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ACT and SA Can Do It – Time for Others to Act!

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Media Release: ACT and SA Can Do It - Time for Others to Act!

Today’s announcement that the Australian Capital Territory will join the South Australian government in exempting nationally registered charities from also having to register in the ACT has been warmly welcomed.  More charities are now questioning why other states are not offering the same level of support to charities when the case for change is so clear.  

Rev Tim Costello, Chair of CCA and CEO of World Vision said,‘after decades of discussion, it is very pleasing to see ACT and SA joining the Federal government in supporting real reforms for the charitable sector.  We want charities to be able to get on with what they do best, not get bogged down in unnecessary red tape.  The ACT commitment to freeing up charities is welcomed.’

According to David Crosbie, CCA CEO,‘the charities sector employs more than one million Australians and turns over approximately $100 billion.  Despite its size and importance, this sector is drowning in a sea of pointless duplication and compliance, mostly imposed by well-meaning but misguided bureaucracies at both a Federal and State government level.  Today’s announcement is great for ACT charities, and SA is already on board, but what about the rest of Australia?’

Toby Hall, CCA Board Director and CEO of Mission Australia said, ‘it is great to see ACT adopting a common sense approach towards charity sector regulation, an approach all states and territories would be wise to follow. It will save time and money for both charities and governments.’

Dr Stephen Judd, CCA Board Director and CEO of Hammond Care said, ‘the Productivity Commission report into the charitable sector found unnecessary government compliance requirements are increasing, costing the sector millions of dollars in administration.  ACT is to be commended for helping reverse the trend so charities can focus more on their real purpose.’

Mr Crosbie said charities would like to see all governments adopting the same approach, ‘most governments talk about wanting to support the charitable sector, but these statements are often just decorative policy words rather than a commitment to real action.  The Federal, ACT and SA governments have backed up their rhetoric with action that will actually make a real difference to the sector.  Other governments need to get on board.’

The newly established Australian Charities and Not-for-profit Commission plans to introduce a ‘charities passport’ that establishes the bona fides of a charity.  Currently, if charities want to run a national fundraiser or seek a payroll exemption, they have to register separately with each State. 

  Contacts:     David Crosbie  0419 624 420

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Remove Gag Clause Legislation Welcomed!

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Media Release: Remove Gag Clause Legislation Welcomed!

Today the Finance Minister Penny Wong will introduce into the Senate a motion banning gag clauses in all Federal government contracts with the not-for-profit sector.

According to Rev Tim Costello, Chair of the Community Council for Australia (CCA) and CEO of World Vision, ‘this is a welcome move that acknowledges the important role of charities and not-for-profit organisations in our communities.  Civil society is at its best when the voice of the not-for-profit sector can be heard loud and clear.  The removal of gag clauses is a critical part of the reform process, and one charities and not-for-profits will strongly welcome.’

Rev Costello was joined in his support for the measure by leaders across the not-for-profit sector.

 According to David Crosbie, CEO of CCA,‘it is indefensible to impose conditions on not-for-profit organisations that limit their capacity to pursue their work.  Not-for-profits must be able to advocate for improvements in our lives and our communities.  The removal of gag clauses from all Commonwealth contracts is one good measure of the relationship between governments and the not-for-profit sector.  It is a measure we would expect all governments and all political parties to endorse.  It is a measure of respect.’

Others to offer support included Toby Hall, CEO of Mission Australia; Dr Lisa O’Brien, CEO of the Smith Family; Jayne Meyer-Tucker, CEO of Good Beginnings; and Dr Stephen Judd, CEO of Hammond Care.  All these leaders emphasized the importance of an independent not-for-profit sector.

The not-for-profit sector currently employs around one million Australians and turns over almost $100 billion annually making it one of the most economically significant sectors in Australia.

The new legislation banning gag clauses reinforces core statements within the National Compact agreement signed by the Federal government and leading not-for-profit organisations.  It also highlights concerns about the introduction of gag clauses in Queensland. 

