Home News Regulation and Compliance Commonwealth Government response to the Standing Committee on Economics Senate inquiry into disclosure regimes for charities and not-for-profit organisations
Commonwealth Government response to the Standing Committee on Economics Senate inquiry into disclosure regimes for charities and not-for-profit organisations PDF Print E-mail
Regulation and Compliance
Tuesday, 11 August 2009 22:06

Some while ago the Senate Inquiry into Disclosure Regimes for Charities and Not‐for‐Profit Organisations released its report. The government has now released its response to that report. Unfortunately, that response is basically “Watch this space.”

One of the government’s problems is that it has set up a large number of inquiries into aspects of the community sector (including tax, governance, monitoring, and effectiveness) run by different agencies (including the Productivity Commission, the Tax Inquiry, and the Senate) and reporting on different timelines – so it can’t really make any real policy changes until all the results are in.

That said, it’s notable that the government’s first response to the Senate committee’s suggestions don’t betray any great enthusiasm for rushing into change.

For example:

  • The Committee recommended that “all Australian Governments agree on common terminology for referring to organisations within the Sector.”
    In response, the Government has agreed in principle but will wait for the Productivity Commission report and see whether that will “assist in developing a framework which could underpin standard definitions and terminology”.
  • The Committee recommended that “the Government establish a unit within the Department of Prime Minister and Cabinet specifically to manage issues arising for Not‐For‐Profit Organisations… [to] report to a Minister for the Third Sector”.
    The Government hasn’t agreed to do this, even in principle. It’s simply noted that “the Department of the Prime Minister and Cabinet currently provides co‐ordination on these issues across government. This recognises that other departments have responsibilities that intersect with the third sector and are often more suited to provide overall policy guidance”.
  • The Committee recommended that “there be a single independent national regulator for Not‐For‐Profit  Organisations” and has recommended a National Fundraising Act.
    The Government has noted these tips, but it doesn’t seem keen to intervene, saying “State and Territory Governments regulate fundraising activities in accordance with their own legislation.”

Taking that last point; that’s exactly the problem – all the states have different systems, and many won’t allow interstate organisations to fundraise at all. It’s a total shambles, and the only way to sort it out is for the Commonwealth to take the initiative.

It’s worth looking through the whole list of the government’s comments on the Senate recommendations.

The danger is, of course, that as the forthcoming reports are dribbled out one by one there will be no point where the Government is pressed to take the hard decisions and no time when we can look at the whole picture.

Courtesy of ourcommunity.com.au