Registrar cautions against assuming late lodgement equates to wrongdoing

Recent commentary suggesting that corporations registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) have lesser accountability for taxpayer funds is incorrect.

Firstly, most corporations under the CATSI Act operate with minimal or no income. The sector is diverse. Corporations range from large community-controlled health services and cultural institutions to small, volunteer-run organisations that operate with minimal or no income.

Recent public interpretation of reporting rates for CATSI Act registered corporations are not grounded in factual analysis.

Of the 1,254 corporations yet to lodge their 2023–24 reports, 82.4% are classified as small, with annual income typically under $100,000. These corporations are less likely to receive government funding. 

Many groups choose to register under the CATSI Act to formalise their structure – not because they are large or financially complex. 

Secondly, assertions of lack of accountability or lower standards under the CATSI Act are unfounded. The CATSI Act does not reduce compliance requirements compared to the Corporations Act 2001 – in fact, many corporations would be subject to fewer reporting requirements if they were registered under the Corporations Act 2001. 

The threshold under the CATSI Act that triggers a requirement to prepare a financial report is annual income of $100,000. For comparison, the threshold under the Corporations Act 2001 is $250,000 and under the Charities Act 2012 it’s $500,000.

There are 221 corporations with overdue reports that are either medium or large in size, who may receive some of their income from Government sources. Putting this in context of the entire sector, this group represents 6.7% of all corporations. If registered under alternate legislation many of these corporations would be considered compliant with their reporting requirements.

Further, any corporations in receipt of Government funding are subject to financial acquittal obligations to their funding bodies. The assumption that Indigenous corporations receive significant taxpayer funding without being required to account for it is misguided and incorrect. 

The Registrar of Aboriginal and Torres Strait Islander Corporations is independent and impartial and does not engage in political debate. However, she strongly defends the transparency of the sector, noting:

• Annual reports (including financial reports where required) are publicly available for no fee on the ORIC website.
• Many corporations required to lodge financial reports under the CATSI Act would not be required to do so under the Corporations Act.
• ORIC publishes both compliance rates and the names of corporations that have not met their reporting obligations.

These measures demonstrate a higher level of public accountability than many other regulatory frameworks.

While the Registrar agrees that timely reporting is essential, she cautions against assuming that late lodgement equates to wrongdoing. ORIC’s compliance posture balances enforcement with support, empowering members to hold boards accountable and encouraging funding bodies to use their contractual levers.

Where corporations show ongoing disregard for their obligations, ORIC takes proportionate regulatory action. In 2024–25, there were 20 prosecution outcomes for failing to lodge reports, with one so far in 2025–26. Over the past 2 years, ORIC has deregistered around 500 corporations that were no longer operating. 

This year, the Registrar will consider civil action against directors of corporations that continue to neglect their legal duties.

The Registrar remains committed to transparency, accountability, and supporting the self-determination of Aboriginal and Torres Strait Islander corporations.