1. Eligibility for incorporation
Sport and recreational groups that intend to operate as not for profit associations are generally eligible for incorporation under the Associations Incorporation Act 1987. However, some large, professional sports associations that engage in substantial trading and commercial activities may not be eligible for incorporation under this Act. This does not mean that sports clubs cannot sell club merchandise, charge admission fees for sporting fixtures, or make a profit from their activities. However, the Act specifically limits the permissible extent of trading that applies to all incorporated associations.
Trading with members, or with the public, is permissible, provided that:
- the trading is secondary to the main purpose of the association; and
- any trading with the public is not substantial in relation to the association's other activities.
Clubs that operate outside of these parameters may no longer be eligible to remain incorporated under the Act. Other options for incorporation are set out in the section on The End of the Road?, and Commerce can also provide information.