Background
The Associations Incorporation Review
The present Associations Incorporation Act 1987 came into operation in Western Australia in 1988 and replaced the original 1895 Act. The Consumer Protection Division of the Department for Commerce (“Consumer Protection”) administers the Act.
The former Minister for Consumer Protection, Hon Michelle Roberts, MLA, tabled a Green Bill in the Legislative Assembly in 2006.
Copies of that Green Bill can be found on the Parliamentary website.
Since then, wide-ranging changes in high-level Consumer Protection policy, both at State and Federal level, have impacted on the finalisation that process. It has been necessary to revisit the Bill in order to prevent overlapping or inconsistent requirements which could introduce unnecessary costs to the sector.
These developments include the commencement in January 2011 of the Australian Consumer Law and the new Fair Trading Act 2010 (WA) as well as amendments to the financial reporting and accountability provisions in the Commonwealth Corporations Act 2001. In addition, in December 2011 the Commonwealth released draft legislation to establish the Australian Charities and Not-for-profits Commission (ACNC), which will impose new financial reporting and accountability provisions on not-for-profit entities, including some associations.
Associations do not have to be incorporated, however incorporation gives them the advantage of being recognised at law as separate legal entities. On the other hand, members of unincorporated associations could have to meet the liabilities of the association.
Associations can seek incorporation under other State or Commonwealth legislation.
In Western Australia, associations may also seek incorporation under the:
- Companies (Co-operatives) Act 1943 (as co-operatives).
- Commonwealth Corporations Act 2001(as a not-for-profit body).
- Commonwealth Aboriginal Councils and Associations Act 1976.