Consequences of not reporting

Avoid penalties by meeting your reporting obligations. Doing correct and timely reporting is positive for your corporation and the sector as a whole. 

Lodging reports on time shows your corporation takes its accountability and reporting obligations seriously. 

If a corporation doesn’t meet its reporting obligations there are consequences for the corporation, its board of directors and the wider sector. 

The corporation could be deregistered or referred for prosecution to the Commonwealth Director of Public Prosecutions.

Effect on you, your members, stakeholders and the sector

If you report late or not at all, you are:

• denying your members and other stakeholders information about your corporation and its performance, hindering their ability to make informed decisions
• risking current and future income streams and business opportunities – creditors, funding bodies and investors may be reluctant to deal with a corporation with a history of poor accountability and compliance
• making it difficult for ORIC to monitor your financial viability, governance standards and risk, and therefore missing out on early support if problems arise
• damaging your personal reputation as a director by failing in your fiduciary duty and duty of care and diligence – it’s your responsibility to ensure the corporation meets its reporting obligations
• lowering the quality of datasets used by government agencies and researchers to understand the sector and determine how best to allocate resources to support Aboriginal and Torres Strait Islander people
• risking prosecution action and a potential fine
• risking deregistration of your corporation – not reporting may be a sign your corporation is not carrying on business.

If your corporation is also registered as a charity, not reporting puts you at risk of ACNC revoking your charity status and therefore access to tax exemptions.

Offences and penalties under the CATSI Act

The CATSI Act says failing to comply with these sections is an offence:

• 330-10 (General report to be lodged with Registrar) 
• 348-1 (Lodging annual reports with the Registrar)

The Act prescribes penalties for these offences. The maximum penalty for each report not lodged is one of the following:

• 25 penalty units 
• imprisonment for 6 months
• both. 

For a corporation, the fine may be up to 5 times the maximum penalty. 

This means at the current penalty values a corporation may face a fine of up to $39,125 for each report not lodged.