ARCHDIOCESE OF SYDNEY REPORT:
Catholic Communications, Sydney Archdiocese,
20 Jul 2012
The Government's Australian Charities and Not-for-Profit Commission (ACNC) Bill is a heavy-handed power grab that gives extraordinary powers to bureaucrats to reach into the affairs of charitable organisations across Australia and remove individuals for any breach to the law or to its new complex reporting requirements and regulations.
"Under the provisions of the draft bill, individuals working in the charitable sector ranging from a local priest ministering to his parish through to the Archbishop of a diocese could be suspended or removed by the Commission," warns Coalition MP, Kevin Andrews, Shadow Minister for Families, Housing and Human Services.
Mr Andrews has criticised the Government's revised ACNC bill and questioned the Government's decision to allow less than two weeks for public submissions to the House of Representatives Economics Committee's Inquiry into the bill.
The closing date for public submission to the ACNC Inquiry closed today giving the charities and non-for-profit sector just two weeks to make a submission.
"It is just ridiculous to give the sector 11 days to make submissions when the government has held the detail of its plan secret for so many months," Mr Andrews says and points out the majority of Australia's voluntary and charitable organisations that will be affected by the bill do not have the staff, finances or the time to put together a submission in the brief period of time allotted.
Describing the Government's revised bill as "an entirely unwarranted heavy-handed intrusion into the activities of Australia's charitable sector," Mr Andrews says a Coalition government, if elected next year, will rescind the bill along with the Commission's regulatory enforcement and policing powers.
As a former employee, a board member and an ongoing volunteer with a number of not-for-profit bodies over more than three decades, he accuses the Government of not only rushing this bill through without proper consultations but of regarding charities and not-for-profits through narrow economic terms.
"The fact that the Inquiry is being conducted by the Economics Committee is a perfect example of this," he says and insists any inquiry should also be looking at the broad and diverse range of services carried out by charities and non-for-profits, and the work many do in caring for society's vulnerable, weak, ill, poor, disabled and in need.
Currently Australia has more than 600,000 charitable and voluntary organisations ranging from small sporting clubs, community groups to parish charities to the large well known welfare and Not-for- Profit agencies such as CatholicCare, St Vincent de Paul Society, Red Cross, RSPCA, Surf Life Saving Australia, Uniting Care, Mission Australia, the Salvation Army, Caritas and Anglicare.
Under the proposed bill, the Commission would require mandatory registration by the charities and not-for-profits that employ full time staff, have a significant tax base and seek Commonwealth tax concessions and exemptions.
"Over the past two decades, the outsourcing of services previously delivered by government has resulted in an increase in government support to not-for-profits," Mr Andrews explains. But he is quick to point out that many charitable organisations exist with limited government funding support.
He also notes that while reporting is mandatory for some charities, all are being encouraged to register with the Commission which the Government says will "streamline" its interaction with charities and help reduce the "regulatory burden" placed on them.
Mr Andrews reports that in the 2006-7 financial year Australia had 320,000 paid employees in the charitable sector with more than 4.6 million helping out as volunteers.
According to the Australian Bureau of Statistics the contribution made by this relatively small group of paid staff and the massive army of volunteers to Australia's economy in that year accounted for $43 billion, or 4.1% of GDP.
"People engage in charitable activities usually because they believe it is appropriate, that this is something they can do to help others. From a Christian perspective, it is all about helping your neighbour," he says and adds that despite the some 600,000 charitable organisations and not-for-profits operating across Australia, ranging from small unincorporated groups to incorporated associations, there have are very few instances of financial misappropriation and none involving widespread fraud.
But while the Government has put forward no evidence of any cases of non-compliance by charitable entities, the ACNC bill has started "from a premise of distrust and the assumption maybe somebody is doing something wrong," he says.
"Under this extraordinary reach by the government into the affairs of civil society, the bill assumes people who give their time and efforts, often in a voluntary capacity, are untrustworthy and tainted," he says.
Although the ACNC was originally conceived as a body to support charities and not-for-profits and enhance their contribution to society, Mr Andrews says the Commission's role appears to be more about policy and enforcement with expanded regulatory and reporting requirements.
Instead of cutting red tape as charities and not-for-profits were originally promised, the ACNC Bill instead introduces even more bureaucracy. Mr Andrews also says the Bill is ambiguous with excessive powers. There has not yet been any commitments by state or territory governments to co-operate with the proposal to achieve harmonisation of the myriad regulations that currently exist and impact already on the non-for-profit sector.
Also if the ACNC Bill is enacted as currently drafted, the Catholic Church will have some of its entities regulated under state and territory law, some under the Commonwealth law and most with a mix of multiple jurisdictions.
