What is an Incorporated Association?

When establishing a non-profit organisation, founders can choose from a large range of legal forms. An organisation’s legal structure will determine the types of activities it is legally able to carry out and which government bodies it is required to seek registration from or report to. Incorporated associations are one possible structure of a non-profit organisation. Find out more about the other types of legal structures here.

An incorporated association is a formal legal structure adopted by a large range of non-profit organisations in Australia. Incorporated associations are subject to state or territory incorporation laws and are administered to by a government body within the relevant state and territory. This also means that the operations of an incorporated association tend to be restricted to its home state. Consequently, this legal structure can restrict the growth of an organisation.

An incorporated association has an identity distinct from its founders and members and will continue to exist even if they leave the organisation. It can also be sued, legally lease a property, enter into contracts or hold assets in its name. Incorporation provides some protection for an organisation’s members and/or directors but it also carries additional legal and administrative obligations, such as, accounting, auditing and annual reporting requirements.

There are number of conditions that an organisation wishing to incorporate must meet. These will differ depending on the state/territory in which the organisation seeks to become incorporated, for example, in Victoria the minimum number of members for an incorporated association is five. Below is a list of some of the prerequisites to incorporation in the state of Queensland, according to the body responsible for incorporated associations, Fair Trading Queensland:

“Be a non-profit association
Have at least seven members
Convene a general meeting and pass a motion to incorporate by resolution
Choose an appropriate name
Adopt a set of operating rules
Elect a President, Secretary and Treasurer (two different people must hold the President and Treasurer positions)
Lodge an Association Incorporation Form
Pay the $133.50 fee
Have an address in Queensland where the documents can be personally served.”

For more information on the conditions of incorporation and the government bodies that administer to Incorporated Associations in each state/territory, visit the relevant website below:

Victoria — Consumer Affairs Victoria
News South Wales — NSW Fair Trading
South Australia — Consumer and Business Services
Western Australia — Department of Commerce
Queensland — Office of Fair Trading
Tasmania — Office of Consumer Affairs and Fair Trading
Australian Capital Territory Office of Regulatory Services
Northern Territory Department of Business

This fact sheet is intended as a simple overview. Non-profit law is incredibly complex and there are many components, allowances, restrictions, exceptions and important qualifications that are not described above. Dedicated legal advice should be sought from a legal practitioner before taking action.