ASSOCIATIONS INCORPORATION ACT 1981 - SECT 4
Whether association is formed or carried on for the purpose of financial gain for its members
ASSOCIATIONS INCORPORATION ACT 1981 - SECT 4
Whether association is formed or carried on for the purpose of financial gain for its members
4 Whether association is formed or carried on for the purpose of financial
gain for its members
(1) An association is not formed or carried on for the purpose of financial
gain for its members merely because 1 or more of the following circumstances
apply to it—
(a) the association makes a financial gain, but no part of the
gain is divided among, or received by, any of the association’s members;
(b) the association is established to protect or regulate a trade, business,
industry or calling (the
"pursuit" ) engaged in by its members, or in which they are interested, but
the association does not itself engage or take part in the pursuit;
(d) the
association trades with its members, but the trade is ancillary to its
principal purpose;
(e) the association trades with the public, but the trade
is ancillary to the association’s principal purpose and is not substantial
when compared with its other activities;
(i) receives a salary as an employee or officer
of the association; or
(ii) makes a financial gain from the association to
which a non-member, acting instead of the member, would equally be entitled;
or
(iii) receives a trophy or prize (other than money) from the association
because of a competition; or
(iv) receives temporary assistance because of
illness, injury or bereavement or other financial hardship suffered by the
member.
(2) If a person receives a financial gain from an association because
of the membership of the association of someone else (the
"member" ), the financial gain is taken to have been received by the member.
(3) In subsection (1) (b) —
"association" includes a branch or part of the association.