To ensure regulatory requirements are proportionate to the size, complexity and risk profile of an organisation, it may be appropriate for very large or complex associations to operate under a corporate regulatory framework designed for higher risk entities. This approach supports a simple, low-cost model for small community organisations while ensuring stronger governance oversight where significant financial, operational or public interest risks exist.
The Act covers varying types of associations, from small groups earning less than $25,000 to large organisations with over $500,000 in gross receipts. It applies to both non‑trading and trading associations. As these associations have very different risk levels, larger and more complex bodies may need a different form of incorporation.
Associations can voluntarily change their structure under section 56 of the Act, and the Director may,
in some cases, require a change under section 63 of the Act. To strengthen these provisions, statutory criteria could be introduced so that associations with remarkably high revenue or assets, operations across multiple jurisdictions, or significant public‑funding risk are considered for, or directed to, transition to a company limited by guarantee under the Corporations Act 2001 (Cth), overseen by ASIC.
