Incorporated Associations Act 2009

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The new Associated Incorporations Act 2009 - Will your incorporated association require an audit ?

New legislation (Associations Incorporation Act 2009) covering incorporated associations was passed through the NSW Parliament in April 2009. Its provisions are expected to come into effect in late 2009, although the date it becomes operative has not yet been determined. It will replace 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 following all Australian Accounting Standards. Under the Act, a Tier 1 association will be an association whose gross receipts or current assets exceed a prescribed amount. Unfortunately the prescribed amount has not yet been determined, but it is unlikely to be below $200,000.

The financial reporting requirements for Tier 2 associations will be similar to the current requirements. There is no requirement for these associations to be audited, and the financial statements do not need to be prepared following all Australian Accounting Standards (although the Act does require the financial statements to be true and fair).

Note that 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 partner, Jeff Matchett on 02 8745 3433 or jeffm@byrons.com.au < back to Services