Assistant Treasurer David Bradbury says the legislation will build on the Federal Government’s reforms to the not-for-profit (NFP) sector by ensuring gag clauses are not used in any Commonwealth funding agreements.
“Our reforms recognise and embrace the critical role the sector has in advising and developing public policy and in advocating on behalf of members and constituents,” said Mr Bradbury.

The move comes as the Queensland Government’s Health Department reintroduces gag clauses in some of its contracts.

“The past few weeks in Queensland have reminded us of the dark days of the last Coalition government, when John Howard attacked the rights and legitimate role of the NFP sector and diminished its capacity to represent and advocate for its members,” says Federal Minister for Mental Health and Ageing Mark Butler.

In 2008, the Labor Government removed the gag clauses imposed by the former Coalition Government that restricted the sector from engaging in policy and political debate.

“Now we’re seeing Campbell Newman try to do the same in Queensland,” says Butler.

Federal Minister for Community Services, Indigenous Employment and Economic Development Julie Collins said gag clauses censor public debate.

“Labor’s approach is starkly different to the decade of no reform, no vision and no action we saw from the previous Coalition Government for this vibrant and important sector,” say Collins.