"We are now less than one year away from a potential mass extinction event for small incorporated societies across New Zealand," warns ACT MP Laura McClure, who has a bill in Parliament's ballot to address the issue.

With the Incorporated Societies Act 2022 set to require all existing societies to re-register under a new regime by April next year, McClure is raising the alarm again that it will impose unsustainable costs on many grassroots small societies.

RNZ has reported that around 18,000 incorporated societies are yet to re-register under the new legislation.

"Small societies are telling me that they lack the expertise to deal with the upcoming regime's unworkable rules. Stamp collecting groups and running clubs can't necessarily afford the thousands of dollars in financial and legal advice to stay above board," says McClure.

"These are not large societies. These are local clubs and community associations that have operated successfully, providing valuable services to the community, and now they face the real risk of folding entirely.

"I have lodged a member’s bill that would define small societies, and effectively carve them out from the most onerous new liabilities and financial reporting requirements. This week I have written to the new Commerce and Consumer Affairs Minister to urge that he either implement my suggested changes to legislation, or defer the looming compliance deadline.

"It is not too late to act, but the clock is ticking."

Laura McClure's Incorporated Societies (Small Societies) Amendment Bill can be found here.

Her letter to the Minister can be found here.

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