Mr Crosbie said, ‘CCA will always strongly reject politically motivated government contractual control over the independent operations of charities and not-for-profit organisations.’

Contact:    David Crosbie  0419 624 420

Remove Gag Clause Legislation Welcomed! Read More »

COAG Regulatory Impact Assessment Of Potential Duplication Of Governance & Reporting Standards

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COAG Regulatory Impact Assessment Of Potential Duplication Of Governance & Reporting Standards

Introduction

This submission briefly outlines the Community Council for Australia (CCA) response to the COAG Regulatory Impact Assessment of potential duplication of governance and reporting standards for charities (RIA) consultation paper.

The CCA Board and members believe the issue of duplication in regulatory requirements for charities and more broadly for the not-for-profit (NFP) sector is a critical issue. 

It is important to note that this submission has been prepared through a process of consultation with the membership of CCA (see Attachment 1 list of CCA members) and other key organisations in the NFP sector.  This submission does not over-ride any positions outlined in individual submissions from CCA members. 

CCA commends the government and COAG officials for the process adopted in developing this consultation paper, including seeking input from the NFP sector and other interested groups.  

CCA is particularly pleased that the RIA consultation paper provides a clear set of options and encourages interested stakeholders to provide input.

Ideally, this initiative of reviewing duplication as it applies to charities will be expanded over time to become a more complete review of the broader regulatory and compliance burdens imposed all NFP entities.

CCA looks forward to ongoing discussion and input in relation to these important matters. 

COAG Regulatory Impact Assessment Of Potential Duplication Of Governance & Reporting Standards Read More »

Media Release: Appointment of Charity Champions Welcomed

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Media Release: Appointment of Charity Champions Welcomed

Rev Tim Costello, CCA Chair and CEO of World Vision said ‘The Community Council for Australia welcomes the appointment of Mr David Crosbie to the new Australian Charities and Not-for-profit Commission Advisory Board.  Mr Crosbie is a respected leader in the not-for-profit sector and has proven to be a strong and capable advocate for the not-for-profit sector.  His appointment is a testimony both to his skills and experience, and to the important work of CCA’

Rev Costello also welcomed all the other appointments to what he described as ‘an important body that will provide advice to Australia’s new independent regulator for all Australian charities.’

Rev Costello was speaking following today’s announcement by Minister Mark Butler and Assistant Treasurer David Bradbury of the inaugural appointments to the ACNC Advisory Board.

Mr Crosbie said he felt privileged to be able to serve on the new ACNC Advisory Board, especially in this critical establishment phase.

‘This is an exciting and challenging time in changing the way governments do business with the not-for-profit sector.  Susan Pascoe, the ACNC Commissioner, Robert Fitzgerald, and the other members of the Advisory Board make up a formidable team.  It is a great honor to be chosen to work with them to serve the not-for-profit sector.  The challenge for all of us is to ensure the ACNC delivers real benefits to the broader not-for-profit sector,’said David Crosbie, the CEO of CCA.

Mr Crosbie pointed out that the charities and not-for-profit sector is critical, not only employing one million Australians and turning over more than $100 billion each year, but also providing the support that enables our communities to be strong and resilient even in tough times. 

Toby Hall, CEO of Mission Australia said; ‘if we are going to support our not-for-profit sector, we need to get the regulatory and taxation environment right.  This new ACNC Advisory Board must lead the way in ensuring there is less compliance and red tape imposed on the charities and the not-for-profit sector.  They are good people, but they face some real barriers from a broad range of regulators, including State and Federal bureaucracies.’

For more details on the members and role of the ACNC Advisory Board please see:  http://www.acnc.gov.au/ACNC/About_ACNC/Corporate_info/ACNC_advisory/ACNC/Edu/Advis_Board.aspx

Media Release: Appointment of Charity Champions Welcomed Read More »

The FBT discussion – what is the CCA position?

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The FBT discussion – what is the CCA position?

