Easing the pressures for Associations

The Beattie Government’s amendments to the Associations Incorporation Act 1981 (the Act) will ease the pressure on Queensland’s estimated 20,000 incorporated associations, Fair Trading Minister Margaret Keech said today.

Mrs Keech said Queensland’s estimated 20,000 incorporated associations would be able to better serve the interests of members.

“Financial and administrative pressures have been lessened for small to medium size associations, thanks to the changes that come into effect today,” Mrs Keech said.

“Associations’ financial reporting requirements are now determined by their current assets and total revenue. Public liability insurance levels, if any, are now determined by the management committee.”

”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 is 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 are expected to benefit 80 per cent of Queensland’s estimated 20,000 associations,” Mrs Keech said.

Registered associations in Queensland have been informed in writing of the commencement of the new laws, and have been provided with detailed information about the changes.

“Several reference fact sheets have been developed to help associations clearly understand the new rules.”

Fact sheets are available at www.fairtrading.qld.gov. For full details on the legislation surrounding associations, visit www.legislation.qld.gov.au.

Media contacts: Jo Whitaker 3224 2005/ 0400841523 or Diane Nalatu 3119 0070