Incorporated Associations

The new Associations Incorporation Act 2009 - Will your incorporated association require an audit ?

New legislation (Associations Incorporation Act 2009 and Associations Incorporation Regulation 2010) covering incorporated associations, came into effect on 1st July 2010. It replaces the old Associations Incorporation Act 1984.

One of the main changes is found in Part 5 of the new act and concerns financial reporting. Incorporated associations will now be classified as Tier 1 (large associations) or Tier 2 associations.

Tier 1 associations will have to be audited and also prepare financial statements to be lodged with the Fair Trading department. Under the Regulations, a Tier 1 association will be one whose total yearly revenue exceeds $250,000 or whose current assets at year end exceed $500,000.

The financial reporting requirements for Tier 2 associations are less onerous. There is no requirement for these associations to be audited, although the constitutions of many incorporated associations already require an audit of the financial statements to help safeguard the assets of the association.

Byrons are specialists in the audit of incorporated associations and other not for profit organisations. If we can be of assistance in the audit of your incorporated association, or if you require further information concerning the new Associations Incorporation Act 2009, please contact our audit partners, Jeff Matchett jeffm@byrons.com.au or Elizabeth Perez elizabethp@byrons.com.au or by phone on 02 8745 3433