.

Fair Trading Minister Margaret Keech said the Associations Incorporation Act and Other Legislation Amendment Bill 2006 would make it easier for Queensland’s estimated 20,000 incorporated associations to do business and serve members.

“The present Associations Incorporation Act requires all associations, regardless of size, to submit professionally audited statements,” Mrs Keech said.

“The reporting system for associations is extensive and expensive. Small and medium-sized associations have had to raise extra funds just to meet the requirements.

”My recent review of the Act highlighted the need for change – and a three-tiered system was supported by 85 per cent of respondents.”

Mrs Keech said the tiered reporting system would be based on total revenue or assets:

§Level 1 associations, with at least total revenue or current assets of more than $100,000, will continue to be fully audited.

§Level 2 associations are those which do not fall into either Level 1 or Level 3. They will not be required to provide fully audited statements but must instead have a registered accountant confirm that the books of the association have been kept in a manner consistent with good accounting practice.

§Level 3 associations are those with total revenue of $20,000 or less and current assets of $20,000 or less. These associations will only be required to lodge a statement by the association’s president or treasurer, that they have kept accurate books of account.

“The lesser requirements for Level 2 and Level 3 associations is expected to benefit some 80 per cent of Queensland’s estimated 20,000 associations,” Mrs Keech said.

“These associations include social and sporting clubs, artistic societies, groups with religious, patriotic and political interests, professional associations, charitable organisations and youth, voluntary and community groups. They range from small, locally based organisations comprised entirely of volunteers, to licensed clubs staffed by professional managers with an annual turnover in the millions of dollars.”

Mrs Keech said there would also be significant changes to public liability insurance requirements.

“Consideration of public liability insurance is necessary but the current one-size-fits-all approach with 20,000 registered associations is now outdated,” she said.

“Under the proposed changes, some association management committees will be able to determine their own level of public liability insurance, unless they have property interests, which should reduce the overall costs of running the association.

“The high cost of insurance saw premium levels increase dramatically in 2003/2004.

“Although some types of public liability insurance have had premium reductions since then, the cost of public liability insurance remains a problem for associations, particularly smaller associations.

“All associations will benefit from these changes. However, any associations that presently receive funding or other benefits on the basis that they comply with certain auditing and insurance requirements will still need to meet such requirements.”

Other concerns identified in the review such as eligibility for incorporation, types of associations, dispute resolution and conflicts of interest raise complex issues and will be addressed in stage two amendments after further examination and consultation.

For further information on the current requirements for incorporated associations grab a free copy of the Incorporated Associations Good Business Guide by contacting the Office of Fair Trading on 13 13 04 or visit www.fairtrading.qld.gov.au.

Media contacts: David Smith 3225 1005 / 0409 496 534 or Natalie Perring (OFT) 3119 0064