What is an incorporated association

What is an incorporated association?

Incorporated associations are:

  • not-for-profit organisations
  • voluntary
  • suitable for community based groups
  • an inexpensive way to give associations a legal identity which continues despite any membership changes
  • registered by CBOS under the Associations Incorporation Act 1964

An incorporated association has the word incorporated or the abbreviation Inc in its name.

Advantages of incorporation

An incorporated association:

  • can operate regardless of changes to its membership
  • can accept gifts and donations
  • can enter into contracts
  • can apply for government grants
  • have the automatic approval to solicit for charitable donations in the state of Tasmania

Limitation of liability

One of the principal reasons for incorporation is to gain the benefits of limited liability.

Unless it is specified in the association rules, a member of an incorporated association is not liable to contribute towards the:

  • associations debt payments and liabilities or
  • costs, charges and expenses associated with winding up the association

Association members can be exposed to unlimited liability. Members should get their own legal advice if they are in doubt about the extent of their liability (see section 27 of the Act).

Updated: 27 Jul 2022

This page has been produced and published by the Consumer Building and Occupational Services Division of the Department of Justice. Although every care has been taken in production, no responsibility is accepted for the accuracy, completeness, or relevance to the user's purpose of the information. Those using it for whatever purpose are advised to verify it with the relevant government department, local government body or other source and to obtain any appropriate professional advice. The Crown, its officers, employees and agents do not accept liability however arising, including liability for negligence, for any loss resulting from the use of or reliance upon the information and/or reliance on its availability at any time.