Dispute resolution procedures and Remuneration disclosure
The Queensland Government has announced law changes for incorporated associations. From 1 July 2024 associations are required to adopt dispute resolution procedures from the model rules or adopt another compliant procedure to their constitution.
This does not mean all associations need to change their constitutions as the model rules will automatically apply.
Should an association wish to create their own grievance procedure then it must comply with section 47A of the Associations Incorporation Act 1981. This means it needs to contain the following:
- allow a member to appoint any person to act on their behalf
- give each party an opportunity to be heard
- allow unbiased mediation if the dispute cannot initially be resolved
- ensure a decision-maker is unbiased if the grievance procedure allows a person to decide the outcome of the dispute.
Remuneration disclosure
From 1 July 2024 remuneration and other benefits paid to management committee members, senior staff and their relatives must be disclosed annually at the association’s AGM. Even if the amount is zero.
The form that disclosure must take is listed below;
- a document required by the Act to be presented at your AGM (e.g. your financial statements or the information you provide to the ACNC)
- a written remuneration statement for the financial year.
If an association did not provide remuneration or other benefits, they are able to state this verbally and have it recorded in the AGM minutes.
Lodgment of Annual Return with the Office of Fair Trading
Finally I thought it worth noting that the Queensland Government website states that “while many incorporated associations will need to lodge an annual return, if you are also registered with the Australian Charities and Not-for-profits Commission (as many associations are) then you may be exempt.” The list of requirements for exemption can be found here on the Government website:
This may assist some Queensland incorporated associations in updating and streamlining their financial reporting and dispute resolution procedures.