New regulations for incorporated associations in Victoria came into effect on 18 November 2023. These new regulations include updates to the model rules which some incorporated associations have adopted as the rules of their association.
Model rules
Key changes to the model rules that have come into effect include:
- Improved dispute resolution processes
- Updated terminology to allow for more flexible use of technology for membership applications and online attendance at general and committee meetings
- Enhanced disclosure requirements for conflicts of interest
Please note that if an association has adopted their own rules or has adopted the model rules with variations, some of the new rules do not automatically apply and the association would need to adopt the changes to the rules should they wish to apply them.
Reporting tiers
In addition, the reporting tiers and revenue thresholds for financial years that end after 1 July 2024 have been revised to align with the Australian Charities and Not-for-profits Commission’s financial reporting thresholds for small, medium and large charities.
The new tier thresholds are:
- Tier One: total revenue less than $500,000 (previously $250,000)
- Tier Two: total revenue between $500,000 and $3 million (previously $250,000 – $1 million)
- Tier Three: total revenue more than $3 million (previously more than $1 million)
Where an association’s financial year ends on or after 1 July 2024, their tier will be determined by the new revenue thresholds with only tier 2 and tier 3 incorporated associations having a statutory requirement for an audit or review of the annual financial statements. The other existing record keeping and reporting requirements remain unchanged, and we recommended that all incorporated associations have an annual review or audit conducted to provide assurance to the members that the financial statements are true and fair.
Other changes
The new regulations also include changes that apply to all incorporated associations:
- Easier processes to voluntarily close an incorporated association with an increased asset ceiling for winding up without appointing a liquidator.
- Updated fees to reduce annual statement fees and increase application fees.
Further information
If you would like to find out more about the changes to the incorporated association rules or would like assistance with checking and updating the rules of your association please contact our team.
Further information on the updated rules can be also be found at: