Audit of Incorporated Associations – Victoria (Sports clubs etc.)

Under the Associations Incorporation Reform Act 2012 (the Act), an association falls within one of three tiers according to its total revenue.


Tier one – revenue is $250,000 or less.  Tier one associations do not have any additional reporting requirements. They do not need to have their financial statements externally reviewed or audited unless:

  • its rules state otherwise (audit or review)
  • a majority of members vote to do so at a general meeting (review only), or
  • Consumer Affairs Victoria directs them to do so (review only).

Tier two- revenue more than $250,000 but less than $1million.  Tier two associations must have their accounts reviewed by an independent accountant. The accountant’s report of the review must be presented to members at the annual general meeting. Tier two associations do not have to audit their accounts unless its rules require an audit.


Audit of Companies Limited by Guarantee

Prior to the commencement of the Corporations Amendment (Corporate Reporting Reform) Act 2010, all companies limited by guarantee had to prepare a financial report which required an audit, because they were classified as public companies.


  • Tier 1 (annual revenue less than $250,000 and does not have deductible gift recipient status) – has no obligation to prepare a financial report or have its financial report audited, unless required to do so under its constitution or a member or ASIC direction;
  • Tier 2 (annual revenue is $250,000 or more but less than $1 million or that have deductible gift recipient status) – must prepare a financial report which they could elect to be reviewed rather than audited