The CATSI Act was passed by the Australian Parliament in October 2006. It began on 1 July 2007, replacing the Aboriginal Councils and Associations Act 1976 (ACA Act).
Aboriginal Councils and Associations Act 1976
In the 1960s and 1970s, various reviews advised the Australian Government of the need for legislation to make it easier for Indigenous communities and organisations to form corporations. The emergence of land rights emphasised the need for an alternative to complex and onerous laws and processes for incorporating, which were unsuited to many Indigenous people, particularly those living in remote areas.
As a result, the ACA Act was passed, allowing Aboriginal and Torres Strait Islander groups to form corporations for any social or economic purpose. It remained in place for more than 40 years; but by the late 1990s, it no longer reflected how corporations should be run.
A comprehensive independent review of the ACA Act in 2002 recommended some ways that the ACA Act could be made more consistent with the Corporations Act. The result was the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
The CATSI Act
The new law adopted many of the suggestions made during the review, for example, that Indigenous people were keen to make sure directors and senior employees of corporations were bound by their responsibilities and duties.
The new law also streamlined reporting requirements, especially for small and medium-sized corporations.
It also had parts that apply only to Aboriginal and Torres Strait Islander organisations, so that they can design rules better suited to their circumstances.
Read the Bill and explanatory memo for the CATSI Act.
Introduction of the CATSI Act (2007)
On 1 July 2007 all corporations incorporated under the ACA Act became corporations under the CATSI Act. A transitional Act preserved the existing legal status, office bearers, assets and liabilities of all ACA Act corporations. This minimised the administrative burden on corporations while providing certainty of operation for corporations, their members and stakeholders.
Corporations had up to two years to make the necessary changes to comply with the new law.
Read the Bill and explanatory memo for the transitional Act.
Amendments to the new Act
Before passing the new CATSI Act, the parliament made some amendments to it. The amendments introduced new provisions dealing with the voluntary transfer and amalgamation of corporations. They allowed:
- a body incorporated under another system to seamlessly transfer its registration to the CATSI legislation if certain requirements are satisfied
- a corporation to seamlessly transfer its registration to the Corporations Act or a state or territory system
- corporations to amalgamate, either by an administrative process approved by the Registrar or by applying to a court.
Read the Bill and explanatory memo for the amendment Act.
KPMG review (2016)
In September 2016 the Department of the Prime Minister and Cabinet commissioned KPMG to conduct a review of the CATSI Act and ORIC. The review considered how the Registrar can most effectively support the capacity of Aboriginal and Torres Strait Islander corporations to maintain good governance and strong financial management, as well as any amendments to the CATSI Act required to meet this objective.
The overall assessment was that ORIC was doing a good job in a challenging regulatory environment, but that there were also opportunities to enhance ORIC’s contribution to ensuring Aboriginal and Torres Strait Islander corporation are well governed.
Technical review (2017)
A technical review of the CATSI Act was conducted in late 2017 to explore ways to strengthen and improve the CATSI Act and align it with recent changes in corporate law and regulation.
The review found a range of opportunities to make the law stronger and allow corporations to use it more effectively, which the government decided to pursue as amendments to the Act.
The proposed changes covered:
- size classifications
- rule books
- business structures
- meetings and reporting
- membership
- transparency of senior executives
- payments to related third parties
- special administrations
- voluntary deregistration
- compliance powers.
Consultation on amendments (2018)
In 2018, feedback and comments from roundtable sessions, interviews and written submissions was used to help identify issues with implementing the proposed amendments to the CATSI Act, and to ensure corporations could comply with them.
Amendment (strengthening governance and transparency) bill (2018)
On 5 December 2018 the Corporations (Aboriginal and Torres Strait Islander) Amendment (Strengthening Governance and Transparency) Bill 2018 was introduced into the Parliament.
The Bill lapsed when the Parliament was prorogued and the House of Representatives was dissolved before the May 2019 election.
Comprehensive review (2019)
In 2019 the National Indigenous Australians Agency (NIAA) undertook a review to consider whether the CATSI Act was serving its purpose, including as a special measure under the Racial Discrimination Act 1975.
The comprehensive review comprised 3 phases of 22 dedicated weeks of consultation. Stakeholders were provided with the opportunity to shape the review, comment on proposed changes, and comment on amendments to the CATSI Act.
The CATSI Act Review Final Report made 72 recommendations. Most of the recommendations suggested changes to the CATSI Act, and some called for further consideration of an aspect of the legislation.
CATSI Act Amendment Bill (2021)
Feedback
The NIAA sought feedback on the draft CATSI Act Amendment Bill through online sessions, email and other channels. Specifically, they asked people to identify:
- parts of the legislation they support
- parts they believe may be difficult to implement.
In addition, the NIAA was interested in feedback on the clarity, readability and complexity of the draft legislation.
Parliament
The CATSI Act Amendment Bill was introduced into the House of Representatives in August and passed the House on 2 September 2021. The House then referred the Bill to the Senate's Finance and Public Administration Legislation Committee, which handed down its report recommending the Bill be passed in October 2021.
The Bill lapsed when the Parliament was prorogued and the House of Representatives was dissolved before the May 2022 election.