Associations Incorporation and Other Legislation Amendment Bill 2019
Plain English Summary
Overview
This bill modernises Queensland's Associations Incorporation Act 1981 and Collections Act 1966 to improve how the state's 22,660 incorporated associations and thousands of charitable entities are governed and regulated. It introduces clearer governance duties for committee members, removes duplicate reporting requirements for organisations already registered with the national charities commission, and gives associations better tools for resolving disputes and managing financial difficulties.
Who it affects
Community groups, sporting clubs, charities, and other not-for-profit organisations that are incorporated in Queensland, along with the volunteers who serve on their management committees. ACNC-registered entities benefit most from reduced reporting requirements.
Key changes
- Management committee members and officers now have statutory duties of care, good faith, and disclosure of conflicts of interest, with penalties of up to 60 penalty units
- Incorporated associations registered with the ACNC can be exempted from duplicate Queensland financial reporting, ending the requirement to submit the same information to both State and Commonwealth regulators
- All associations must have an internal grievance procedure including mediation before taking disputes to the Supreme Court
- Associations in financial difficulty can now appoint a voluntary administrator under the Corporations Act framework, rather than going directly to the Supreme Court
- Associations with no debts or liabilities can apply to cancel their incorporation without a formal winding up process
- Associations can now hold meetings using communications technology without needing specific rules to allow it
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee26 Nov 2019View Hansard
Referred to Legal Affairs and Community Safety Committee
The Education, Employment and Small Business Committee examined the Associations Incorporation and Other Legislation Amendment Bill 2019 and tabled its Report No. 30 on 21 February 2020. The committee recommended the bill be passed. The committee raised concerns that the explanatory notes did not adequately justify the extension of investigation powers to the Office of Fair Trading under the Fair Trading Inspectors Act 2014, noting this fell short of offering justification for the breaches of fundamental legislative principles involved. The Queensland Government responded with detailed clarification of why the existing powers under the repealed Financial Institutions Code 1992 were inadequate and outlined the safeguards built into the Fair Trading Inspectors Act.
Key findings (5)
- The committee found the bill's reforms to the governance of incorporated associations were generally sound and recommended passage.
- The committee raised concerns that the explanatory notes did not sufficiently justify extending Fair Trading Inspector powers to incorporated associations, noting potential breaches of fundamental legislative principles.
- The Government clarified that existing investigation powers under the repealed Financial Institutions Code 1992 were outdated and not fit for purpose in the context of incorporated associations.
- Approximately 17 per cent of Queensland incorporated associations are registered with the Australian Charities and Not-for-profits Commission, making state-level regulation important for the majority.
- The Fair Trading Inspectors Act includes safeguards such as requiring identification, consent procedures for entry, and compensation provisions for property damage, which would apply in modified form under the bill.
Recommendations (1)
- The committee recommends that the Bill be passed.
Committee report tabled
▸Second Reading16 June 2020View Hansard
Vote on a motion
Vote on the government's business program motion limiting debate time to two hours for the cognate debate of the Associations Incorporation and Other Legislation Amendment Bill and the Co-operatives National Law Bill. The LNP opposed the time limitation.
The motion was agreed to.
A formal vote on whether to accept a proposal — this could be the bill itself, an amendment, or another motion.
▸Show individual votesHide individual votes
Ayes (46)
Noes (42)
▸13 members spoke6 support7 mixed
As Attorney-General, introduced and commended the bill, arguing it reduces regulatory burden for 22,000 incorporated associations, eliminates duplicate reporting with the ACNC, introduces modern governance obligations and grievance procedures, and supports associations experiencing financial distress.
“The associations bill proposes amendments to the benefit of Queensland's not-for-profit sector. These amendments reduce the regulatory burden for incorporated associations and charitable entities.”— 2020-06-16View Hansard
Announced the opposition would not oppose the bill but foreshadowed opposing clause 31, which imposes corporate director-style duties on volunteer management committee members without safe harbour protections. Criticised lack of consultation and missed opportunities to modernise the Collections Act.