In developing policy related to taxation concessions provided to the charities and not-for-profit sector, CCA has consistently adopted a longer term view of what might best serve the sector’s interests, both now and into the future.

It is worth noting that some very influential people, including Ken Henry and a number of senior government ministers have argued that what the sector should be striving for is appropriate terms and conditions for all employees.  The not-for-profit sector should not have to rely on tax concessions to recruit or retain staff.

While CCA agree with this approach in principle, it is clear that at present the sector does not provide employees with the level of financial rewards that are available in other sectors.  At least for the time being, some form of concession is required, particularly for lower paid employees across the sector.

Within this context, the questions we might ask about the future of the Fringe Benefit Tax concessions relate more to whether they are appropriately targeted and provide a good return on investment for the sector.  We need to ask whether the current cost of the FBT concession could be better directed supporting a different approach in providing a wage advantage to those employed in the charities and not-for-profit sector?

Any examination of the FBT concessions reveals that the benefits of the FBT concession have both eroded over time and increasingly favored the highest paid employees in the sector.  Advantages such as uncapped meals allowances and the capacity to claim multiple exemptions enable higher paid employees to gain significant pre-tax income that can be spent in restaurants, function centers and with travel agents.  These provisions clearly favor those with incomes above $150,000 much more than they do those earning less than $60,000.  A Victorian medical specialist working at three hospitals earning over $300,000 can claim three FBT concessions (over $50,000 tax free) and spend $100,000 of their income tax free on travel, meals and venue hire expenses.  This level of benefit is not available to lower paid employees.

The inequity in the FBT concessions makes it more difficult to justify, especially in comparison with some alternative approaches. 

It is for these reasons that CCA argued for further investigation of alternative models including the modeling of a straight income tax concession for all staff employed in charities.  If FBT was phased out and the personal income tax free threshold was increased by $15,000 for all charity employees, what would be the real costs and benefits?

CCA has supported the proposal to cap the meals allowance and to restrict multiple claiming of FBT exemptions, but it has also argued that all savings from these measures should be redirected to enable 15,000 smaller charities to gain Deductible Gift Recipient status.  This would mean most charities could receive tax deductible gifts from Trusts, Public and Private Ancillary Funds, high wealth individuals and the broader community.

The complexity of these issues has meant that at times the CCA position has been misrepresented in the media and in some associated discussions.  CCA has never argued there should be no tax concessions or that government should be clawing back money from the sector.  The CCA position is essentially that over time we need to better target our existing tax concessions.  It is this position that CCA put forward in our response to the Not-for-Profit Sector Tax Concessions Working Group Discussion Paper in December 2012.

You can access this submission on our website, and if you have any concerns or would like to talk through this issue in more details, we would welcome your feedback.  

The FBT discussion – what is the CCA position? Read More »

Media Release: Finally – charities given a voice

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Media Release: Finally - charities given a voice

‘The new regulator for Australian charities represents a coming of age that will enable the whole sector to grow and change for the better. Well done to all those who have delivered this major reform,’ said Rev Tim Costello, Chair of Community Council for Australia (CCA); CEO of World Vision. 

After decades of discussion, numerous reports and recommendations, the Australian Charities and Not-for-profit Commission (ACNC) will be officially launched today in Melbourne by Assistant Treasurer David Bradbury at Charcoal Lane in Fitzroy. The charities and not-for-profit sector employs over 1 million people and has an annual turnover of $100 billion.  Leaders from across the charities and not-for-profit sector have welcomed the launch of the ACNC, seeing it as a critical reform.

David Crosbie, CEO of the CCA said; ‘charities are choking on a dog’s breakfast of regulations and compliance.  The establishment of the ACNC will not only reduce red tape, but give voice to a sector that has been neglected for far too long.  We need to use this collective voice to hold the new regulator to account, build capacity, strength and innovation across the charities sector.’

Toby Hall, CEO of Mission Australia said; ‘if we want our communities to flourish, we must support our not-for-profit sector and get the regulatory environment right.  The ACNC is a critical part of that support.  I commend all those involved in establishing the ACNC and I am looking forward to working with my colleagues to ensure this new regulator can fulfill its promise.’

