Changes to Qld Incorporated Associations

Immediate Changes – 1 July 2023

From 1 July 2023, financial reporting thresholds will increase, meaning the classification of your Incorporated Association and therefore its’ financial reporting obligations may change from its current level.

The changes are as follows:

• Large associations (previously Level 1)—from current assets or revenue of more than $100,000 to either
• current assets of more than $1 million
• total revenue of more than $500,000
• Medium associations (previously Level 2)—from current assets or total revenue between $20,000 and $100,000 to either
• current assets between $300,000 and $1 million
• total revenue between $150,000 and $500,000
• Small associations (previously Level 3)—from current assets or revenue less than $20,000 to current assets of less than $300,000 and total revenue of more than $150,000.

Changes – 1 July 2024

Grievance Procedure

Incorporated associations will need to either follow the grievance procedure in the model rules or adopt a formal grievance procedure in their own rules through a special resolution.

Incorporated associations can adopt their own grievance procedures at any time before or after the model rules grievance procedure is developed, but they must meet the requirements set out in section 47A of the Act, including:

• allowing a member to appoint any person to act on their behalf
• giving each party involved an opportunity to be heard
• providing for unbiased mediation if the dispute cannot initially be resolved
• ensuring a decision-maker is unbiased if the grievance procedure provides for a person to decide the outcome of the dispute.

Note: The Office of Fair Trading (OFT) cannot settle disputes between incorporated associations and their members.

Remuneration Disclosure

Consistent with entities reporting under ACNC, all Associations will be required at every Annual General Meeting (AGM) any remuneration and other benefits given to

• management committee members
• staff
• relatives of management committee members.

This information may be disclosed as a total value along with the number of people who benefited.

Whilst ‘other benefits’ are not specifically defined within the Association Legislation, it is considered to fall within the definition of ‘compensation’ under the Australian Accounting Standard AASB 124 – Related Party Disclosure.

Compensation includes consideration paid, payable or provided by the Association or on behalf of the Association, in exchange for services rendered to the Association and largely relate to compensation that an Employer would pay to an Employee (such as wages and salaries, through to free/subsidised goods or services). Compensation includes:

·      short-term employee benefits, such as wages, salaries and superannuation contributions, paid annual leave and paid sick leave and bonuses (if payable within twelve months of the end of the period and non-monetary benefits (such as medical care, housing, cars and free or subsidised goods or services for current employees;

·      post employment benefits such as pensions, other retirement benefits, post employment life insurance and post employment medical care;

·      ther long-term employee benefits, including longservice leave or sabbatical leave, jubilee or other longservice benefits, long-term disability benefits and, if they are not payable wholly within twelve months after the end of the period, profit-sharing, bonuses and deferred compensation;

·      termination benefits

Importantly, any failure to disclose this information can incur a penalty for each member of the Management Committee.