Financial Obligations for Not-for-Profit Organisations in Australia

Not-for-profit (NFP) organisations in Australia are subject to financial obligations that vary by state and territory. Committee and board members of NFP organisations must be aware of their financial obligations and potential liabilities. Ensuring compliance with the appropriate regulators, maintaining accurate records, and exercising good governance practices will help protect members and the organisation from financial risk.

This help sheet summarises financial obligations for NFP organisations across different jurisdictions. Please be aware this is general advice and organisations should double check reporting requirements with their regulator.

Incorporated Associations

In most Australian states and territories, incorporated charities registered with the Australian Charities and Not-for-profits Commission (ACNC) are exempt from reporting to the state or territory regulator due to reporting arrangements between the ACNC and local authorities. However, some jurisdictions still require charities to report to both the ACNC and a state regulator.

Tasmania

Key Financial Obligations:

• Maintain accounting records explaining financial transactions and position.
• Prepare and audit (if required) annual financial statements.
• Submit annual returns to the Commissioner for Corporate Affairs (where required) within six months of the financial year’s end.
• ACNC registered charities only need to report to ACNC.

Treasurer Role:

• The model rules include a treasurer to oversee financial affairs.
• While all committee members share financial responsibility, the treasurer plays a key role.

Liability of Committee Members:

Committee members generally have limited liability, but personal liability may arise if actions are not in good faith or violate the Associations Incorporation Act 1964 (Tas).

Australian Capital Territory (ACT)

Key Financial Obligations:

• Hold an annual general meeting (AGM) within five months of the financial year’s end.
• Maintain accurate accounting records.
• The Associations Incorporation Act 1991 (ACT) requires associations to prepare financial statements and present them at the AGM. Depending on size, an audit or review may be required. Annual returns, including financial statements, must be lodged with the Registrar-General.
• ACNC registered charities only need to report to ACNC.

Treasurer Role:

If the model rules are adopted, the committee must include a treasurer.

Liability of Committee Members:

Committee members are generally protected but may face penalties for breaching duties, failing to appoint a public officer within 14 days, or allowing pecuniary gain for members.

Western Australia

Key Financial Obligations:

• Hold an AGM within six months of the financial year’s end.
• Present a financial statement at the AGM.
• Keep minutes of meetings and accurate financial records.
• Return all association documents upon leaving the committee.
• Submit annual financial reports based on their revenue tier under the Associations Incorporation Act 2015 (WA).
  • Tier 1 (under $500,000) reports only to members.
  • Tier 2 ($500,000–$3 million) must submit reviewed financial statements to Consumer Protection WA (DMIRS).
  • Tier 3 (over $3 million) must submit audited financial statements to DMIRS.

• ACNC registered charities only need to report to ACNC.

Treasurer Role:

If the model rules are adopted, the committee must include a treasurer.

Duties include collecting payments, maintaining records, preparing financial statements, and assisting with audits.

Liability of Committee Members:

Members may be personally liable for financial misconduct or negligence.

Penalties may include fines and legal action.

Northern Territory

Key Financial Obligations:

• Hold an AGM within five months of the financial year’s end.
• Keep minutes of meetings and accurate financial records.
• Prepare and audit/review financial statements.
• The Associations Act 2003 (NT) requires all associations to prepare financial statements and present them at the AGM. Tier 1 associations (under $25,000 revenue) need only financial statements, while Tier 2 and Tier 3 associations must submit audited or reviewed reports to the NT Licensing.
• ACNC registered charities only need to report to ACNC.

Treasurer Role:

If the model rules are adopted, the committee must include a treasurer.

Responsibilities include managing payments, maintaining records, and preparing financial reports.

Liability of Committee Members:

Personal liability may arise from financial misconduct.

Penalties include fines, compensation orders, or imprisonment.

South Australia

Key Financial Obligations:

• Hold an AGM within five months of the financial year’s end.
• Maintain meeting minutes and financial records.
• Audit or review financial statements as required.
• Under the Associations Incorporation Act 1985 (SA), all incorporated associations must prepare financial statements and present them at the AGM. Prescribed associations (assets or revenue over $500,000) must lodge audited financial reports with Consumer and Business Services (CBS).
• ACNC registered charities only need to report to ACNC.

Treasurer Role:

No legal requirement, but strongly recommended. The position and specific responsibilities are mentioned in the model rules.

Liability of Committee Members:

Personal liability may arise from fraudulent activity.

Penalties include fines or imprisonment (up to four years).

Victoria

Key Financial Obligations:

• Hold an AGM within five months of the financial year’s end.
• Present financial statements at the AGM.
• Keep minutes of meetings and accurate financial records.
• Appoint a new secretary within 14 days if the position becomes vacant.
• The Associations Incorporation Reform Act 2012 (Vic) requires Tier 1 associations (revenue under $250,000) to prepare financial statements for members but not lodge them externally. Tier 2 ($250,000–$1 million) requires a financial review, and Tier 3 (over $1 million) requires an audit, both lodged with Consumer Affairs Victoria (CAV).
• ACNC registered charities only need to report to ACNC.

Treasurer Role:

Must be elected at the AGM if the model rules are adopted. Duties include managing payments, maintaining financial records, and coordinating financial statements.

Liability of Committee Members:

Civil penalties up to $20,000 for breaches of duty.

Courts may order repayment of financial losses.

Queensland

Key Financial Obligations:

• Hold an AGM within six months of the financial year’s end.
• Audit or verify financial statements.
• Submit financial statements to members at the AGM.
• Maintain proper financial records.
• The Associations Incorporation Act 1981 (Qld) requires Tier 1 ($0–$20,000 revenue) to prepare financial statements for members, Tier 2 ($20,000–$100,000 revenue) to submit a verified report, and Tier 3 (over $100,000 revenue) to submit an audited financial report to the Office of Fair Trading (OFT).
• ACNC registered charities only need to report to ACNC.

Treasurer Role:

Associations must have a treasurer.

Liability of Committee Members:

Penalties for breaches of duty.

Compliance with the Associations Act is crucial.

New South Wales

Key Financial Obligations:

• Hold an AGM within six months of the financial year’s end.
• Submit financial statements at the AGM.
• Maintain financial records and committee meeting minutes.
• Appoint a public officer within 28 days of vacancy.
• Under the Associations Incorporation Act 2009 (NSW), Tier 1 associations (revenue over $250,000) must submit audited financial statements to NSW Fair Trading. Tier 2 associations (revenue under $250,000) must prepare financial statements but do not require audits unless specified by their rules.
• ACNC registered charities only need to report to ACNC.

Treasurer Role:

Required if the model rules are adopted.

Liability of Committee Members:

Personal liability may arise for misconduct or financial negligence.

Companies Limited by Guarantee (CLG)

Key Financial Obligations:

• Comply with the Corporations Act 2001 (Cth) and ACNC regulations if registered as a charity.
• Hold an AGM (not required for ACNC-registered charities but considered best practice).
• Provide financial statements to ASIC or ACNC as required.
• Ensure proper record-keeping and reporting.

Small CLG:

A company qualifies as a small CLG if it:

• Has revenue under $250,000.
• Is not a deductible gift recipient.
• Is not a Commonwealth company or transferring financial institution.

Treasurer Role:

While not legally required, a treasurer is recommended for financial oversight.

Liability of Committee Members:

Personal liability may arise for breaches of fiduciary duty or financial misconduct.

Non-distributing (NFP) Co-operatives

Cooperatives and Incorporated associations have similar reporting requirements. This table outlines the differences.