Budget aims to cut charity red tape
May 7, 2011
An independent regulator for Australia's not-for-profit sector will be set up in next week's budget, with the aim of cutting the red tape that burdens the sector.
The sector has long been burdened by rules at state and federal levels that require them to write numerous reports for different government departments.
"We will make sure your dollar is actually going to the purpose you gave it to."
The new independent body will seek to streamline reporting requirements and is expected to review the rules that govern the sector.
The new body will also take over some duties from the Tax Office in deciding whether a group qualifies as a charity.
The chairman of the Community Council for Australia, Tim Costello, says the changes will save time and money.
"We will make sure your dollar is actually going to the purpose you gave it to, rather than on overheads for government departments and multiple reports," he said.
"The community benefits - they just want to see the not-for-profit do good and the not-for-profit is not besieged."
The CEO of the Community Council, David Crosbie, says the reform has been a long time coming.
"These changes have been recommended for over 20 years," he said.
The not-for-profit sector employs around 900,000 people and contributes $43 billion to the Australian economy.
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