Determine your tier each year. At the end of each financial year, calculate the association’s gross receipts (total revenue in the income and expenditure statement) and current assets (assets held on the last day of the previous year, excluding real property and depreciable assets but including bank accounts, stocks, debentures). Compare against the thresholds: gross receipts $500,000 or less AND current assets $1,000,000 or less = Tier 1; otherwise Tier 2. Apply the correct thresholds for the year - for 2023-24 and earlier, use the old thresholds ($250,000/$500,000). For 2024-25 onward, use the new thresholds. If the association is ACNC-registered and meets the conditions in ss 13A or 14A, it may be exempt from the financial reporting requirements under the Act for that year. Otherwise, prepare the appropriate statements.
Adopt or tailor the model constitution. Schedule 3 provides a comprehensive model. Associations can adopt it in full by reference, or customise it. Any customisation must comply with the Act (e.g., cannot permit profit distribution to members - see s 40 of the Act). If the association uses a different constitution, ensure it addresses the financial year, quorum, voting, committee composition, and other mandatory matters. Register any changes under s 10 of the Act, paying the prescribed fee (0.50 fee units for changes to objects or constitution, 1.00 fee units for name change if not reserved).
Conduct ballots strictly in accordance with Schedule 2. If the association decides to hold a postal, electronic or combined ballot (for example, to pass a special resolution without a physical meeting), follow the procedures precisely. Appoint a returning officer who is not a committee member. Prepare a voting roll. Distribute materials at least 14 days (21 for special resolutions) before closing. For postal ballots, include a return envelope with the member’s name and address on the reverse. For secret ballots, use a “Ballot Paper” envelope. For electronic ballots, ensure the member’s identity cannot be ascertained from the ballot paper. For combined ballots, provide both sets of materials. Count votes promptly and minute the result. Keep ballot records secure for at least 8 weeks, but consider keeping them longer to comply with the general record-keeping obligation.
Maintain registers and records. Keep a register of members (with names and at least one address, date of membership, date of cessation). Keep a register of committee members that includes the specific office held (president, vice-president, secretary, treasurer) and the dates of election/appointment and cessation (s 10). Keep minutes of all committee meetings and general meetings. Keep financial records for at least 5 years (s 15). Ensure records can be converted to hard copy if electronic.
Lodge financial documents on time. Tier 1 associations must lodge financial statements, auditor/reviewer reports, and committee reports under s 45 within 1 month of the AGM (or as extended). Tier 2 associations must lodge a summary under s 49 within the same timeframe. Pay the prescribed fee with lodgment. If late, pay the additional late fee. If the association is exempt under ss 13A or 14A, no lodgment is needed, but retain evidence of ACNC compliance.
Choose a name carefully. Before applying for registration or a name change, check the name against Schedule 1. Do not use a name that resembles a registered business name, a company, a co-operative, a criminal organisation, or suggests a connection with government, royalty, or a specific person without authorisation. Avoid prohibited words like “co-operative”, “credit union”, “GST”, “Oxfam”, “stock exchange”. If the name is similar to an existing registered name, obtain consent or show the public will not be misled. Reserve the name first for 0.50 fee units.
Pay fees correctly. Look up the current fee unit amount on the NSW legislation website (the editorial note in Schedule 4 provides recent figures). Multiply the fee units in Schedule 4, Part 1 by the fee unit amount, then round to the nearest dollar (50 cents down). Pay the correct amount with the application. If the association is suffering financial hardship or has special circumstances, apply to the Secretary for a waiver or reduction under s 20.
Understand the ACNC exemption pathway. If the association is a registered charity with the ACNC and reports individually (not as part of a group), check whether all required statements and reports have been given and are publicly available. If so, the association is exempt from producing separate Tier 1 or Tier 2 financial documents under the Act for that year. However, the association must still comply with the ACNC’s requirements. If the association later ceases to be ACNC-registered, or reports as part of a group, the exemption no longer applies from the next financial year.
Seek advice for complex situations. Amalgamations, transfers of registration to another jurisdiction, and special resolutions requiring Secretary approval involve additional documents and fees. For example, an application for a direction about how a special resolution may be passed costs 0.85 fee units (Sch 4 item 8). The application for a transfer of registration declaration requires declarations about creditors and continuation of legal personality (s 9). Always check the latest version of the Regulation, as fee amounts change annually, and new amendments may introduce further exemptions or requirements.