Theme 3 - Teams
What legal issues do we need to consider?
Group members who undertake activities within the community must acquaint themselves with certain rules and regulations. As with all legal matters ignorance is never considered an adequate defence. There are three major areas that your group should remain informed about:
- Tax liability
- Insurance cover
- Legal responsibilities of committees and boards
Tax liability
A group should review their tax status if they:
- Collect money
- Receive grants
- Employ individuals or
- Contract out work
Important tax concessions are granted to charities in Australia. The Australian Tax Office (ATO) tax laws and definitions of charities are explained here, plus specific Justice Tasmania information about collecting money for charities.
The ATO has helpful information for non-government organisations:
Insurance cover
Insurance cover and legal liability have become major issues for many Australian community groups in recent years. This is because our society is becoming increasingly litigious and insurance companies have responded by increasing premiums for insuring events. The result has been that many long-standing community events have been threatened with closure due to unaffordable insurance premiums. State governments and other groups have responded. If your group needs assistance with insurance cover these sites and contacts may help you:
- Our community website allows you to register interest in a community group insurance scheme, and find out where to get insurance in TAS.
- The Tasmanian State Government's Public Liability contact line has been available for some time now and the number to ring from anywhere in Tasmania is 1800 003 533.
- Many community Groups in Tasmania have access to the Community Groups Insurance Scheme that can be accessed here.
- Our community website has a page for updated information on insurance issues.
Legal Responsibilities of Committees and Boards
Incorporated community groups have legal responsibilities under a state Act and require an elected committee or board to ensure the organisation meets these responsibilities. Each state will have its own legal requirements and groups must check with their state government offices.
Specific legal responsibilities of managing committees are to:
- Ensure the organisation operates in line with the relevant Acts constitution and any funding agreements
- Ensure the organisation has adequate insurance cover
- Meet financial and health and safety responsibilities towards employers and volunteers
- Ensure services are provided in a safe and ethical way
The NSW Office of Fair Trading has a useful brochure of model rules for an Incorporated Association that includes information about setting up and running an association.
The Western Australian Government CommunityWise program have information brochures about the structures and legal responsibilities of community organisations.
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