From 1 July 2024, changes to the Incorporated Associations Act 1981 (Qld) ("the Act") will come into effect, which requires associations to have an internal dispute resolution process and also imposes new remuneration disclosure requirements.
These changes may necessitate amendments to the governing rules of many associations in Queensland, so it is important that you understand these changes and the implications that they may have for your association from 1 July 2024.
Grievance Procedure Updates
From 1 July 2024, incorporated associations must adopt a grievance procedure policy for internal conflicts. Associations may either:
- adopt the model rules grievance procedure put together by the Office of Fair Trading; or
- adopt another procedure that complies with section 47A of the Act.
If your association does not have an internal dispute resolution procedure and you wish to follow the model rules grievance procedure, you do not have to make any changes to your rules – the Model Rules will automatically apply.
If you have an existing dispute resolution procedure that complies with section 47A, then you can continue to follow it. If your existing procedure is not compliant, it will be invalid from 1 July 2024, and the Model Rules will automatically apply. If you want to modify an existing procedure, or your association wants to adopt a compliant procedure other than the Model Rules, you should do so before 1 July 2024.
We recommend that all management committees should consider this change at a meeting as soon as possible, to determine the best course of action. The Model Rules will not always be appropriate for every association, and it may be more prudent to adopt a custom procedure. Our team are willing and able to assist by providing your incorporated association with advice regarding an appropriately tailored grievance procedure that is suitable for your association's needs and compliant with the updated requirements of the Act.
Remuneration Disclosure Updates
From 1 July 2024, all incorporated associations will be obligated to disclose remuneration and other benefits at their Annual General Meeting (AGM), including remuneration and benefits given to management committee members, senior staff and their relatives, even if the amount to report is zero. This disclosure may be done with a single, collective number, but it must include the number of people who benefited.
This change will apply to all incorporated associations, even if they are registered with the Australian Charities and Not-for-profits Commission and are exempt from submitting financial reports. Disclosure must be in an approved written form unless the total is zero, in which case the disclosure may be verbal, but must be recorded in the AGM minutes. Failure to comply with the new disclosure rules can incur a penalty for each member of the Management Committee.
Summary
These changes present an opportunity for incorporated associations to review their governance procedures and structure. Our team has a wealth of experience in advising non-profits, and can assist as required – please reach out to our Commercial + Property Team for advice.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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