Louise Markus (Macquarie, Liberal Party) Share this | Hansard source

It is hard to believe that members opposite would argue that the Australian Charities and Not-for-Profit Commission (ACNC) Repeal Bill 2014 would actually result in more red tape when the ACNC, when it was introduced by members on the opposite side in the then government, the Labor government, actually introduced another layer of bureaucracy. What has happened and what we have seen happen since is that other layers of bureaucracy in the states are still requiring charitable organisations to provide them with reporting and information which, in fact, provides other layers of bureaucracy. So this bill today is another product of this government's determination to deliver on its election commitments.

In opposition the coalition opposed the establishment of the ACNC because it imposed an unnecessary compliance burden on very vital sections of our civil society. The abolition of the ACNC is an election commitment that this government intends to fulfil. Labor set up the ACNC because it did not trust the charitable sector. We believe that the charitable sector is composed, by and large, of good people, many volunteering and donating their time, their effort and their finances to make a significant contribution and a difference not just in the local communities but in this nation and often in nations that are vulnerable around the globe.

This government takes the approach that the charitable sector can be relied upon, that the charitable sector has a determination to manage itself responsibly according to the highest standards. Not-for-profit organisations are geared towards providing essential services to the community—not profit. Moreover, states have not relinquished their responsibility to regulate the charitable sector to the ACNC. Consequently, the bulk of charities are subjected to regulatory requirements from more than one jurisdiction. For charitable organisations that operate across the whole of the nation this is multiplied.

The abolition of the ACNC is also an important component of our red-tape reduction agenda that will lessen the regulatory compliance burden on charities. In June 2013, when the Charities Bill 2013, along with the Charities (Consequential Amendments and Transitional Provisions) Bill 2013, was introduced to this parliament, I spoke against its adoption. I stood before this parliament and declared that the bill would not benefit charities. Labor's charities bill sought to change the public's understanding of charities to conform with their distrust of the sector's capabilities and their disbelief that the sector could conduct itself honestly. I would like to remind the House of the definition of charities; a definition that is unilaterally understood. The definition of charities is 400 years old. Common law has served us well. Since Federation, the definition of charity has remained clear and consistent. It has remained a cornerstone of what constitutes charitable endeavour and what constitutes charitable activity in this nation.

The Labor government pushed through the legislation that triggered suspicion and mistrust of this essential sector of civil society. Labor is accusing this government of not seeking thorough enough consultation with the sector before the consideration of this bill. May I remind the members opposite that the public consultation phase on the draft definition of the words 'charity' and 'charitable purpose' presented by the previous Labor government was open to consultation for less than four weeks. Apparently, Labor thought they knew better than 400 years of history and simultaneously thought nothing of redefining definitions that have served the sector so well. Why depart from 400 years of clarity and consistency?

I clarified to the parliament at the time that the coalition would seek to repeal this bill if elected. The government is committed to community consultation, and we take seriously the importance of empowering the charitable sector within our society. The charitable sector itself has, at its heart, the goal and the purpose of empowering those they serve to overcome barriers and disadvantage, thereby enabling the most vulnerable in our society to fulfil their potential.

In September 2012, the coalition first announced its intention to abolish the ACNC, and Minister Andrews has discussed this policy agenda with hundreds of sector's stakeholders, both before and after the September 2013 election. Therefore, the government rejects Labor's argument that there has been inadequate consultation.

Support for ACNC abolition from such organisations as Universities Australia and the Association of Australian Medical Research Institutes demonstrates that the government's civil society agenda enjoys wide support in the not-for-profit charities sector. In its submission to the Senate Economics Committee inquiry into ACNC repeal bill, Universities Australia made clear their view:

No public interest objective is advanced by the ACNC, imposing additional governance standards obligations on the university sector, which is already more thoroughly and comprehensively regulated by another government agency—the Tertiary Education Quality and Standards Agency.

The Association of Australian Medical Research Institutes, AAMRI, also expressed concerns with regard to the ACNC Act:

The ACNC Act has not been successful in consolidating and streamlining financial reporting requirements … AAMRI contends that the ACNC charity passport, which aims to reduce duplicative reporting across federal, state and territory legislatures, is unlikely to work to significant benefit

The coalition's commitment to the people of Australia is to abolish the ACNC, which represents another strand in the pile of Labor red tape that is being systematically and methodically eliminated by the coalition government.

This has been the intention of this government for some time. This is not a new initiative. The government introduced the Australian Charities and Not-for-profits Commission (Repeal) (No. 1) Bill 2014 on repeal day in March as part of a two-stage legislative process leading to the abolition of Labor's superfluous regulations for charities and not-for-profits. We have been up-front about this. The ACNC has introduced a new and unnecessary layer of administration, duplicating regulatory requirements for charities with those already imposed by states. The ACNC has established a new reporting framework that requires all registered charities to provide an annual information statement. Charities continue to be regulated by the respective state and territory authority, both if they are an incorporated association or an unincorporated body. The legislation to create the ACNC was rushed through parliament by Labor and the Independents in the House, and then by Labor and the Greens in the Senate. By abolishing the ACNC, the coalition will deliver on our commitment to reduce complexity for charities and not-for-profits.

The coalition's approach to the charitable sector is based on the belief that Australian charities and not-for-profit organisations strengthen our nation through their contribution to communities right across Australia. We are not going to hinder that with unnecessary regulation. We will establish a new National Centre for Excellence, with ownership transitioning to the sector. The centre will focus on education, innovation and training, and it will work to advocate for and empower the sector to achieve the outcomes that they identify as vital for the communities and people they serve.

The government values the dedicated service and contribution that civil society provides locally, nationally and internationally. We believe it is vital that we empower this sector. We understand that the charitable sector plays a role and fills a gap that the government never could.

Before entering parliament, I worked as a social worker for some 25 years. My work meant I was on the ground seeing firsthand the work of the charitable sector. The many organisations that make up the charitable sector are trusted pillars in the community. There are the Red Cross, St Vincent de Paul, the Wesley Mission and the many not-for-profit small organisations that work on a daily basis for the most vulnerable in our community. There are other charitable organisations, like Sydney City Mission, who work for the homeless, Heed the Cry Appeal, and Blue Mountains Cancer Help within the electorate of Macquarie. They have an indelible impact on our communities.

Families, lone parents, the seniors in our society and our young people who are battling to identify how they can move forward, rely on the helping hand, strength and commitment of these organisations. The passion of these organisations is to bring support and hope and respond to the needs of those who are our most vulnerable.

Instead of making it easy for civil society, the ACNC has made it harder, with increased and duplicated regulatory burdens discouraging involvement in voluntary and community endeavour. Many Australians would not know that the ACNC has been granted more power than the regulators of the corporate sector. Under its legislation the ACNC requires more information from civil society, from yet another agency of government, and it has increased reporting requirements.

The government has already delivered greater certainty to civil society through our current reform of grant and contracting arrangements that provide longer contracting periods. This provides more certainty to social-service providers, enabling them to make plans more easily on leases and operational and staffing matters.

In place of the ACNC, the government will establish a Centre for Excellence, the ownership of which will be transitioned to the sector itself. I, like many on this side of the House, am passionate about the sector taking ownership of self-regulation, and applying the expertise and experience it has to offer. The new Centre for Excellence will promote innovation and education and training within the sector and will advocate for the sector.

This government is serious about providing real support to civil society, including our plan to cut red tape and our plan to simplify reporting requirements and provide greater certainty through streamlined contracting arrangements. The last thing that the coalition wants to do, especially in these fiscally difficult times, is to hamper the activities of our civil society in delivering on its aspirations. I commend the bill to the House.

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