Dr Lisa Obrien, CEO of the Smith Family said;‘the establishment of the ACNC is an important acknowledgement of the significant role of the charities and not-for-profit sector in Australia and the sector’s growing importance for Australia’s future wellbeing.’

Rev Keith Garner, CEO of Wesley Mission said; ‘the value of the work carried out by charities in Australia cannot be over-stated.  It has seemed strange to me that the Australian Taxation Office would be the default regulator for charities.  I am looking forward to having our own charities passport and achieving a real reduction in red tape and compliance costs.’

Jayne Meyer Tucker, CEO of Good Beginnings Australia said; ‘this is such an important first step – an important step in Australia’s Not For Profit future.  We commend those involved who have worked so hard for so long to make this big step forward a reality.’

CCA have previously highlighted that at present in Australia, every time a charity interacts with funders and regulators – whether it is to gain a local council concession on rates, a state government approval for fundraising or an Australian Taxation Office concession – they have to prove they are a charity and establish their bona fides.   The new ACNC charities passport will cut through much of this red tape.   The ACNC will report annually to Parliament and to the not-for-profit sector.

Contact:        David Crosbie   0419 624 42

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If SA can do it, why not other states?

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Media Release: If SA can do it, why not other states?

Today’s announcement that the South Australian government will not require nationally registered charities to further establish their bona fides has been warmly welcomed, but some are questioning why other states are not offering the same level of support to charities.  The not-for-profit sector employs more than one million Australians and turns over approximately $100 billion each year.

Rev Tim Costello, Chair of CCA and CEO of World Vision said,‘after decades of discussion, it is very pleasing to see the South Australian government joining the Federal government in showing some leadership to support the charitable sector.  We commend this agreement between SA and the Federal government as part of the larger not-for-profit reform agenda.’

According to David Crosbie, CCA CEO,‘the charities sector is drowning in a sea of red tape, duplication and compliance, mostly imposed by well-meaning but misguided bureaucracies at both a Federal and State government level.  Today’s announcement shines some light at the end of the not-for-profit reform tunnel.  Now if we can just get this train moving …’

Toby Hall, CCA Board Director and CEO of Mission Australia said, ‘great to see South Australia is leading the way with a common sense approach towards charity sector regulation that all states would be wise to follow. It will save time and money for both charities and governments.’

Dr Stephen Judd, CCA Board Director and CEO of Hammond Care said, ‘The Productivity Commission report into the charitable sector found unnecessary government compliance requirements are increasing, costing the sector millions of dollars in compliance.  SA is to be commended for starting to reverse the trend so charities can focus more on their purpose, and less on red tape.’

Dr Lisa O’Brien, CCA Board Director and CEO of The Smith Family said,‘Removing compliance costs for charities is always welcome, especially in areas like national fundraising requirements that create such an administrative nightmare for national organisations like The Smith Family.’

Mr Crosbie questioned why other State and Territories were not joining with SA in supporting the not-for-profit sector?  ‘Governments around Australia talk about wanting to support the charitable sector by cutting red tape and reducing the compliance burden on not-for-profits, but these statements are usually just decorative policy words rather than a commitment to real action.  The Federal and SA governments have backed up their rhetoric with action that will actually make a real difference to the sector.  Other governments should get on board.’

Legislation to establish the ACNC is currently before the Senate. The ACNC intends to introduce a ‘charities passport’ that establishes the bona fides of a charity.  Currently, if charities want to run a national fundraiser or seek a payroll exemption, they have to register separately with each State. 

  Contacts:     David Crosbie  0419 624 420 

If SA can do it, why not other states? Read More »

Media Release: Time for governments to respect charities!

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Media Release: Time for governments to respect charities!

