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Associations Incorporation Regulation 2016 

What is this about? 

The NSW Government remade the Associations Incorporation Regulation 2010 because the Regulation was to be automatically repealed on 1 September 2016 by the Subordinate Legislation Act 1989 and to also support amendments to the Associations Incorporation Act 2009 resulting from the statutory review of the Act.

For information about the statutory review of the Act go to the Associations legislation page.

The Regulation provides the administrative detail to support the operation of the Act. The Act provides small-scale, non-profit and non-commercial organisations with a simple and low-cost means of becoming a legal entity, and also establishes a registration scheme for these organisations. The regulatory regime aims to ensure corporate governance and financial accountability of registered associations.

What has happened so far? 

As the Regulation needed to be remade, the Associations Incorporation Regulation 2016 was developed to replace the existing Regulation. In July 2016, NSW Fair Trading released the draft Associations Incorporation Regulation 2016 and accompanying Regulatory Impact Statement were released outlining proposed changes to the Regulation for public comment.

Consultation closed on 29 July 2016. All comments on the draft Regulation were considered before the Associations Incorporation Regulation 2016 was finalised.

The final Regulation has been published on the NSW legislation website.

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What are the changes? 

The changes to the Regulation are as a result of the statutory review of the Act.

The changes include:

  • a new provision specifying that financial records and minutes of meetings may be kept electronically and providing that financial records kept for at least 5 years, where there was previously no time period specified
  • amending the model constitution to:
    • provide for the maximum number of consecutive terms of office of any office-bearers on the committee (if specified)
    • providing a non-distribution and wind-up clause 
    • take into account electronic communications and recognise the use of technology at meetings 
    • provide for electronic ballots in addition to postal ballots 
    • address committee vacancies regarding the solvency of committee members
    • clarifying that the committee may refuse a member’s request to inspect or obtain a copy of the associations records:
      • relating to confidential, personal, employment, commercial or legal matters or 
      • where giving access may be prejudicial to the interests of the association  
  • adding to the list of unacceptable names for associations
  • providing for electronic and postal voting, where this is permitted by an association’s constitution 
  • updating the fee schedule: the fee for lodging the annual statement of financial affairs has reduced by 18.5% for Tier 2 [small associations] (gross receipts less than $250,000 and current assets less than $500,000) and has increased for Tier 1 [large] associations. In general, fees have been revised to reflect the amount of work required to process the documentation
  • simplifying and updating certain requirements.

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Key dates 

The Associations Incorporation Regulation 2016 commenced on 1 September 2016 at the same time that the amendments to the Act commenced.

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Submissions 

View the submissions received in response to the public consultation on the remake of the Associations Incorporation Regulation.

Important documents