Cutting red tape could save charities millions
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Australian charities could save up to $29 million through reduced red-tape according to a new report. Cutting Red Tape, released by the Australian Charities and Not-for-profits Commission (ACNC).
ACNC Commissioner, Susan Pascoe AM, said that the ACNC shared the commitment of government agencies across Australia to reduce red tape for charities.
“The ACNC was set up to achieve three objects, one of which is reducing unnecessary regulatory obligations on the charity sector,” Pascoe said.
“Some progress has been made in this area, but as this report highlights, there is much more that can be achieved.”
Alexandra Gartmann, member of the Prime Minister’s Community Business Partnership welcomed the report.
“The Australian charity and not for profit sector fulfils a crucial need in our society, tackling many intractable issues and embedded disadvantage,” Gartmann said.
“Streamlining the complex and frustrating administrative and regulatory framework the charity and not for profit sector deals with, will unlock resources to focus on core activities and drive effort and investment to achieve greater impact and capacity for innovation.”
“I welcome this research report and the data it provides to inform change and decision making, and congratulate the ACNC on instigating a piece of work that will inform an issue that is a priority for the charity and not for profit sector.”
The Cutting Red Tape Report, produced by Deloitte Access Economics focussed on three key areas of charity regulation; fundraising, incorporated association legislation, and state and territory taxation.
“This report follows the release of the 2014 Commonwealth regulatory and reporting burdens report also commissioned by the ACNC,” Pascoe said.
“The 2014 report undertaken by Ernst and Young surveyed nearly 400 charities to cost the impact of Commonwealth reporting requirements on registered charities.”
The Cutting Red Tape Report proposes three options for red tape reduction:
- existing ACNC obligations could fulfil state and territory regulatory requirements
- align state, territory, and ACNC regulatory obligations
- the ACNC could become a central regulatory body for charities
Pascoe commended the red tape reduction initiatives taken by many of the states and territories and the collaborative working relationship between the state and territory government officials and the ACNC.
“The ACNC will continue to work with the state and territory government agencies to implement practical measures to reduce red tape for charities. Red tape reduction will be a priority for the ACNC in 2016 and beyond,” said Pascoe.