In other words without a commitment to harmonisation between Commonwealth, State and Territory Governments, there is a substantial risk that the introduction of the ACNC Bill will only add to the already heavy, cumbersome and complex regulatory burden on charities and non-for-profits. And Mr Andrews claims that will inevitably lead to a sharp rise in costs for the sector's already financially-strapped agencies and organisations.
To cope with the additional complex regulations and financial reporting required under the bill, agencies both big and small will be forced to employ or redeploy staff to cope. Funds may also have to be redirected from the core work of the charity or not-for-profit to cover the cost of lawyers and legal counsel to address the Government's plan to change the common law definition of a charity to a statutory definition.
For many years whether an organisation is a charity or not has been determined by the "Public Benefit Test" and after yet another inquiry, was yet again endorsed as recently 2008 by the Henry Review Report and again in 2010 in a comprehensive report by the Productivity Commission.
A statutory definition is to be determined by the Commission. How it will develop and determine this legal definition remains unknown with the Government giving no details.
The new statutory definition is set to take effect from July next year when legal experts predict charities and not-for-profits will be forced into expensive litigation as different groups try to work out what the new, uncertain and untested definition might mean.
Mr Andrews says if returned to government, the Coalition would retain the current common law definition of charity and maintain the Public Benefit Test. The Coalition would also retain the present regulatory powers held by the Australian Tax Office and Australian Securities and Investment Commission and not transfer them to the Commission as proposed under the ACNC bill.
"The Coalition recognises there is a place for a national body to enhance the role of institutions in civil society," Mr Andrews says and while the it does not support the government's proposed model, if elected it would establish its own much smaller independent national body to coordinate, assist, help train and support charities and not-for-profits, foster research and innovation and act as advocates on their behalf.
"We believe in working with the sector, not directing the sector and treating it as an extension of the state," he says.
Stephen Elder, Director, Catholic Education Office Melbourne, Victoria and Director, Australian Institute for Teaching and School Leadership (AITSL) also has some very serious concerns about the draft legislation for the education sector.
He says the proposed Bill's disclosure requirements and public access regime is invasive and aggressive especially compared to reporting requirements of government schools. Catholic schools will face additional financial and other compliance reporting which will duplicate and complicate their already strong regulatory and financial accountability processes.
"The focus should be on promotion, education and support of NFPs to improve regulatory reform not punitive or excessive powers," Mr Elder said.
"Also will the ACNC have jurisdiction in respect of government schools which raise their funds for their own charitable purposes to ensure a sector neutral and level playing field that is currently occurring within Australian government reforms such as Australian Curriculum, Assessment and Reporting Authority (ACARA)?
"Until the ACNC is a truly one-stop shop, its reasons for being are fundamentally compromised," Mr Elder added. SHARED FROM ARCHDIOCESE OF SYDNEY
Catholic Communications, Sydney Archdiocese,
20 Jul 2012
CatholicCare parentline helps families
across Australia
across Australia
"Under the provisions of the draft bill, individuals working in the charitable sector ranging from a local priest ministering to his parish through to the Archbishop of a diocese could be suspended or removed by the Commission," warns Coalition MP, Kevin Andrews, Shadow Minister for Families, Housing and Human Services.
Mr Andrews has criticised the Government's revised ACNC bill and questioned the Government's decision to allow less than two weeks for public submissions to the House of Representatives Economics Committee's Inquiry into the bill.
The closing date for public submission to the ACNC Inquiry closed today giving the charities and non-for-profit sector just two weeks to make a submission.
"It is just ridiculous to give the sector 11 days to make submissions when the government has held the detail of its plan secret for so many months," Mr Andrews says and points out the majority of Australia's voluntary and charitable organisations that will be affected by the bill do not have the staff, finances or the time to put together a submission in the brief period of time allotted.
Coalition's Kevin Andrews, Shadow Minister
for Families, Housing and Human Services
for Families, Housing and Human Services
As a former employee, a board member and an ongoing volunteer with a number of not-for-profit bodies over more than three decades, he accuses the Government of not only rushing this bill through without proper consultations but of regarding charities and not-for-profits through narrow economic terms.
"The fact that the Inquiry is being conducted by the Economics Committee is a perfect example of this," he says and insists any inquiry should also be looking at the broad and diverse range of services carried out by charities and non-for-profits, and the work many do in caring for society's vulnerable, weak, ill, poor, disabled and in need.
Currently Australia has more than 600,000 charitable and voluntary organisations ranging from small sporting clubs, community groups to parish charities to the large well known welfare and Not-for- Profit agencies such as CatholicCare, St Vincent de Paul Society, Red Cross, RSPCA, Surf Life Saving Australia, Uniting Care, Mission Australia, the Salvation Army, Caritas and Anglicare.
