On Friday, Cycling Australia informed its members that its insurance premium would rise, leading to an increase in member fees from 1 July 2019.
In its release, Cycling Australia said, “Cycling Australia is not … in a financial position to absorb the full cost of the insurance increase. Nonetheless, we will make all the contribution we can to fund the increase. The balance of the increase will either be passed through in increased member fees or absorbed by the relevant state or territory association.”
Currently, a portion of a member’s fees goes to that member’s club (the “club fee”), a portion goes to the state federation (the “state fee”) and the remainder goes to Cycling Australia.
Yesterday, the board of directors of Cycling NSW (“CNSW”) passed two resolutions in response to Cycling Australia’s release.
First, the CNSW board will communicate to Cycling Australia that CNSW does not wish for members’ fees to increase.
Second, the CNSW board wishes to clarify that if Cycling Australia does pass through the insurance costs by increasing member fees, there will have been no increase to the state fee received by CNSW from NSW members.
Insurance has always been, and remains, the responsibility of Cycling Australia. The CNSW board understands that while Cycling Australia may have sufficient finances to cover the increased insurance premiums, it is Cycling Australia’s prerogative to decide how it spends its money.
CNSW will continue to advocate for improvements to insurance and membership offerings for its members.