Abolishment of ACNC no longer a priority

The Governance Institute, an independent professional association with a sole focus on the practice of governance supports Morrison’s stance.

“We’ve made it very clear from the onset that we do not support the repeal of the Australian Charities and Not-for-profits Commission (ACNC), so we are hopeful that this announcement is an encouraging sign that the government is living up to its new commitment to listen to and engage with stakeholders,” says Judith Fox, Director of Policy, Governance Institute.

“The ACNC’s light-touch approach, its success in lifting accountability and governance standards and its significant contribution to education have finally given the charities sector much-needed visibility.”

Last year, the first comprehensive, evidence-based research of the charity sector, using information held on the ACNC’s Charities Register, revealed that it contributes significantly to the nation’s gross domestic product (GDP) and employs more people than the mining, agriculture, forestry and fishing industries combined.

Charities employ nearly one million people across Australia, equating to eight per cent of Australia’s workforce, and have a combined total income of more than $100 billion.

“Research has shown that Commonwealth funding acquittals are imposing a greater burden on charities than reporting obligations to the ACNC. The regulator is not causing the compliance burden,” says Fox.

The ACNC was the first step in establishing a one-stop shop, national regulatory framework for the sector and moving it away from the burdensome dual compliance regime where charities that are incorporated associations are subject to both state and federal regulation.

“Importantly, the governance information collected populates the ACNC’s Charity Register, which is at the heart of charity regulation. It provides a free, online, credible, searchable database on charities. The public and donors can – for the first time – identify bona fide charities by searching the Register.

“The Government’s decision to step back from abolishing the ACNC is a move in the right direction.

“The sector has gained a reprieve after a long period of uncertainty and the focus can move to abolishing dual regulatory compliance with the states,” concluded Fox.

Sarah Harding

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