The AAC is supporting the establishment of the Niseko project, using the corporate experience of people who have been associated with similar alpine lodge projects in Australia.  The AAC has almost sixty years experience in developing alpine lodge projects.  AAC Niseko is affiliated with the AAC, but is self-governing with its own committee. 

AAC Niseko is a non-profit association incorporated in the State of Victoria.  Incorporation is based upon the model rules developed by Consumer Affairs Victoria in the Victorian Department of Justice to protect AAC Niseko members from any debts and liabilities of the association.  The incorporation and rules are similar to other existing AAC projects.  AAC Niseko has a committee comprising several of its members to represent their interests. 

: Membership is open to anybody of good character with an interest in snowsports and enjoying the ambience of an alpine lodge environment.  Membership is not restricted to Australian residents or citizens.  Membership availability has been widely promoted within the Australian snowsports community.

The membership model is similar to other AAC projects and based on individual membership.  In common with other AAC projects, ‘family membership' has not been the model adopted because it is often difficult to determine the boundaries (e.g. at what age do children no longer qualify, varying family sizes and different family arrangements).  A ‘family membership’ structure would be more complicated and each membership interest would need to be considerably more expensive.  It would also discriminate against single members and create difficulties with reciprocal booking rights at other AAC projects.  There is, however, no restriction on the number of members of a family that may wish to join AAC Niseko.  Like other AAC projects, AAC Niseko is a non-profit club for its members, not a time-share scheme. 
At existing AAC projects typically one or both parents are members and their children (or other guests) accompany them at the applicable guest rate.  In these circumstances, the members make the booking and others, including family, are booked as their guests.  Guests of AAC Niseko members will have booking priority over other guests.  Guests will pay higher accommodation rates than members (who have an equity debenture interest in the AAC Niseko project).

Debentures are financial instruments and therefore do not incur Australian GST.  Debentures will be saleable (through the committee).  Similar to other AAC projects, a non-refundable joining fee of A$500 applies to AAC Niseko membership following the lodge acquisition. 

As an incorporated association, AAC Niseko must operate in compliance with the requirements of the Victorian Department of Justice.  ProAcct Pty Ltd, an accounting firm that specialises in managing the affairs of similar non-profit club (including two other AAC projects), audits AAC Niseko annually.  Unlike other alpine lodge projects in Australia (except Dinner Plain) AAC Niseko enjoys the security of a lodge on freehold title, rather than leasehold land. 
The AAC has been fostering alpine lodge projects for almost sixty years and it has five other alpine lodge projects operating in Australia.  It is a non-profit organisation and none of its office-bearers derive any income from their involvement. 

Debentures will be sold through the AAC Niseko committee, in common with the practice at other AAC projects.  The debentures are traded through the committee because there might be circumstances in which a potential new member was unsuitable for membership.  It is also undesirable to create a situation in which debentures in the project might be subject to speculative behaviour.  The aim is to stay within the non-profit taxation and legal requirements. 
There will be considerable flexibility in these arrangements, with AAC Niseko members able to transfer their debenture to other members of their family or sell it to another unrelated person, subject to that person being approved.  Alternatively, if requested, AAC Niseko would sell the debenture to another unrelated person wishing to join, with the original debenture holder paid the value of the debenture. 

No interest or dividends are paid on the debentures.  AAC Niseko is an incorporated non-profit association and any surplus generated by the project would be directed to the repayment of any loans, enhancements to the lodge or retained as contingency.

The future value of debentures should reflect the value of the underlying asset.  It is not possible or appropriate to predict future changes in the value of debentures in the AAC Niseko project, other than to note that membership interests in similar AAC projects have increased substantially over time. 

It is not possible to preclude forever a future capital call on AAC Niseko members for things such as major capital works if so decided by the AAC Niseko membership; however such calls on the membership are extremely rare in AAC projects largely due to the concessional loan facilities shared between AAC projects.  The cost of AAC Niseko membership increased from A$5,000 to A$6,000 in 2006 to reflect the rising property prices in Niseko, but AAC Niseko members who joined in 2005 were not required to contribute any additional capital. 

An annual fee may apply in the future but it is not envisaged at this stage.  For reference, other AAC projects typically have annual subscriptions of about A$200 per year for adult members.

Outdoor Travel Japan has been engaged to manage bookings.  Detailed booking information is available through www.aacniseko.com.  Members will make their own travel arrangements to Japan, unbundled to ensure greater choice and transparency. 

The ‘Niseko Club’ lodge is located in the Hirafu Izumikyo 2 area of Niseko.  Shuttle bus stop D is immediately at the front of the lodge.  Please see http://aacniseko.blogspot.com/2007/10/location.html for details. 

Membership application forms are available here and can also be downloaded from our www.aacniseko.com website.  Our accountants at ProAcct Pty Ltd can assist with matters such as the processing of membership applications. ProAcct can be contacted during business hours on (03) 9880 9600 or by e-mail to Jenny Hood at jhood@proacct.com.au.

Additional information about the project is available through the www.aacniseko.com website.  Specific questions can be e-mailed to aacniseko@ozemail.com.au (or telephone 0408 526 787).  Updates on the project will also be made available through www.aacniseko.com.