Canberra moving too slowly on sector reform: survey

Posted on 24 Feb 2025

By Greg Thom, journalist, Institute of Community Directors Australia

Charities and not-for-profits have delivered a damning scorecard on the Albanese government’s lack of progress in addressing key sector concerns.

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?"

On the Government’s commitment to reforming and harmonising fundraising laws across Australia to make fundraising easier:

"We have been talking about the fundraising reforms for well over a decade.
Harmonisation should save time and money for public services. How can it be so hard?"

On the Government’s support for charities advocating for their cause:

"Charities and NFP community groups have been on the back burner. We are not a priority for the Government. They promised to improve advocacy support, which has been done by ending the war on charities, but it should not stop there."

On the Government’s tangible delivery of its promises to the sector:

"Words mean a lot, and it has been great to see the positive tone and engagement with the NFP sector from the Albanese Government. However, actions speak louder than words, and commitments need to be followed through."

“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.”

Community Council for Australia CEO David Crosbie.

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.

Community Council for Australia CEO David Crosbie.

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.

Charities minister Andrew Leigh has consistently cited positive steps taken by the Albanese government to support the charities and not-for-profit sector, saying it has:

improved the deductible gift recipient (DGR) system by creating a new pathway for community foundations to access tax deductible status

streamlined the DGR application process for environmental organisations, harm prevention charities, cultural organisations, and overseas aid organisations

introduced legislation to give the ACNC greater discretion to comment publicly on harmful breaches of compliance, to better support public trust and confidence in the regulatory framework

appointed a widely respected charity sector expert, Sue Woodward, to head the ACNC

refreshed the ACNC Advisory Board to be more representative of the charity sector, bringing First Nations, CALD and youth voices onto the Board

sent a clear signal that charitable advocacy is supported and welcomed by this government

worked with state and territory governments to streamline and harmonise fundraising rules across jurisdictions.

funded a new General Social Survey with new questions on participation in volunteering and involvement in cultural events and cultural activities, and providing insights reflecting the impact of giving, participation, and purpose driven activity.

Source: Charities Minister Andrew Leigh

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.

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