Starting An Incorporated Association

What it means to be an Incorporated Association

In its simplest terms, an incorporated association means an association incorporated under the South Australia Associations Incorporation Act 1985 (Version: 22.2.2018 cited in this document).

This Act outlines the rules and provisions legislated by the South Australian Government for the administration and control of associations incorporated under The Act.  Essentially the role of The Act is to ensure incorporated associations are run impartially, transparently, equitably, and most importantly, free from self-interest from any of its members or associates of those members.

Inability to distribute profits to members is clearly outlined in section 55 of The Act

55—Prohibition against securing profits for members

(1) Unless the Commission otherwise approves, an incorporated association must not conduct its affairs in a manner calculated to secure a pecuniary profit for the members of the association or any of them, or for associates of the members or any of them.

(2)  Unless the Commission otherwise approves, an incorporated association must not make a payment from its income or capital, or dispose of any of its assets in specie, to the members of the association or any of them, or to associates of the members or any of them. 


(3)  Subsection (2) does not apply;

1. a)  to reasonable remuneration of a member of the association for work done by the member for or on behalf of the association; or 


(b)  to any payments or dispositions that are incidental to activities carried on by the association in accordance or consistently with its objects. 


(4)  An officer of an incorporated association who is knowingly concerned in or party to a contravention of subsection (1) or (2) is guilty of an offence. 
Maximum penalty: $5 000 or imprisonment for one year. 


For the purposes of this Act, a person is an associate of another person if—

(a)  they are partners; or

(b)  one is a spouse, domestic partner, parent or child of the other; or

(c)  they are both trustees or beneficiaries of the same trust, or one is a trustee and the other is a beneficiary of the same trust; or

(d)  one is a corporation and the other is a director of the corporation; or

(e)  one is a corporation and the other is a person who has a legal or equitable interest in five per cent or more of the share capital of the corporation; or

(f)  they are related bodies corporate within the meaning of the Corporations Act 2001 of the Commonwealth; or

(g)  a chain of relationships can be traced between them under any one or more of the above paragraphs.