2025 Update of the Constitution for Modified Mini Car Club of South Australia

Our Committee has been hard at work again this year, and would like to propose another small revision to our Constitution and Rules. This means that we will need to call a Special General Meeting to enact the proposed changes. 

The Management Committee proposes a vote to amend the Constitution on 9 September 2025 (funnily enough, 1 year since the last change). Our September General Meeting will therefore be preceded by a short Special General Meeting to hold a Member vote on the amendment.

We require 20% of all voting Members (40+ of our current 230ish paid-up Members!!) in attendance at the meeting to make a Quorum, and so we ask that as many of you as possible try to attend. More information on the proposed changes is provided below.

 

In 2023/2024 the Tax Office sought the submission of Tax Returns from Not-For-Profit associations (although it has been a legislative requirement for some time, it had not been actively sought in previous years).

The Club submitted a Tax Return for the 2023/24 financial year, and has again been through the process of preparing a return for the 2024/25 tax year (soon to be submitted).

"Mutuality" is a principle used in the determination of Taxable Income for a Not-For-Profit Association. In general terms, it means that any income that is taken directly from a Member of the Club, is not taxable. Likewise, any expense related to a Member of the Club, is not Tax deductible. What remains when excluding these are what is considered (the Non-Member income and expenses).

Therefore, membership related fees, or your purchases of Club merchandise, are not considered when we look at our Taxable Income. 

The Club's largest source of Non-Member income (or Taxable Income) in the past two financial years has been the Sponsorship's and revenue from Minis at the Mill. To a lesser extent, we also pay tax on profits made on operating Motorkhana's and the like.

Now that you understand those concepts, we get to the nitty-gritty of these changes.

The Committee seeks to include "Event Membership" and "Body-Corporate Membership" in the updated Constitution.

The addition of these Membership levels will allow the Club to make event attendees a Member for the day of that event, and companies that contribute to the operation of the Club (Sponsors), Members for that year. There are specific requirements for each of these Member levels and a record of their details will be maintained by the Club. It has been included in the proposed Constitution update, that membership fees for these levels will be proposed by the operating Committee, and will be confirmed through a vote at the proceeding monthly General Meeting.

The proposed changes to the Constitution aim to make it easier for our Committee each year in determining Member and Non-Member income. Events like Mini’s at the Mill and sponsorship income would be disregarded from any Taxable Income calculation under the changes.

The proposed changes are identified in the attached documents, and we recommend that you consider them in detail before attending the meeting to vote on the changes.