Reducing red tape for associations Legislative Changes The ACT Government is proposing to make changes to the Associations Incorporation Act 1991 to modernise it, including clarifying obligations for Committee members, trade, privacy and dispute resolution. These changes are included in the Red Tape Reduction Legislation Amendment Bill 2018 and follow feedback from stakeholders in 2017 that the Act would work better if these areas were updated or clarified. A summary of the changes are outlined below. The changes, if passed, will take effect from 1 July 2019. Model Rules To support the legislative changes, the ACT will also be consulting on new Model Rules in 2018-19. Online reporting To support these changes, Access Canberra will be implementing changes to enable associations to report online. Further information To comment on the proposed changes or to find out more, email: regulatoryreform@act.gov.au Proposed changes Issue Proposed Change Benefit Legislation reference Copies of documents from Access Canberra Instead of inspecting a document, a person can request a copy or extract of a document This reduces confusion in accessing documents, which are now held electronically by Access Canberra Section 11 - Update Confidentiality of contact details Change from address to contact details This recognises email and telephone number as well as address Section 13 - Update Restrictions on trading Remove reference to trading Associations can trade provided it is: Not for the financial benefit of its members Consistent with their overall objective Section 14 - Update Requirement for a common seal No requirement if a document is signed by two members of a committee Modernises requirements in Act Section 22 - Update
Issue Proposed Change Benefit Legislation reference Restrictions on access to documents Provides criteria for which a committee may restrict access to documents New section Removal of a public officer Makes criteria for removing a public officer related to their ability to perform the role Consistent with human rights Section 64 - Update Process for resigning as a committee member Requires resignation to be in writing to the public officer Provides greater clarity on process for resigning Section 65 - Update Disclosure of personal interest Updates disclosure of material personal interest Brings the Act up to modern requirements Section 65 - Update Dispute resolution procedure Requires an association to have a procedure for dispute resolution Section 65 - Update Restrictions on access to personal information Provides for restrictions to be placed on access to information Enhances privacy protections New Charities reporting public officer changes Exempts ACNC-charities from reporting public officer to Access Canberra Further streamlines reporting for ACNC charities New Duties of committee members Outlines the following duties in the Act: Duty of care and diligence Duty of good faith and proper purpose Proper use of position Proper use of information Brings the ACT in line with other jurisdictions Makes clear the existing responsibilities New Register of members Provides for restrictions to be placed on access to personal information Enhances privacy protections Section 67 - Update Auditor Expands options for being a qualified auditor for purposes of Act Reduces administrative costs Part 5 - Update
Issue Proposed Change Benefit Legislation reference Financial accounts Brings tiers for financial reporting from regulations into the Act and makes annual revenue the sole criteria for determining a small, medium or large association Makes it easier to understand reporting requirements No change to revenue amounts: Small – less than $400,000 Medium – less than $1m Large – over $1m New One-off changes in annual revenue Organisations can apply for an exemption for oneoff changes in annual revenue in a particular year Enables associations to plan with certainty New Small associations No change to requirements Change of language from audit to review Makes it clear that the review process for a small association is not an audit process Part 5 - Update Medium associations Introduces the option for medium associations to have the option of professionally reviewed or audited financial statements Enables medium associations to determine most suitable approach for their organisation Reduces administrative costs Part 5 - Update Large associations No change to requirements