Financial reporting exemptions

Eligible reporting units may apply for a certificate under section 269 of the Fair Work (Registered Organisations) Act 2009 (the RO Act). If obtained, the certificate reduces a reporting unit's reporting requirements under Part 3 of Chapter 8 of the RO Act. This part of the Act sets out the requirements relating to:

• financial records
• accounting
• auditing.

A reporting unit may be eligible to apply for a certificate under section 269 if:

• its financial affairs are encompassed by the financial affairs of an industrial association (the associated state body)
• the associated state body:
  • is registered or recognised under a prescribed state act (see below)
  • has substantially the same members as the reporting unit
  • has officers who are substantially the same as designated officers in relation to the reporting unit.

Prescribed state acts

The prescribed state acts are the:

• Fair Work Act 1994 (SA)
• Industrial Relations Act 1979 (WA)
• Industrial Relations Act 1984 (Tas)
• Industrial Relations Act 1996 (NSW)
• Industrial Relations Act 1999 (Qld).

Required additional documents

The application for a section 269 certificate must include:

• a copy of the associated state body’s audited financial report
• an operating report as per the requirements under section 254 of the RO Act.

A copy of both reports must also be provided to members before lodging an application with the Commission.

Apply for a certificate under section 269

To apply, complete and send the application form to regorgs@fwc.gov.au no later than 6 months and 14 days after the end of the reporting unit's financial year.

• Application for a certificate under section 269 – Reduced reporting requirements (doc)

If satisfied that the reporting unit meets the requirements for reduced reporting, the General Manager will issue a certificate stating that the financial affairs of the reporting unit are encompassed by the financial affairs of the associate state body.

A certificate only applies to a financial year and if applicable, a new application must be made for any subsequent years.

Factors to consider when making an application

Rules of the reporting unit

Do the rules of the organisation require the reporting unit to engage in financial activities, such as collecting membership subscriptions or paying a capitation fee?

This may indicate that the reporting unit is required to conduct financial transactions and that its financial affairs may not be encompassed by the financial affairs of the associated state body. Remember: if an associated state body conducts the financial activities on behalf of your reporting unit, make sure that your rules allow for this to occur.

Preparation of associated state bodies financial report

The associated state body’s financial report must be prepared in accordance with the relevant prescribed state legislation. Remember: associated state bodies do not have obligations under the RO Act. Their financial reports should not refer to the RO Act and do not need to be prepared in accordance with the requirements under Part 3 of Chapter 8.

Assets and liabilities of the associated state body

Before making a section 269 application, the reporting unit should undertake a review to confirm the legal ownership of the associated state body’s assets and liabilities (that is, they are registered in the legal name of the associated state body and not the reporting unit).

Confirmation that all financial transactions are undertaken in the legal name of the associated state body should also occur. This will support the application that the financial affairs of the reporting unit are encompassed by the financial affairs of the associated state body.

Reporting units with no financial affairs in any given financial year can apply for a certificate under section 271 of the RO Act. If the General Manager grants a section 271 certificate, it exempts the reporting unit from the requirements of Part 3 of Chapter 8 of the RO Act.

The General Manager considers the following when reviewing an application for a section 271 certificate:

• whether the reporting unit spends money or incurs debt to conduct its activities
• whether another reporting unit of the organisation spends its own money or incurs debt so that the reporting unit may conduct its activities
• whether any person or body corporate or trust spends its own money or incurs debt so that the reporting unit may conduct its activities.

Apply for a certificate under section 271

To apply, complete and send the application form to regorgs@fwc.gov.au within 90 days of the end of the reporting unit's financial year.

• Application for exemption from financial reporting obligations under Part 3 of Chapter 8 (doc)