Productivity Commission recommends significant sector reforms

The establishment of an Office for Not-For-Profit Sector Engagement and a Registrar for Community and Charitable Purpose Organisations are just two of many reforms put forward in the Productivity Commission's long awaited draft report Contributions of the Not-for-Profit Sector.

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To consolidate regulatory oversight, and enhance public transparency, the Commission proposes a ‘one-stop-shop’ for Commonwealth-based regulation in the form of a Registrar for Community and Charitable Purpose Organisations.

Registrar for Community and Charitable Purpose Organisations responsibilities:

  • Incorporation and regulation of companies limited by guarantee, commonwealth incorporated associations, Aboriginal Corporations, and any new not-for-profit entities.
  • Registration of Tax Concession entities charitable institutions and funds, PBIs, DGRs and other tax benefited bodies, registration for national fundraising.
  • Single reporting portal to drive common accounting and reporting reforms.
  • Register cross jurisdictional fundraising organisations.
  • Fast track harmonisation of state/territory fundraising legislation.

The Commission suggests that the proposed Office for Not-For-Profit Sector Engagement be located within the Prime Minister’s portfolio to give “a much needed focus to improving the sector’s engagement with the Government, and a business, and stimulate sector-wide policy development.”

Office for Not-For-Profit Sector Engagement responsibilities:

  • Take the lead in reform planning and implementation.
  • Monitor and action the implementation of the National Compact.
  • Reform Government contracting.
  • Encourage social innovation funding.
  • Provide high level government leadership for a community and business engagement.