On this page
- What is the purpose of an amalgamation or merger?
- Planning and due diligence
- What is an amalgamation?
- What is a merger?
- Amalgamation process for incorporated associations
What is the purpose of an amalgamation or merger?
Sometimes not-for-profit organisations want to formally join together. This may be for a number of reasons – for example, the organisations would be more sustainable and efficient if joined together, or it may be easier to secure government funding.
Two or more organisations can formally join together in a variety of ways. We explain the difference between an amalgamation and a merger below.
More information
Before reading further, see our guide to working with other organisations.
Planning and due diligence
Before pursuing an amalgamation or merger, organisations typically:
- conduct due diligence on each other
- develop a thorough understanding of the organisation or organisations they are considering combining with, and
- identify any issues that should be addressed before pursuing the amalgamation or merger
Due diligence gives organisations the opportunity to make an informed decision about whether an amalgamation or merger is in their best interests.
It typically involves each organisation:
- requesting and obtaining information from the other organisation (including corporate, financial, contractual and insurance documents), and
- reviewing and analysing that information, often with the assistance of professional advisers such as lawyers and accountants
Organisations should carefully consider any risks or liabilities affecting another organisation, as these affect the combined organisations following a merger. For example, an organisation may be involved in litigation or have outstanding tax debts.
Organisations should also consider whether the proposed transaction may require clearance from the Australian Competition and Consumer Commission (ACCC) under Australia's mandatory merger control regime.
More information
For more information about due diligence, see our guide to working with other organisations.
Don’t know your legal structure?
To find out your organisation’s legal structure:
- If your organisation is a charity, search the ACNC register. Once you have located your organisation’s entry, you can check your rules or constitution which should identify the type of legal structure. You can search by name and by ABN or ACN.
- If your organisation is not a charity, start with the Australian Business Register search. You will need the organisation's name and, ideally, its ABN or ACN. If your organisation is a company limited by guarantee (an Australian Government not-for-profit structure) it will be identified as an ‘Australian public company’. If your organisation is a state-based not-for-profit structure such as an incorporated association or a co-operative, it will often be listed as an 'other incorporated entity'. You should then check the relevant state or territory regulator to confirm your organisation's structure.
What is an amalgamation?
Amalgamation is the process in which two or more incorporated associations in the same state or territory combine to create a single incorporated association.
A key advantage of an amalgamation is that certain steps that would otherwise be required in a contractual merger happen automatically under legislation, which can make the process simpler and less costly.
The amalgamation process is available to incorporated associations in all jurisdictions in Australia except the Northern Territory, where a statutory transfer of property process may be used instead.
Where available, the amalgamation process is governed by the incorporated association legislation in each state and territory. When incorporated associations amalgamate, they form a new incorporated association and the relevant regulator cancels the incorporation of the original associations without requiring them to be separately wound up.
What is a merger?
Because amalgamation is only available to incorporated associations in the same state or territory, many organisations will need to use a merger structure instead.
Unlike amalgamation, a merger is not based on a statutory process and can be structured in a range of different ways.
A merger involves a contractual agreement between two or more organisations to form a single organisation. A merger can occur in several ways, including where:
- one or more organisations becomes part of another organisation, or
- two or more organisations combine to create a new organisation
Mergers can be complex and require significant planning and preparation.
A merger is a significant step that can be difficult to reverse. For this reason, organisations should carefully consider the proposed merger and obtain independent legal advice before entering into any binding agreements.
Our fact sheet covers:
- what is a merger?
- mandatory merger control regime
- effects of a merger
- advantages and disadvantages of a merger
- merger process
- post-merger requirements
Amalgamation process for incorporated associations
Because the amalgamation process differs between states and territories, we have prepared separate fact sheets for each jurisdiction.
The availability and requirements of amalgamation differ across jurisdictions. Organisations should obtain legal advice before deciding whether amalgamation is the most appropriate structure.
Our fact sheets cover:
- what is amalgamation?
- effect of amalgamation
- considerations before amalgamation
- advantages and disadvantages of amalgamation
- amalgamation process
- post-amalgamation requirements
The content on this webpage was last updated in June 2026 and is not legal advice. See full disclaimer and copyright notice.
