Coalition pledges stronger voice for charities and not-for-profits

Amid an ongoing cost-of-living crisis, communities have relied heavily on you, your volunteers and the many services you provide.

On behalf of those Australians, and the Coalition, I thank you for your incredible efforts.

What you continue to deliver is particularly impressive given you face many operational headwinds of your own.

The cost-of-living crisis has run in tandem with a cost-of-doing-business crisis, which has seen a challenging combination of increased demand for your services and skyrocketing overheads.

NFPs that tackle food insecurity, for example, will know that 34% of Australians faced food insecurity last year, with 74% of them at risk of going hungry for the first time.

Given all this, the sector requires the greatest possible support to continue its work, not increased red tape, insufficient consultation, or other factors that make what you do harder rather than easier.

As I travel around Australia, in city and regional communities, red tape is always flagged as a major concern, and it was raised as a top issue on the episode of the Not-for-profit Agenda that I joined late last year.

Despite this, the Albanese government has repeatedly ignored or deliberately disadvantaged the interests of the sector since it came to power.

It embarked on changes to the Fair Work legislation that affected the ability to hire staff on short-term contracts, which, as you know, is common practice in charities and not-for-profits due to funding arrangements.

Working alongside sector representatives who had found the relevant minister’s door closed, I gathered support in the Senate for an order that would have required the Albanese government to make public how it had arrived at its decision – including a failure to consult with not-for-profit organisations.

I only withdrew this threat after then Minister Tony Burke gave a written undertaking to hear the sector’s concerns. Since then, a temporary exemption has been granted while an acceptable longer-term solution is found.

Unfortunately, it was a similar story with the bungled roll-out of the changes to not-for-profits’ tax reporting requirements – and it required a similar approach.

That roll-out was marred by a lack of clear communication and the careful implementation necessary to make it work, leaving volunteer-run organisations overwhelmed, confused and short-changed.

This was something the Albanese government and the ATO (Australian Taxation Office), in particular, refused to admit. The ATO maintained that its efforts to engage with and support not-for-profits were progressing well.

The experiences of affected organisations painted a very different picture – once again, they were frustrated and ignored.

I established a Senate Economics References Committee inquiry in the later part of last year to give these not-for-profits and associated stakeholders a voice.

Many were confused, being forced to pay for expensive professional advice they could not afford, or in some instances deciding it was easier to wind up their much-needed operations.

Improved communications, an extended reporting deadline and revisiting some of the thresholds involved were among our recommendations to deliver this policy in a way that not-for-profits can understand and operate under.

Once again, it was disappointing that the Albanese government let it get to this point – rather than proactively backing the Australians doing so much for other Australians.

We enter the new year with optimism, but many more challenges lie ahead in 2025.

It is essential we prepare for the rapidly evolving digital landscape, including the impact of AI, digital infrastructure, and the ever-rising need for strong cybersecurity measures.

Much more must be done to pave the way to doubling philanthropic giving by 2030, a goal supported by the Albanese government and the Coalition alike.

This includes delivering on the election commitments made to the sector, which under this government have arrived frustratingly late, or not at all.

It is regrettable that the Albanese government and Minister Andrew Leigh have failed to act with the urgency needed to meaningfully reform and better support the sector, both now and into the future.

Through all this your resilience has shone through, and your persistence in providing the services you do with such dedication is an inspiration to all.

After two and a half years in my role as the Shadow Assistant Minster for Charities, it has become clear to me that the charities and not-for-profits sector needs a voice in a government that takes the work they do, and the challenges they face, seriously.