‘There have been decades of discussions about the relationship between governments and not-for-profit organisations.  The time has come for all governments to respect charities, to free them up from unnecessary red tape and compliance, and to enable them to do what they do best – support the communities they serve.  Civil society is at its best when the voice of the not-for-profit sector can be heard loud and clear.  The removal of gag clauses is a critical part of the reform process, and one charities and not-for-profits will strongly welcome,’ according to Rev Tim Costello, Chair of the Community Council for Australia (CCA) and CEO of World Vision. 

Rev Costello was speaking in support of today’s announcement that the Federal government will legislate to ensure the removal of gag clauses from all Commonwealth contracts with charities and not-for-profit organisations.  He was joined in his support for the measure by leaders across the not-for-profit sector.

 According to David Crosbie, CEO of CCA,‘Feudal lords treated their serfs better than the way some governments treat the not-for-profit organisations they contract to deliver vital services.  The recent behavior of the Queensland government in imposing gag clauses on health organisations is reprehensible.  The imposition of conditions limiting the capacity of not-for-profits to fulfill their primary mission of trying to achieve positive change in their communities is indefensible. The removal of gag clauses from all Commonwealth contracts is one good measure of the relationship between governments and the not-for-profit sector.  It is a measure we would expect all governments and all political parties to endorse.’

Others to offer their support included Heather Neil from the RSPCA and Dr Stephen Judd from Hammond Care, who both emphasized the importance of an independent not-for-profit sector.

The not-for-profit sector currently employs around one million Australians and turns over almost $100 billion annually making it one of the most economically significant sectors in Australia.

The new federal government initiative to ban gag clauses reinforces the National Compact agreement signed by the Federal government and leading not-for-profit organisations.  It also partly addresses growing concerns about the introduction of gag clauses in Queensland. 

According to Mr Crosbie, ‘No-one is sure exactly what the Queensland government ‘no advocacy’ clauses will mean for a community health center that supports the push for better mental health services, an aboriginal health service backing their community to achieve restrictions around alcohol sales, or any group trying to change things for the better for their clients and their communities.  CCA strongly rejects this form of government contractual control over the independent operations of not-for-profit organisations.’

Contact:  David Crosbie (CEO) 0419 624 420        

Media Release: Time for governments to respect charities! Read More »

Media Release: Time for action on charities!

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Media Release: Time for action on charities!

‘After decades of discussion, the time has come for real reform for the charitable sector,’ according to Rev Tim Costello, Chair of the Community Council for Australia (CCA) and CEO of World Vision. 

‘We have waited a long time to have an independent regulator dedicated to serving the interests of the not-for-profit sector.  Many charities are drowning in a sea of compliance, duplication and red tape that provides very limited benefit to anyone.  The sooner we can make real progress in reducing this wasted effort, the more time and effort charities can devote to doing what they do best – making a real difference for our communities.’

David Crosbie, CEO of CCA said ‘The Economics Committee has generally made some very positive suggestions that will improve the proposed new regulator for the sector, and there is no case for delaying the establishment Bills further.  The Australian Taxation Office is currently the default gateway to charitable status, a situation that many groups, including the Productivity Commission, have said is unacceptable.  The not-for-profit sector is too important economically (employing over 1 million Australians) and socially not to benefit from this proposed reform.’

Rev Tim Costello and Mr Crosbie were speaking after the tabling in Parliament today of the House of Representatives Economics Committee Report into the Bills to establish the Australian Charities and Not-for-profit Commission (ACNC). 

CCA have previously highlighted that at present in Australia, every time a charity interacts with funders and regulators – whether it is a local council concession on rates, a state government approval for fundraising or an Australian Taxation Office concession – they have to prove they are a charity and establish their bona fides.   The proposed new ACNC will establish a charities passport which is being developed to cut through much of this red tape.   Once established, the ACNC will have to report to Parliament and to the not-for-profit sector who will be closely monitoring the work of the ACNC. 

Rev Costello said, ‘for an organisation like World Vision, it is often difficult to explain to people overseas that we do not have a ‘charities registration number’, that Australia does not have a charities regulator, and that copies of letters from the ATO are our way of proving that we are a genuine charity.’

