Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

I move:

That the Senate take note of document 28 listed on today's Order of Business.

I take this opportunity to bring to the attention of the Senate the tardiness of the Albanese government in responding to orders for the production of documents, and, in this particular case, deliberately withholding documents so that a Senate inquiry was unable to use them in its committee deliberations and reporting processes. Aside from what this says about how the government views its responsibilities to this chamber, it is of grave concern to the dedicated not-for-profit organisations across the country. They are dealing with the fallout from the mishandled implementation of the Australian Taxation Office's new tax-exempt reporting requirements for not-for-profits, which has been characterised by conflicting information and an administrative burden many smaller organisations simply cannot handle. It's another example of the government's habit of meeting with stakeholders, only to ignore their concerns and fail to act on their recommendations.

This pattern is especially troubling considering the government was briefed in March 2024 on the policy's implementation challenges and had ample opportunity to address them. Despite this, it has failed to take the necessary action to meaningfully improve the experiences of those impacted. Witnesses representing organisations as diverse as Agricultural Shows Australia, Stonnington Scottish Country Dancers and Landcare Australia appeared before the Senate Economics References Committee to share firsthand accounts of the damage this rollout is inflicting on our community. These are organisations that, for generations, driven by their selfless efforts as volunteers, have helped bring relief to the most vulnerable members of our community and deliver important services. Yet, in the midst of an unprecedented cost-of-living crisis, the government is choosing to burden them with an administrative nightmare.

The Australian Multicultural Action Network pointed to the lack of an accessible online portal, a basic function the ATO has failed to implement. The reality is that volunteer turnover is high, and this is the case among many organisations that are predominantly volunteer run, forcing volunteer treasurers, many of whom have limited accounting knowledge, to navigate a labyrinth of confusing requirements and advice that can hardly be considered simplified and streamlined as the ATO seeks to claim. The Community Council for Australia, a leading voice in the sector, stated clearly and unequivocally that the Australian Taxation Office was repeatedly warned of the detrimental impact these new requirements would have, particularly on smaller organisations, but their pleas and those of many others have fallen on deaf ears. As CEO David Crosbie put it during the hearing: 'You call that a consultation. I call that a dismissive approach to our sector.' The Law Council of Australia, recognising the disproportionate burden on smaller organisations, advocated for a reasonable threshold exempting those with lower revenues from these onerous demands. Yet the Australian Taxation Office and the government continue to ignore these potentially mitigating suggestions, and its implementation has made this a policy that is no longer with its original intentions.

I return to the government's lack of transparency on an order for the production of documents which I moved and which this chamber agreed to in relation to this particular issue. The Minister representing the Treasurer failed to meet her obligation to table all records of communication between the ATO and relevant parties by the 10 September deadline. This tabling didn't occur until 1 November 2024. That is 52 days late. This delay wasn't accidental; it was a calculated move to suppress information about potential problems and criticisms of the policy's rollout. By withholding these records, the government directly hampered the committee's ability to properly examine the implementation process, to hold accountable those responsible for any failure and possibly to make recommendations of greater use to the not-for-profit sector. This lack of transparency demonstrates a blatant disregard for accountability and a continuing attempt to manipulate the inquiry.

I urge the government, and especially Minister Andrew Leigh, to recognise the distress and frustration this rollout is causing volunteer led organisations; to immediately extend the reporting deadline further still to provide much-needed relief while this situation is worked through; and to rethink its approach and explore alternative implementation pathways, possibly involving the ACNC, that are more appropriate and less burdensome for smaller not-for-profits. The not-for-profit sector is the lifeblood of our community. They deserve a government that listens, understands and acts to support, not hinder, their vital work. It's time for the government to bridge the obvious disconnect between the ATO's perception of its responsiveness to the sector and the sector's experience and to deliver a fit-for-purpose policy for all involved.

Debate adjourned.