Changes to the Incorporated Societies Act
The Incorporated Societies Act 2022 (the new Act) was passed on 5 April 2022 but your society doesn’t need to do anything just yet. There is a transition period of several years gives you time to become familiar with, and prepare for, the new regime. Until your society reregisters under the new Act, sometime from October 2023, it continues to operate under the existing Act (the Incorporated Societies Act 1908).
The new law will introduce changes for how some societies prepare their financial statements. New thresholds will determine which societies will also need to have their financial statements audited.
From October 2023, once a society reregisters, it will have to start using External Reporting Board (XRB) accounting standards in its financial statements, unless it qualifies as a ‘small society’.
Below is a summary of the key changes you should know about.
Societies will need to reregister
Societies will have some time to transition and complete their reregistration. The reregistration period will run for 2½ years — from October 2023 to April 2026.
The reregistration process will involve reregistering on the Incorporated Societies Register and providing us with an up-to-date constitution (rules document). Until then, societies will continue to operate under the existing legislation (Incorporated Societies Act 1908).
The regulations being developed now will provide more information about what societies will need to do to reregister. Consultation on the proposed regulations opened on 11 October 2022. You can read the consultation document and have your say on what’s proposed by 5pm on Tuesday 22 November 2022.
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