CCA has consistently argued that while the ACNC is not a silver bullet solution to all problems besetting the charities sector, it is a fundamental reform that over time will enable not-for-profit organisations to focus more of their resources on serving their communities and less on wasteful duplication, red tape and compliance.

The revised Bills to establish the ACNC are expected in the Parliament within the next two weeks.

The report can be read in full at: http://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=economics/nonprofit/report.htm

Contact:          David Crosbie (CEO)                                      0419 624 420

Media Release: Time for action on charities! Read More »

The ACNC – Are we there yet?

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Media Release: The ACNC - Are we there yet?

On Friday July 6, 2012 the Assistant Treasurer the Hon. David Bradbury MP and the Minister for Social Inclusion the Hon. Mark Butler MP released the second exposure draft of the legislation to establish the first independent regulator for the charity and not-for-profit sector in Australia, the Australian Charities and Not-for-profits Commission (ACNC). With the legislation referred to the House of Representatives Standing Committee on Economics for inquiry, over 65 submissions received and two days of public hearings now complete, CCA’s CEO David Crosbie comments on the journey so far…

It has been a long time coming – the independent regulator for the NFP sector is almost here – but it has been a rather potholed journey.

The first time we got sidetracked was the battle to have the regulator operate independently from the ATO. And what a battle that was.  It took all the skills of our CCA Chair and many key leaders across our sector to finally win not only a commitment to independence but also a significant new budget allocation.  The then Assistant Treasurer Bill Shorten told me it had been quite a tough battle both through Cabinet and the Expenditure Review Committee process.

Next came a discussion paper from Treasury which could be described in many terms, but certainly not as re-assuring or supportive of the sector.  Some wanted to turn around and go back, but of course the idea of going back to the dog’s breakfast of regulations and compliance driven by Treasury gatekeeping soon had people facing the front again.  Many submissions, discussions and consultations later, the first Exposure Draft Bills were provided to CCA for comment, and comment we did as some of the provisions seemed, at best, to be ill conceived.

While the initial documents from Treasury made the journey unbearable, the newly established ACNC Task Force consultations and Implementation Reports gave us the cushioning we needed to keep going.  In fact, I would urge anyone concerned about the way the ACNC will operate to take the time to look at the Implementation Report, something many people who gave evidence to the latest Economics Committee Inquiry had not bothered to do.

Over the last couple of weeks the Bills to establish the ACNC have been the subject of much discussion, submissions and public hearings.  At times I think some people have confused enabling legislation (as outlined in the Bills) with operating guidelines (as outlined in the Implementation Report).  Despite some of the scaremongering, we need to remember that all regulators operate within a framework of actions, not just laws (we would live in a very different world if black letter law drove all our behavior – but that is another discussion.)

CCA raised a number of concerns and areas where we thought the Bills could be improved, but also pushed that the ACNC was a long overdue reform that could drive real reductions in red-tape and positive changes in the relationship between governments and the sector.

We now await the report from the Inquiry Committee and the next version of the ACNC establishment bills – both of which are expected in the next couple of weeks. CCA has been assured by the Minister’s office, Treasury officials and the Chair of the Economics Committee that our concerns are being taken on board and we will find comfort in both the recommendations of the Committee and the final bills to be introduced into parliament.

I feel like a kid squashed between my brothers in the back of my parent’s car, having spent most of our long and uncomfortable journey negotiating the rules that will apply when we finally arrive at the beach.  I can hardly wait to make a splash …

If you have any questions or would like more information about the ACNC bills, the inquiry or what to expect going forward, please contact CCA.

YOU CAN:

Read CCA’s Submission to the Inquiry
Read the Hansard Transcripts from the public hearings

Read David Crosbie’s latest opinion piece on the ACNC in Pro Bono News
Subscribe to ACNC updates via the ACNC Taskforce website

The ACNC – Are we there yet? Read More »