Under the proposed bill, the Commission would require mandatory registration by the charities and not-for-profits that employ full time staff, have a significant tax base and seek Commonwealth tax concessions and exemptions.
Volunteers help Vinnies serve 250000 meals
each year to Sydney's homeless
each year to Sydney's homeless
He also notes that while reporting is mandatory for some charities, all are being encouraged to register with the Commission which the Government says will "streamline" its interaction with charities and help reduce the "regulatory burden" placed on them.
Mr Andrews reports that in the 2006-7 financial year Australia had 320,000 paid employees in the charitable sector with more than 4.6 million helping out as volunteers.
According to the Australian Bureau of Statistics the contribution made by this relatively small group of paid staff and the massive army of volunteers to Australia's economy in that year accounted for $43 billion, or 4.1% of GDP.
"People engage in charitable activities usually because they believe it is appropriate, that this is something they can do to help others. From a Christian perspective, it is all about helping your neighbour," he says and adds that despite the some 600,000 charitable organisations and not-for-profits operating across Australia, ranging from small unincorporated groups to incorporated associations, there have are very few instances of financial misappropriation and none involving widespread fraud.
Stephen Elder
"Under this extraordinary reach by the government into the affairs of civil society, the bill assumes people who give their time and efforts, often in a voluntary capacity, are untrustworthy and tainted," he says.
Although the ACNC was originally conceived as a body to support charities and not-for-profits and enhance their contribution to society, Mr Andrews says the Commission's role appears to be more about policy and enforcement with expanded regulatory and reporting requirements.
Instead of cutting red tape as charities and not-for-profits were originally promised, the ACNC Bill instead introduces even more bureaucracy. Mr Andrews also says the Bill is ambiguous with excessive powers. There has not yet been any commitments by state or territory governments to co-operate with the proposal to achieve harmonisation of the myriad regulations that currently exist and impact already on the non-for-profit sector.
Also if the ACNC Bill is enacted as currently drafted, the Catholic Church will have some of its entities regulated under state and territory law, some under the Commonwealth law and most with a mix of multiple jurisdictions.
In other words without a commitment to harmonisation between Commonwealth, State and Territory Governments, there is a substantial risk that the introduction of the ACNC Bill will only add to the already heavy, cumbersome and complex regulatory burden on charities and non-for-profits. And Mr Andrews claims that will inevitably lead to a sharp rise in costs for the sector's already financially-strapped agencies and organisations.
Charities spend millions of dollars every year
on the homeless alone
on the homeless alone
For many years whether an organisation is a charity or not has been determined by the "Public Benefit Test" and after yet another inquiry, was yet again endorsed as recently 2008 by the Henry Review Report and again in 2010 in a comprehensive report by the Productivity Commission.
A statutory definition is to be determined by the Commission. How it will develop and determine this legal definition remains unknown with the Government giving no details.
The new statutory definition is set to take effect from July next year when legal experts predict charities and not-for-profits will be forced into expensive litigation as different groups try to work out what the new, uncertain and untested definition might mean.
Mr Andrews says if returned to government, the Coalition would retain the current common law definition of charity and maintain the Public Benefit Test. The Coalition would also retain the present regulatory powers held by the Australian Tax Office and Australian Securities and Investment Commission and not transfer them to the Commission as proposed under the ACNC bill.
"The Coalition recognises there is a place for a national body to enhance the role of institutions in civil society," Mr Andrews says and while the it does not support the government's proposed model, if elected it would establish its own much smaller independent national body to coordinate, assist, help train and support charities and not-for-profits, foster research and innovation and act as advocates on their behalf.
Of Australia's 105,000 homeless, more
than 12,000 are children under 12
than 12,000 are children under 12
Stephen Elder, Director, Catholic Education Office Melbourne, Victoria and Director, Australian Institute for Teaching and School Leadership (AITSL) also has some very serious concerns about the draft legislation for the education sector.
He says the proposed Bill's disclosure requirements and public access regime is invasive and aggressive especially compared to reporting requirements of government schools. Catholic schools will face additional financial and other compliance reporting which will duplicate and complicate their already strong regulatory and financial accountability processes.
"The focus should be on promotion, education and support of NFPs to improve regulatory reform not punitive or excessive powers," Mr Elder said.
"Also will the ACNC have jurisdiction in respect of government schools which raise their funds for their own charitable purposes to ensure a sector neutral and level playing field that is currently occurring within Australian government reforms such as Australian Curriculum, Assessment and Reporting Authority (ACARA)?
"Until the ACNC is a truly one-stop shop, its reasons for being are fundamentally compromised," Mr Elder added. SHARED FROM ARCHDIOCESE OF SYDNEY
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