During Senate Estimates, I asked the Office of the Registrar of Indigenous Corporations (ORIC) about the issue of late reporting by Aboriginal corporations. I was told that of the 3,312 Aboriginal corporations registered with ORIC, 2,940 were late in submitting their required reports and 1,162 reports for the 2024 financial year had not yet been lodged.
Of the reports not yet submitted, 84% were from small corporations with an income of less than $100,000. ORIC advised that out of the approximately 3,300 corporations, 60 had been listed for prosecution, with 27 already prosecuted. Penalties imposed ranged from deregistration and winding up to personal litigation against directors.
The most common reason cited for non-submission of financial reports was apathy. As part of their response to this issue, ORIC is now offering training for all relevant parties to help improve compliance.
– Senate Estimates | October 2025
Transcript
CHAIR: Senator Roberts.
Senator ROBERTS: My questions are to ORIC, the Office of the Registrar of Indigenous Corporations. Thank you for being here. It has been widely reported that many Indigenous corporations have not submitted reports required under statute. How many Indigenous incorporations are in breach of requirements to submit their required reports for this period?
Ms Stroud: As at 6 October, I can confirm that, of the 3,312 Aboriginal and Torres Strait Islander corporations, 2,940 are required to lodge one or more annual reports—some have exemptions. Of those 2,940 corporations required to lodge one or more reports, I can confirm that 1,162, or 39½ per cent, have not yet lodged their 2024 reports, which would’ve been due in December 2024, noting that the 2025 reports are not due till the end of this year. For context, though, I would add that, of those 1,162 corporations that have failed to lodge last year’s reports, 84 per cent are small corporations. They are corporations that have a consolidated growth income revenue of under $100,000 each year and are only required to lodge a general report. Corporations that are large and, rightly so, are those that should be subject to greater public scrutiny and funding body scrutiny, represent two per cent of those corporations that have not yet lodged their reports.
Senator ROBERTS: My rough mental arithmetic is about 250 that are not small corporations have failed to lodge a report.
Ms Stroud: I’ll give you that number—it’s 241.
Senator ROBERTS: I was pretty close. That’s a lot. It might only be two per cent, but it’s actually about eight per cent of the total of corporations. How many board members, on average, are on a corporation board?
Ms Stroud: I don’t have that figure on hand. I can take that on notice. I can tell you that, across the 3,000 odd corporations, there are 17,649, in total, director positions. That doesn’t account for that some directors might sit on multiple corporations. Under the legislation, corporations can have up to 12 directors and over 12 requires an exemption to do so.
Senator ROBERTS: Say that again about the exemption, please.
Ms Stroud: To have fewer than three or over 12 directors on a board requires an exemption.
Senator ROBERTS: How many Aboriginals and Torres Strait Islanders are overseen, helped or serviced by these boards?
Ms Stroud: Sorry, I wouldn’t be in a position to answer that question. I can tell you that, of the just over 3,000 corporations, they are made up of just shy of 245,000 members, again, that’s not accounting for that some members might be members of multiple corporations.
Senator ROBERTS: What was that number again?
Ms Stroud: It is 245,594, to be exact. Those 3,300 corporations, as I mentioned before, can be very small corporations with under $100,000 in assets or $100,000 in income through to large corporations. They do everything from cultural heritage protection to land and water management, schools, health services and other vital social services. I wouldn’t be in a position to even estimate the total reach of those services to Aboriginal and Torres Strait Islander clients and beneficiaries.
Senator ROBERTS: You’ve mentioned that 2,940 are required to report, and 3,300 is the total number. So about 360 are not required to report.
Ms Stroud: Eighty-eight per cent of corporations are required to lodge some form of annual report.
Senator ROBERTS: I appreciate your concise and direct answers. Thank you for that. Why have these breaches occurred? I know for small corporations it’s probably lack of—well, you tell me.
Ms Stroud: There are a number of reasons why corporations don’t lodge their annual reports. We encourage corporations, wherever possible, to reach out to us and let us know to help us understand the reason for it. It can be turnover in boards, difficulties of getting the services of auditors, disruptions in corporations or it can be just apathy and negligence of directors’ duties. Why we encourage corporations to reach out and let us know—and be on almost an update plan with us so that we can keep on top of when we can expect reports—is that we take that into consideration with our prosecution work. We have referred 60 corporations to CDPP for prosecution for failing to lodge reports. Twenty-seven corporations have been prosecuted. They are medium and large corporations, so, again, they’re corporations with over $100,000 annual revenue and those from which the public would rightfully expect a higher degree of accountability to their members and to their regulator and also to their funders. That’s why medium and large corporations are those which we refer for prosecution where they persistently fail to lodge reports for a couple of years. We now deregister corporations.
Senator ROBERTS: What happens when they’re deregistered?
Ms Stroud: If a corporation is deregistered, it no longer exists. There are challenges with deregistering corporations, particularly those that hold assets. There might be a corporation that holds assets but is ordinarily not conducting business and continually failing to lodge its reports. We’ve recently sought legal advice on alternative measures for those corporations, including winding up. We’ve also flagged to the public that, where a corporation continually fails to lodge its reports and has been subject to prosecution and still refuses, we will consider civil prosecution against individual directors.
Senator ROBERTS: So the directors can be liable?
Ms Stroud: It’s a lengthy and expensive exercise for ORIC to peruse civil litigation against directors that continually fail, hence why we flagged it in our recent regulatory posture. It’s done so because, where a corporation is prosecuted for failing to lodge its reports, it’s an offence of the corporation, and the corporation is what pays the fine if the court imposes one. Our intention now is that, where directors sit behind that, we will civilly pursue individual directors. I’ve also got with me Deputy Register Andrew Huey, who can help answer your questions.
Senator ROBERTS: Is there any suggestion of fraud being involved or incompetence being involved, or is it just apathy? You mentioned apathy. What would be the defining characteristics?
Ms Stroud: For the small corporations—again, that’s 84 per cent of corporations not lodging reports—I would say it is a capacity and capability issue, or challenge, and a degree of apathy around reporting. We have no evidence that there is an immediate and direct correlation between medium and large corporations failing to lodge their financial reports and evidence of fraud, noting that, when corporations do lodge their annual reports, a quality check by us has been done, directors have signed off on it and directors have done their declaration to accept responsibility for it. That is one way of identifying where there might be red flags. But, in the main, evidence of corruption, fraud, mismanagement or negligence of director duties or abuse of director duties comes through other avenues—through referrals, reports of concerns and complaints.
Senator ROBERTS: Finally, apart from keeping track of it, what changes in oversight will you introduce to ensure the integrity of the management of these Indigenous corporations? Have you got an overall plan for raising the standards?
Ms Stroud: We have refreshed our two-day guidance training. It’s for directors sitting. Current directors are given priority. Members and relevant staff can also attend the training, and we’ve also introduced a new one-day ‘understanding your finance’ training, which is designed for directors to understand how to read financials and have greater confidence in asking questions, knowing what to look for and holding their management staff accountable for financial reporting to them.
Senator ROBERTS: Building understanding to build confidence?
Ms Stroud: Yes.
Senator ROBERTS: Okay. Thank you.
