Members of 35,000 incorporated associations in NSW will benefit from improved accountability and broader participation thanks to new laws commencing on 1 July 2010.

Fair Trading Minister Virginia Judge said the Associations Incorporation Act 2009 and the Associations Incorporation Regulation 2010 governed community services and groups such assporting and service clubs, and non-government organisations and interest groups.

“These laws deliver simple, low-cost operating guidelines that will better support the operation and accountability of small, non-profit and non-commercial organisations,” Ms Judge said.

Ms Judge said key benefits of the new laws include:

• Modernised processes such as scrapping the archaic requirement to attach a Common Seal to documents,
• Introducing postal ballots and allowing meetings to be held in two or more venues to encourage broader participation, particularly in rural associations and
• Improved financial stability – large associations with gross annual receipts of more than $250,000, or current assets exceeding $500,000 will be required to undertake a financial audit.

Ms Judge said the NSW Government had developed the new laws following extensive consultation with peak community, social and sporting organisations.

Football NSW General Manager Ian Holmes expressed the organisation’s appreciation and support for the new Act on behalf of its 786 member clubs.

“The modernised Act has been the result of extensive consultation by the Government with many community based organisations, including Football NSW,” Mr Holmes said.

“The new Act has introduced reforms to assist sporting, cultural and community groups with streamlined processes and a good corporate governance framework.

“It is legislation built around the environment in which so many community bodies operate in the 21st century and is mindful that such organisations substantially rely upon volunteers within the community.”

Ms Judge said the current ‘model rules’ would be replaced with a more up to date ‘model constitution’ for associations.

“The new laws have been carefully designed to make the transition as smooth as possible,” she said.

“An association’s current rules will continue to apply until such time as it implements its new constitution.

“NSW Fair Trading will conduct a Statewide education and information campaign to help associations clearly understand what the new reforms mean for them.”

Alison Peters, Director of the Council of Social Services of NSW (NCOSS), reinforced the need for comprehensive resourcing of not for profit associations to enable them to comply with the requirements of the new Act.

“NCOSS has always promoted the highest standards of governance to its members and the broader sector; good governance and practice are critical to the delivery of quality services,” Ms Peters said.

“NCOSS looks forward to partnering with NSW Fair Trading to ensure associations are aware of their responsibilities under the Act. A revised edition of the Associations Handbook, the ‘bible’ for small not for profit associations in NSW, will be our first priority,” she said.

Copies of the Act and Regulations, along with fact sheets, brochures and information about the changes will be available at this website from 1 July.

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