“Here we are holding volunteers on management committees and incorporated associations to a higher standard than company directors with all the resources, all the capability, all the educative opportunities.”— 2020-06-16View Hansard
Spoke in support of both bills, noting the important roles cooperatives and incorporated associations play in Queensland's economic, social and cultural life, and welcomed the reforms to improve internal governance.
“Both cooperatives and incorporated associations play vital, though differing, roles in Queensland and, separately, they respond to economic, social and cultural needs and goals.”— 2020-06-16View Hansard
Supported the bills except for clause 31, which he argued imposes onerous corporate-style responsibilities on volunteer committee members. Raised concerns about inadequate consultation and highlighted the importance of incorporated associations to rural communities.
“I certainly support my side's foreshadowing that we will be opposing clause 31 of the bill, which relates to the onerous reporting requirements this bill will impose on the mums and dads, brothers and sisters who run the local golf club.”— 2020-06-16View Hansard
Declared her position as president of a local incorporated association and supported the bill's reduction in reporting burdens, particularly the ACNC exemption and the ability to conduct meetings via communications technology during COVID-19.
“Any attempts to reduce reporting burdens are welcomed.”— 2020-06-16View Hansard
Supported the bills except clause 31, arguing it imposes ludicrous corporate director-style duties on volunteer management committee members. Highlighted the impact on small organisations like the Lockyer Valley Fauna Sanctuary.
“The community minded men and women who make daily sacrifices to fight for the betterment of their communities are not corporate elites and this Labor government should not allow them to be treated as if they are.”— 2020-06-16View Hansard
As committee chair, spoke in support of the bill's reforms to modernise the regulatory framework for associations, including enabling meetings via technology, removing the common seal requirement, and introducing grievance procedures.
“Anything we can do to make the establishment and running of these entities easier for the volunteers who invariably run them is a positive and welcome reform.”— 2020-06-16View Hansard
Criticised the associations bill for increasing regulatory burden on volunteer-run associations at a time when COVID-19 was already placing enormous strain on them. Opposed clause 31 for creating onerous corporate-style duties without safe harbour protections.
“We agree with the view of the Queensland Law Society that the amendments shift the position of an incorporated association firmly out of the middle ground into the corporate regime.”— 2020-06-16View Hansard
Supported the bill's reforms to improve governance, reduce regulatory burden and streamline processes for Queensland's not-for-profit sector, particularly during the COVID-19 pandemic.
“Improving governance and reducing the burden on these local volunteers is so important to ensure the ongoing sustainability of our local organisations.”— 2020-06-16View Hansard
Stated the LNP would not oppose the bills but strongly opposed clause 31, arguing that fines of up to $8,000 for management committee volunteers would deter good people from joining community organisations.
“If this provision is allowed to proceed, it puts at risk the appetite and likelihood people will want to join an incorporated association—community minded people who want to sign up to do good.”— 2020-06-16View Hansard
As a former lawyer who provided pro bono advice to associations and cooperatives, supported both bills as a long-overdue review of the law governing these organisations.
“In my former life as a lawyer, with a small practice in Lowood, I frequently provided pro bono legal advice to a wide range of associations and cooperatives. I am aware that the law associated with associations and cooperatives is long overdue for review.”— 2020-06-16View Hansard
Raised concerns about the proposed dispute resolution procedures being misused, and the powers of fair trading inspectors to enter premises without consent. Supported provisions allowing digital meetings and enabling persons with past convictions to serve on management committees after a rehabilitation period.
“The proposal to allow a fair trading inspector to enter the premises of an association and seize property without the association's consent and without a search warrant is highly unusual considering the Australian Securities and Investments Commission do not even have these powers themselves.”— 2020-06-16View Hansard
Welcomed some aspects of the bill, including penalty provisions and ACNC duplication removal, but criticised the failure to address dispute resolution beyond the Supreme Court and the more onerous insolvency provisions compared to the Corporations Act. Noted he had raised these issues with the Attorney-General five years earlier.
“Five years and six days ago I wrote to the Attorney-General in order to raise concerns about various issues with the Associations Incorporation Act. Today, five years and six days later, I suppose it is better late than never to receive a reply.”— 2020-06-16View Hansard
Assent date: 22 June 2020