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House of Assembly - Fifty-Fourth Parliament, Second Session (54-2)
2021-10-28 Daily Xml
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Associations Incorporation (Miscellaneous) Amendment Bill

Committee Stage

In committee (resumed on motion).

Clause 6.

The Hon. V.A. CHAPMAN: I indicate that the member for Enfield requested, at the time that we last considered this matter in committee, the following information: can the minister confirm that the proposal from Consumer and Business Services (CBS) is in the form of this bill; and have there been any changes to what was recommended? I indicated to the committee that I would ascertain a response.

I confirm that there have been no changes to the bill from what Commissioner Soulio has recommended. I note that there have been amendments filed and these were initiated and recommended by the commissioner following subsequent stakeholder comments, namely, the South Australian Council of Social Service Incorporated (SACOSS).

The commissioner has advised that the demand for these reforms has been demonstrated and reinforced by the commission's identification of deficiencies in its available powers and regulatory responses to assist and take action where issues have been identified that warrant intervention. A need for increased oversight and regulation of the sector has been evidenced through investigations undertaken by the commission.

A successful prosecution in recent years involved the misappropriation of funds of approximately $160,000 by the association's president who blocked attempts by members to investigate discrepancies in the accounts. This prosecution demonstrably highlighted the inadequacy of the commission's compliance and enforcement powers and the absence of sufficient mechanisms to ensure transparency, protection and access to the information for members to inform any allegations of serious misconduct in a timely fashion. The problematic circumstances of this particular matter were compounded by the fact that the association relied solely on government funding, highlighting the apparent lack of accountability for ensuring that funding had been applied for approved purposes.

Other recent case studies from the commission demonstrate widespread issues with poor governance and lack of understanding of rights and liabilities of associations with their members and officeholders. The commissioner has advised of a number of ongoing investigations involving alleged misappropriation of significant amounts of commonwealth government funding, and the powers provided for these reforms are desperately needed to investigate and address any misconduct and to protect the interests of the communities these associations were incorporated to serve.

The member for Enfield also asked, in respect of Indigenous incorporated associations: 'What consultation have you done with these two specific groups and how much additional funding are you proposing be provided to CBS to be able to educate these groups?' The response is as follows in relation to both Indigenous and multicultural incorporated associations. As I have already noted, the commissioner consulted with multicultural affairs and supported those proposed reforms in the Office of the Registrar of Indigenous Corporations. I am advised that the commissioner also met with the Aboriginal Legal Rights Movement, and his staff has had specific dealings with a number of Indigenous incorporated associations to assist with a number of recent governance or other issues that have come to light.

The commissioner has also taken into consideration a significant number of submissions made to the Aboriginal Community Controlled Organisations parliamentary inquiry. Whilst not being issues restricted to Aboriginal-controlled organisations, the ACCO inquiry has heard evidence that affirms the need for reform of the sector to ensure that appropriate regulatory structures are in place to support accountability and transparency in the decision-making of the associations and to ensure that the commission is appropriately empowered to address misconduct and investigate potential breaches.

I am very pleased to further confirm that the government has approved funding of $2.47 million for Consumer and Business Services now between 2024-25. The funding includes both ongoing and implementation support in recognition of the significant need for a robust education and communication package to support these reforms. This is expected to include the production of publication, paid media outreach and translation services to ensure that associations are properly supported in the implementation of the reform package and ongoing good governance mechanisms under the amended act.

The commissioner provided evidence to the Aboriginal Lands Parliamentary Standing Committee that improved and tailored education support is required for committee members of Aboriginal community-controlled organisations around their obligations, responsibilities and liabilities under the act. This is integral to supporting a governance capacity-building framework and will enable these associations to deliver on Aboriginal community aspirations of self-determination.

I am also advised the commissioner may also be seeking Indigenous support officers to provide tailored support. I also bring to the attention of the house that only this week, on 26 October, the Aboriginal Lands Parliamentary Standing Committee tabled its interim report in relation to Aboriginal community-controlled organisations. I commend it to all members to have a good read of that.

The interim report provides a clear recommendation that the parliament pass these proposed reforms to increase oversight and dispute intervention powers for the commissioner assisting Aboriginal incorporated associations. There were, I think, a further three matters raised by the member for Enfield, which I will deal with in a further hearing of this matter.

Progress reported; committee to sit again.

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