Pending reforms for Victorian incorporated associations
** Note - This legal update is no longer current. For more recently published information and resources on new laws for incorporated associations, please go to www.pilch.org.au/newlawsincassoc/ **
New laws for Victorian incorporated associations come into effect on 26 November 2012.
In 2009 and 2010 the Victorian Government passed legislation which made a number of changes to the Associations Incorporation Act 1981 (the legislation that regulates all incorporated associations in Victoria). The changes never came into effect.
More recently, the Victorian Parliament passed the Associations Incorporation Reform Act 2012. This new Act incorporates the changes previously passed, in a 're-write' of the Act. While the name of the new Act and some other provisions are slightly different, the key changes made by the 2009 and 2010 legislation (set out below) will come into force as planned.
Draft regulations and proposed new model rules have been released for public consultation, and will also come into effect on 26 November 2012. Go to our page on the draft regulations and proposed model rules to find out more. You can make a submission to CAV providing your thoughts on the proposals. Submissions must be lodged by 18 October 2012.
Please Note: The changes to the law that are discussed on this page have had a delayed implementation. This means the changes are not yet applicable. The new Act will commence operation on 26 November 2012.
What are the key changes to the Associations Incorporation Act?
The reforms cover the following areas:
- Codification of duties for office holders
- Defences for office holders
- Indemnity for office holders
- Tiered reporting procedures
- Merger of Public Officer / Secretary
- Removal of the prohibition on trading
- Use of technology at committee and general meetings
- New matters that must be provided for in an association's rules
- Removal of committee members
- Conflicts of interest and committee members
- Clarification of the rights of members
- Disciplinary action against a member
- Grievance procedures
For more detail, go to:
What do these changes mean for our community organisation?
These changes will only affect Victorian incorporated associations
If your community organisation is an incorporated association established in Victoria (that is, your organisation has been incorporated under the Victorian Associations Incorporation Act 1981), your organisation will be required to comply with these new laws once they come into effect.
For example, all of your Committee of Management members will need to be aware of their new duties, and your financial reporting practices may have to be changed as a result of the proposed three-tiered reporting regime. The changes may require many organisations to amend their rules to bring them in line with the new requirements.
New 'Model Rules' are being drafted
Given these significant changes to the legislation for incorporated associations, there will be a re-drafting of the Model Rules, to ensure that they reflect the new laws. Find out more about the new model rules here.
How can I find out more about the upcoming changes?
PilchConnect is closely tracking the progress of these reforms and considering their impact on your organisation. To stay informed of developments, subscribe to our e-bulletin by entering your email address at www.pilch.org.au/subscribe. If you would like to talk to us about the changes, please call PilchConnect on 03 8636 4400.