Annual return factsheet for associated entities

What is an associated entity?

An associated entity is an entity that either:

is controlled by one or more registered political parties (RPPs)
operates wholly, or to a significant extent, for the benefit of one or more RPPs
is a financial member of a RPP
on whose behalf another person is a financial member of a RPP
has voting rights in a RPP
or
on whose behalf another person has voting rights in a RPP.

What is an annual return?

An annual return for an associated entity summarises the amounts received and expenditure and debts incurred by the associated entity during a financial year. We use annual returns to check that entities are complying with funding and disclosure laws including the disclosure of political donations.

Division 3C of Part 12 of the Electoral Act 2002 (external link) outlines the annual return requirements.

Do I need to submit an annual return?

Yes. The registered agent of an associated entity must complete an annual return on behalf of the associated entity regardless of whether the associated entity received any political donations or incurred any political expenditure.

However, only information in relation to the State campaign account(s) is required, so you may submit a nil return. More information about state campaign accounts.

An annual return is required for the whole financial year or the relevant part of the financial year during which the associated entity met the definition of an associated entity under the Electoral Act 2002 (external link).

When are annual returns due?

Annual returns are due 16 weeks after the end of the financial year, which is 20 October each year.

You can submit an annual return at any time from 1 July each year.

How do I submit an annual return?

You must submit the associated entity’s annual return using our online disclosure system, VEC Disclosures.

A user guide for submitting annual returns through VEC Disclosures is available here:

Associated entity - annual return user guide (PDF, 1.4MB)
Associated entity - annual return user guide (Word, 4.9MB)

What information do I need to include?

You must submit the following information in relation to the associated entity’s State campaign account(s) for the financial year (including GST):

total income
total disclosed political donations
total undisclosed political donations (under the disclosure threshold)
the number of undisclosed political donors for the total undisclosed political donations
total non-political donations
total expenditure
outstanding debts

You must have your annual return audited and include a certificate of audit from an independent auditor.

As an associated entity, the following information is also required to be lodged with, or as soon as possible after lodging, the annual return:

a loan, grant or donation statement under section 237 of the Fair Work (Registered Organisations) Act 2009 (Cth) (Fair Work (RO) Act)
a general-purpose financial statement under section 253 of the Fair Work (RO) Act
your financial statements under section 102 of the Associations Incorporation Reform Act 2012 (Vic)
a financial report under section 319 or 320 of the Corporations Act 2001 (Cth) (Corporations Act).

Explanation of requirements

Associated entities

Term	Details
Financial year	The reporting range for the annual return is 1 July to 30 June (inclusive).
Total income	The total income refers to the total amount received by, or on behalf of, the associated entity. This includes the amounts disclosed in 'Total disclosed political donations', 'Total undisclosed political donations' and 'Total non-political donations'
Total disclosed political donations	The total amount of disclosed political donations that appear on VEC Disclosures. These disclosed political donation amounts must also be included in the 'Total income' field. When completing the annual return in VEC Disclosures this field is automatically populated and cannot be edited.
Total undisclosed political donations	The total amount of political donations received, that have not been disclosed via the VEC Disclosures, including small contributions and funds raised under the disclosable threshold. These undisclosed political donation amounts must also be included in the ‘Total income’ field. If the sum of all political donations received from a person or entity during a financial year is equal to or above the disclosure threshold, the annual return must include the following details: the full name of the person or entity from whom the amount was received the address of the person or entity from whom the amount was received (unless the individual is a silent elector, in which case the address must not be recorded) the sum of the amount received
Number of donors for undisclosed political donations	The number of individual donors that made a political donation under the disclosable threshold for the financial year.
Total non-political donations	Total non-political donations are all amounts received by, or on behalf of, the associated entity that do not require disclosure. For example, dividends on shares, income of real estate holdings, deposits made to the recipient through a deceased estate or funding. These examples are acceptable monetary transactions that are not political donations. If the sum of all non-political donations received from a person or entity during a financial year is equal to or above the disclosure threshold, the annual return must include the following details: the full name of the person or entity from whom the amount was received the address of the person or entity from whom the amount was received (unless the individual is a silent elector, in which case the address must not be recorded) the sum of the amount received.
Total expenditure	Total expenditure is the total amount of expenses incurred by, or on behalf of, the associated entity.
Total outstanding debts	Total outstanding debts incurred by, or on behalf of, the associated entity. If the sum of all outstanding debts to a person or entity during a financial year is equal to or above the disclosure threshold, the annual return must include the following details: the full name and address of the person or entity to whom the amount of the debt is owed (unless the individual is a silent elector, in which case the address must not be recorded) the sum of the amount that is owed whether the amount of the debt is to a financial institution or non-financial institution.

