30 August 2024

ACT MP Laura Trask is raising the alarm over a possible extinction event for small incorporated societies expected to comply with the Incorporated Societies Act 2022 by April 2026.

“Small incorporated societies sit at the heart of civil society. Communities are healthier and more connected when Kiwis give up their time for a common cause or interest, or to play sport together.

“Small clubs and volunteer-run societies that have been operating problem-free for decades under the old legislation are now set to be burdened with a new regime under the Incorporated Societies Act 2022. The Act’s extensive rules reach across financial reporting, health and safety, notification of constitutional or membership changes, and managing conflicts of interest.

“Corporate-style governance rules might be feasible for nationwide organisations with teams of paid staff, but will be a massive burden – if not completely unattainable – for smaller community clubs.

“It’s ridiculous to ask bowling clubs and stamp collectors to fork out thousands for expert legal and financial advice just to continue operating as they have always done. They face a difficult choice between hiking membership fees, or facing automatic disillusion when they reach the April 2026 deadline.

“Kiwis shouldn’t have to sacrifice their membership of a rowing club or bridge club just because a piece of legislation loaded on costs in a cost-of-living crisis. The people running these clubs aren’t paid administrators; they’re busy parents, grandparents, and hobbyists building communities and networks with no financial reward.

“The Amateur Sport Association has called the looming deadline an extinction event. They have worked hard to bring Parliament’s attention to these issues and ACT has listened.

“I am preparing a member’s bill to address these issues. In the meantime, I have written to the Minister of Commerce and Consumer Affairs suggesting the Government defers the deadline for compliance while it fixes this mess of an Act and gives small societies confidence they can continue serving their communities with their current practices.”

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