Government Plan to Cut NFP Red Tape
Monday, 30th March 2009 at 4:59 pm
The Rudd Government says it will start to implement a plan to slash red tape in the Not for Profit Sector following representation from charities and other Not for Profit groups.
The decision was made at the COAG Business Regulation and Competition Working Group (BRCWG) meeting held in Melbourne.
The BRCWG agreed to start work immediately on how to implement a standard Chart of Accounts and a nationally consistent approach to fundraising.
A recent Senate Inquiry found that overlapping and inconsistent regulation of the sector created an unnecessary compliance burden as well as hindering efforts to increase its transparency and accountability.
The sector is subject to 178 state and federal statutes and reports to 19 government entities and 74 other agencies.
Senator Ursula Stephens attended the first BRCWG meeting for 2009 to discuss reform options with the states and territories. The push to slash red tape in the Not for Profit sector follows a meeting between 40 Sector groups and Parliamentary Secretary for the Voluntary Sector, Ursula Stephens, in December.
Senator Stephens says the current inefficient and unproductive arrangements put extra pressure on charities and other organisations who are wasting valuable resources on dealing with cumbersome red tape.
For example, she says, when a charity wishes to pursue a fundraising drive across Australia, it is required to comply with six fundraising laws, including seeking a licence from six different ministers or regulators.
The BRCWG will also look at further reform opportunities following completion of current reviews in the sector.