Rebekha Sharkie (Mayo, Centre Alliance) Share this | Hansard source

Charities and not-for-profit organisations are the bedrock of our communities, especially in my electorate of Mayo, where we have one of the highest rates of volunteering in the country. However, the government has dragged its feet on proceeding with reforms that would remove a range of unnecessary obstacles facing charities, some of which are particularly urgent in the intensely online world of COVID-19.

I have two particular concerns regarding the regulation of charities that I believe need urgent attention. My first concern relates to the process by which charities receive their tax-deductibility status, known in the jargon as deductible gift recipient, DGR, status. It is best illustrated in two brief stories. I have an NGO in my electorate which does excellent work and clearly fits the environmental DGR category. They put in their application and did everything right, and then they waited. And followed up. And then they waited. And then they followed up again. And then waited. After more than 16 months of frustration, they got in touch with my office. My office contacted the relevant branch of the environment department, who were required to undertake an initial assessment. They proclaimed that the application had been sent to Treasury many months ago, and the hold-up was Treasury. My office then called Treasury the next day, only to learn that the application had been received the day before. About 40 phone calls later to both Treasury and the Assistant Treasurer's office, the application was finally approved. The organisation was perfectly eligible. There were no complications in the paperwork. It shouldn't be this hard.

I have another organisation in my electorate that provides veterinary services during emergencies such as bushfires. They applied for DGR status but were told by the unit in Treasury that they did not fit any category. They were then actively encouraged to withdraw their application, which means that they would not need to be considered anymore. The NGO representative said that they would consider it, only to find that their application was then closed off. When the summer bushfires hit and badly damaged my electorate, the organisation was still struggling with the bureaucrats to get their application considered. Thankfully, the Assistant Treasurer's office was able to help my office use the emergency to get their application over the line. It was considered to be an animal welfare charity, which should surprise absolutely no-one.

The DGR system is clunky. These two stories are just a couple that I'm sure are felt in 151 electorates across Australia. This shows the need we have for reform. In particular, the specific list process is woefully ill-equipped to deliver outcomes. Yet, in response to my question in writing on the matter, the government said they had 'no current plans to review the DGR specific listing process'. That is, I believe, simply unbelievable and unacceptable.

The second issue of concern I wish to raise is the lack of transparency in the remuneration of executive management in large charities. Having worked in the sector, I'm deeply concerned that some charities have executive pay cheques in the many hundreds of thousands of dollars, with bonuses, but with no meaningful accountability. They don't need to put it on their annual return. They can stack boards with their mates and put themselves on wages in excess of the Prime Minister's. Donors deserve transparency around where their donations are going and whether their altruism is being cannibalised by top-heavy executive pay packets.

Recommendation 15 of the legislative review found that large registered entities should be required to disclose the remuneration paid to responsible persons and senior executives on an aggregated basis. I was pleased to see that the government has agreed to implement this recommendation, and I strongly urge them to proceed with this reform as soon as possible. It is issues such as this that are making many people in our community concerned about giving their hard-earned money to charities. We need people to continue giving in our nation in order for us to get through the crisis of COVID and bushfires and support our community generally.

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