New Law for ‘Not for Profit’ Associations and Clubs - Model Rules in the Associations Incorporation Act 2015
February 19, 2026
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There will be few of us whom have never had any involvement with an incorporated association or club. In Western Australia they include groups ranging from the local country football club to our very own Farmers Federation. It is significant to remember that the amazing volunteer fire-fighters who have bravely fought to protect home and hearth throughout this terrible bushfire season are members of a ‘not for profit’ association.
At present many social, sporting and community groups are incorporated under the Associations Incorporation Act 1987 however, this situation is due to change from 1 July 2016 with the proposed introduction of the Associations Incorporation Act 2015. We will briefly examine some of the key changes to the law due to be enacted soon.
MODEL RULES
The new Act will introduce a set of Model Rules designed to help simplify the process for incorporation and set out minimum standards for accountability. Existing associations’ constitutions may need to be modified to successfully reflect the new legal requirements.
The Model Rules are not compulsory but must be adopted if the existing association’s laws do not comply with the new laws.
Compliance will be essential for organisations to demonstrate eligibility to be considered a ‘not for profit’ incorporated association. Associations will have three years from the time the new law commences to ensure that either their rules are consistent with the new law or to adopt the new model rules.
COMMITTEE MEMBERS OBLIGATIONS
The new Act codifies the obligations that already exist within the common law in regards to committee members. They include provision for: the duty of care and diligence; the duty to act in the best interests of the association and for a proper purpose; and the duty of a committee member not to misuse their position or information. Other changes include the introduction of stricter eligibility requirements for those people seeking a seat on management committees.
ACCOUNTABILITY
The new Act will require incorporated associations to demonstrate different levels of financial accountability based upon their revenue. There will be a three tired system which will create different reporting requirements dependent upon the association’s revenue.
Tier 1 associations have revenue of less than $250,000. They can chose to prepare basic financial statements with no independent review or audit. Tier 2 associations are those with revenue from $250,000 to $1,000,000. They must prepare financial reports in accordance with Australian Accounting Standards and these reports must be reviewed by a member of a professional accounting body. Tier 3 associations are those with revenue of more than $1,000,000. These associations must prepare financial reports in accordance with Australian Accounting Standards and reports must be audited by a member of a professional accounting body holding a public practicing certificate.
WHAT NEXT?
The new Act is aimed to improve accountability, minimise administration and compliance costs, and align our State legislation with contemporary laws already existing in other Australian jurisdictions.
To be ready for the changes coming there are a number of things you can do. The first step is to find out more about the changes by viewing and downloading a copy of the Associations Incorporation Act 2015 from the State Law Publisher website. Secondly, check that the details of your association are up to date at ‘Associations Online’ via the Department of Commerce and sign up to their newsletter. Thirdly, start talking to your members about the rule changes you will need to make.
These associations and clubs contribute to rural and farming communities’ vibrancy and engagement with the world around them. For the work of these groups to continue without disruption, it is important that these new laws are given proper consideration.
For further information and guidance contact Phil at (08) 9321 5451
Bailiwick Legal has been honoured to support Forever Wild over the past few years as they delivered one of the most significant conservation land acquisition programs undertaken in Western Australia. Our team assisted Forever Wild with the strategic purchase of four pastoral stations, Narndee , Boodanoo , Meeline and Challa , transactions that now connect three State Reserves and protect more than 12,000 square kilometres of land. To put that scale into perspective, the combined area is approximately five times the size of the ACT and nearly one-fifth the size of Tasmania . Navigating complexity at scale These were not straightforward property transactions. Each acquisition involved: Multiple pastoral leases Layered regulatory and approval pathways Significant operational and on-ground assets Numerous stakeholders across government, industry and land management Our role was to guide Forever Wild through this complexity with clarity, precision and confidence, ensuring each transaction progressed efficiently while managing risk and safeguarding long-term objectives. “ Forever Wild is creating a world-leading model for nature funding that demonstrates we can manage viable, working pastoral stations whilst also restoring and protecting local ecological flora and fauna, and engaging and supporting Indigenous people and local communities. Complex & challenging, but this initiative could literally change the world .” Jessica Brunner - Director, Bailiwick Legal A growing and evolving legal landscape Large-scale conservation acquisitions sit within an emerging and increasingly complex legal field , intersecting land tenure, pastoral regulation, environmental frameworks and commercial considerations. These matters demand a deep understanding of both the legal mechanics and the practical realities of operating in regional and remote Australia. Our team’s experience in agribusiness, pastoral land transactions and regulatory approvals allowed us to support Forever Wild at every stage, from strategic structuring through to completion. Proud to support leadership in nature finance Forever Wild is widely recognised as an industry leader and a steadfast advocate for nature finance initiatives , helping pave the way for greater accessibility and innovation in conservation funding and land stewardship. We are proud to have contributed our relationships, expertise and practical legal insight to help Forever Wild achieve its vision, and to have played a role, however small, in shaping a groundbreaking future for conservation in Australia. At Bailiwick Legal, we value the opportunity to work alongside organisations that are thinking long-term, acting boldly, and creating outcomes that extend well beyond the transaction itself. For assistance with all of your agribusiness needs, contact Bailiwick Legal on 08 9321 5451 or email office@bailiwicklegal.com.au For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.
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