Vic Legislation To Cut NFP Red Tape
Tuesday, 9th October 2012 at 10:47 am
The new legislation to reduce the regulatory burden and simplify financial reporting, trading, regulatory, registration and contractual responsibilities of more than 37,000 Victorian incorporated associations comes into effect in November.
Consumer Affairs Minister Michael O’Brien says that Not for Profits, from small local sporting clubs, mothers’ groups, support networks and social clubs to large organisations stand to benefit from new legislation designed to cut red tape for incorporated associations.
The new legislation regulating incorporated community and Not for Profit groups in Victoria, called the Associations Incorporation Reform Act 2012, comes into effect on 26 November 2012.
The reform process began in 2010 when Not for Profits were asked to comment on the draft legislation.
The major reforms include new provisions on:
- the duties of committee members
- member rights and responsibilities
- grievance and dispute resolution procedures
- removal of the limitations on trading by an incorporated association, and
- revised (3-tiered) annual reporting requirements and audit thresholds.
Consumer Affairs Victoria (CAV) says it is writing to all associations, key stakeholders and local councils to notify them of the changes, particularly in relation to reporting obligations to Consumer Affairs Victoria.
Throughout October, November and December 2012, Consumer Affairs Victoria says it will conduct more than 40 information sessions for incorporated associations across Victoria.
“It will allow CAV to better protect the rights and interests of members of incorporated associations, funding bodies and the general community,” Minister O’Brien said.
Since the previous Associations Incorporation Act 1981 commenced there have been more than 30 amendments made to the legislation.
“The introduction of the Associations Incorporation Reform Act 2012 involves a re-write and consolidation of incorporated association legislation to make it more user friendly and consistent.”
The Associations Incorporation Reform Act 2012, is the last stage in a process of reform that commenced in 2008 following the State Services Authority Review of the Not for Profit Regulation (2007).
For more details on the information sessions or the changes to the Act, visit the Consumer Affairs Victoria website at www.consumer.vic.gov.au/associations.