Term

Details

Financial year

The reporting range for the annual return is 1 July to 30 June (inclusive).

Total income

The total income refers to the total amount received by, or on behalf of, the associated entity.

This includes the amounts disclosed in 'Total disclosed political donations', 'Total undisclosed political donations' and 'Total non-political donations'

Total disclosed political donations

The total amount of disclosed political donations that appear on VEC Disclosures. These disclosed political donation amounts must also be included in the 'Total income' field.

When completing the annual return in VEC Disclosures this field is automatically populated and cannot be edited.

Total undisclosed political donations

The total amount of political donations received, that have not been disclosed via the VEC Disclosures, including small contributions and funds raised under the disclosable threshold. These undisclosed political donation amounts must also be included in the ‘Total income’ field.

If the sum of all political donations received from a person or entity during a financial year is equal to or above the disclosure threshold, the annual return must include the following details:

the full name of the person or entity from whom the amount was received
the address of the person or entity from whom the amount was received (unless the individual is a silent elector, in which case the address must not be recorded)
the sum of the amount received

Number of donors for undisclosed political donations

The number of individual donors that made a political donation under the disclosable threshold for the financial year.

Total non-political donations

Total non-political donations are all amounts received by, or on behalf of, the associated entity that do not require disclosure. For example, dividends on shares, income of real estate holdings, deposits made to the recipient through a deceased estate or funding.

These examples are acceptable monetary transactions that are not political donations.

If the sum of all non-political donations received from a person or entity during a financial year is equal to or above the disclosure threshold, the annual return must include the following details:

the full name of the person or entity from whom the amount was received
the address of the person or entity from whom the amount was received (unless the individual is a silent elector, in which case the address must not be recorded)
the sum of the amount received.

Total expenditure

Total expenditure is the total amount of expenses incurred by, or on behalf of, the associated entity.

Total outstanding debts

Total outstanding debts incurred by, or on behalf of, the associated entity.

If the sum of all outstanding debts to a person or entity during a financial year is equal to or above the disclosure threshold, the annual return must include the following details:

the full name and address of the person or entity to whom the amount of the debt is owed (unless the individual is a silent elector, in which case the address must not be recorded)
the sum of the amount that is owed
whether the amount of the debt is to a financial institution or non-financial institution.

What about…

Funding amounts	Funding amounts must be reported on the annual return. These amounts are required in the 'Total income' field, as well as the 'Total non-political donations' field.
Fundraising amounts	Amounts received as profit through fundraising must be included in the Total income field. It must also be included in your 'Total disclosed political donations' field or your 'Total undisclosed political donations' field depending on whether the profit amount received from each person was under or over the disclosure threshold.
Goods and Services Tax (GST)	Where a sum includes GST, the reported amount must include the GST.
Small contributions	Small contributions must be included in the 'Total income' as well as the 'Total undisclosed political donations' fields.

Do annual returns need to be audited?

Yes. You must have your annual return audited and include a certificate of audit from an independent auditor, advising that the return has been audited in accordance with Australian Accounting Standards as specified in s. 334(1) of the Corporations Act 2001 (Cth).

The audit certificate must state that the auditor:

was given full and free access at all reasonable times to all accounts, records, documents and papers relating directly or indirectly to any matter required to be specified in the statement; and
examined the material referred to in paragraph (a) for the purpose of giving the certificate; and
received all information and explanations that the auditor requested in respect of any matter required to be specified in the statement; and
has no reason to believe that any matter stated in the statement is not correct.

Can the public see my annual return?

Yes. We are required to publish an annual return summary on VEC Disclosures on or before 31 December each year.

We do not publish donor addresses as they are confidential under the Electoral Act 2002.

What happens if I don’t submit an annual return?

If you do not submit an annual return, you may be fined.

The fine for this offence is 200 penalty units (external link).