Legislative changes for incorporated associations
Legislation changes have lifted tier thresholds for incorporated associations.
This gives more flexibility in who can audit financial statements for associations in the tier one category.
Annual accounts must be audited by someone eligible for the association’s tier.
These changes are in-line with a risk-based approach to regulation, focusing on high-risk activities and reducing requirements for low-risk activities.
Association tier changes
Tier 1
No gaming machine licences and non-trading associations only.
Includes associations with gross income of up to $150,000 and gross assets of up to $300,000.
| Previous | New |
|---|---|
Gross receipts: up to $25,000 Gross assets: up to $50,000 | Gross receipts: up to $150,000 Gross assets: up to $300,000 |
Audit requirements
Accounts must be audited by someone who is not:
- a member of the association
- a partner (spouse, de facto or business partner), employer or employee of a member of the association
- a partner of an employee of a member of the association.
Tier 2
Non-trading associations only.
Includes associations with gross receipt income up to $500,000 and gross assets up to 1 million
| Previous | New |
|---|---|
Gross receipts: up to $250,000 Gross assets: up to $500,000 | Gross receipts: up to $500,000 Gross assets: up to 1 million |
Audit requirements
Accounts must be audited by either:
- a member of an accountants’ body
- a person approved by the director under the Associations Act 2003.
Tier 3
Non-trading associations or trading associations.
Includes associations with gross receipts over $500,000 or gross assets over 1 million.
| Previous | New |
|---|---|
Gross receipts: exceeding $250,000 Gross assets: exceeding $500,000 | Gross receipts: exceeding $500,000 Gross assets: exceeding 1 million |
Audit requirements
Accounts must be audited by either:
- a person who is either certified for public practice by an accountants body
- a person registered as an auditor under the Corporations Act 2001 or approved by the director under the Associations Act 2003.
More information
Call Associations and Compliance on 1800 193 111 by selecting prompt 4.
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