Canberra moving too slowly on sector reform: survey

As the nation gears up for a federal election in the coming weeks, a new survey by the Community Council for Australia has revealed charities’ frustration at the government’s failure to act on its own reform agenda.

The Australian Charities State of the Sector Report (Part 2), which rated the government on its delivery of charity policy, found widespread sector disappointment at Canberra’s failure to help ease the burden of organisations delivering urgent cost-of-living help to those most in need.

Two out of three leaders polled criticised government inaction on a range of important issues affecting the sector, including:

• cutting red tape

• ensuring the safety of volunteers

• paying charities what it actually costs to deliver the services funded by government grants.

The report found substantial, targeted action is needed to bridge the gap between policy commitments and outcomes to ensure charities can continue to support the Australian community.

One sector leader who took part in their survey did not hold back on their frustration at the perceived glacial pace of reform.

"When are they going to start doing things?"

Community Council for Australia CEO David Crosbie said the survey results were disappointing.

“At a time when so many Australians are relying on charities to survive this cost-of-living crisis it’s disappointing and frustrating that the government has failed to deliver on so many of its promises to help the sector.

“These findings raise urgent questions about how effectively the Government is delivering on its promises to safeguard the heart and soul of our communities, the charities and not-for-profit sector.”

The survey, conducted by Piazza Research, gauged the views of the CCA Charity Expert Panel – a group of 56 leaders and CEOs from key charity and not-for-profit organisations – on the effectiveness of government commitments to the sector.

Key findings include:

• 77% of leaders said there was insufficient action to ensure government tenders and grants adequately funded staffing levels, fair wages and conditions
  

• 84% responded negatively to the lack of progress in cutting red tape and reducing costs
  

• 70% of leaders highlighted the lack of progress in efforts to recruit volunteers and ensure safety, particularly in the context of natural disasters and covid.

The research also revealed frustration at a chronic lack of progress helping charities bridge the technological divide.

Other areas in which the sector wanted less talk and more action included reforming funding models to allow long-term planning and implementation of the 2010 Productivity Commission Report recommendations on the not-for-profit sector.

The findings mirror concerns raised by Opposition Charities spokesman Senator Dean Smith, who has previously lashed the federal government over the pace of sector reform.

“I’ve got to applaud the not-for-profit sector because you’ve demonstrated great patience,” said Senator Smith in an interview on the Not-for-Profit Agenda news webcast last November, referring to the slow progress on the Productivity Commission's inquiry into philanthropy, the Department of Social Services' review of community sector funding, and the NFP Sector Development Blueprint.

Smith promised that if elected, a federal Coalition government would be more responsive to the needs of the sector than the current Labor government.

Crosbie said the CCA had previously warned that the cost-of-living crisis had put so much additional pressure on the sector that some charities were cutting back on services.

“For years charities have been saying the real costs of providing services to our communities is much higher than the funding being provided,” he said.

"The ongoing lack of substantive progress in critical areas – especially those that directly affect the operational capacity of charities – highlights the misalignment between the Government’s stated priorities and its execution.”

Part 1 of the CCA State of the Sector Report, released in December, examined the confidence and overall state of Australia’s charity sector.