House debates

Tuesday, 18 September 2012

Bills

Australian Charities and Not-for-profits Commission Bill 2012, Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012; Second Reading

5:20 pm

Photo of Dan TehanDan Tehan (Wannon, Liberal Party) Share this | Hansard source

Why doesn't it cover the unions? That's a surprise! They obviously were able to go to the government and say: 'We don’t want this amount of red tape put on us. We don’t want our backs broken by red tape. Please exempt us.' Why didn’t they do the same for the accountants, the lawyers, the church groups and the charity groups? I do not know. It is a good question—maybe we will get some answers when those on the other side speak on this bill. Or maybe they have run out of words now and they just want to usher this through as quietly as they can.

This bill is opposed by all those organisations and more, and the reason it is opposed is that it will drown them in red tape. We must ask: what is the government's motive, what is it driving at here? Why did it set up this commission? Is it trying to regulate these not-for-profit organisations and charities so that, after they are brought into this commission, the government will have the ability to tax them? Is this a plot to help try and achieve their fanciful budget surplus? They are prepared to attack these community groups, these not-for-profit organisations and charities, to try and obtain their budget surplus because of all their wasteful spending. Is this what this is all about? It is hard to tell, but hopefully we will get an idea.

The other thing which is important to raise here is that this cannot work without the states. If the states are not involved in this it will not work. What consultation was done with the state governments? My understanding is that none was done. The states have made it very clear that they do not want to go down this path because they do not want to burden these organisations with extra red tape. They understand that you do not set up a commission to reduce red tape that actually increases it. They do not want to head down the path of incompetence. That is why the government has not consulted with the states and has not been able to get them involved.

It is not only the burdening of these organisations with red tape which is of concern to us on this side; it is also the powers that this bill gives to the commission. The worst power of all is that, if the commission decides, it can revoke any registered entity. Where is due process here? What are the mechanisms for these community organisations or charities to say, 'Enough's enough. We're not going to let this big, regulatory body come in and crush us'? What if they say, 'No, we are not going to put up with it'? They could have their licence revoked as a registered entity. It is not only going to smother them; there is a big stick waiting there to whack them. No wonder the unions did not want to be part of this. Instead it is left for our poor old community organisations and charities to have to fight against this commission.

I am sure those opposite at some stage will ask: what is the alternative? Let us be clear that we have put up an alternative. We put up an alternative some time ago which is to: implement one contact with the department for each agency instead of multiple contacts; require the department to negotiate the content of the contracts with the agencies instead of simply imposing it upon them; simplify the auditing process to require only one financial report from each agency annually; and replace the current system of rolling audits with an initial benchmarking audit that has a period of five years with spot audits to be undertaken if the Commonwealth is made aware of any adverse contact on behalf of the agency. We will streamline the process. We will not set up a wonderful, big, new Orwellian commission to stifle or to create such red tape that these bodies will be spending more and more of their time dealing with the red tape rather than being able to do the wonderful charity work that they do.

Let us just stop for a minute and think back. As this new commission is being set up to break the backs of these charities and these community organisations with red tape, let us remember the commitment that this government gave in 2007. For every piece of red tape that was going to be introduced they were going to take one out. Where has that got to? What happened to that commitment? It has disappeared. It has absolutely disappeared. Now what we are seeing from this government is that, at every opportunity, they are increasing red tape and green tape wherever and however they can. I will say that this needs to stop because, if this government continues unabated, this country is going to drown in red and green tape.

I would say to the minister for clawback: forget about the clawback and concentrate on not breaking the backs of our charities and community organisations. If you keep doing it you are going to absolutely eat at the fabric of our society. These groups do such wonderful work within our communities that you should be doing everything you can to encourage their work, to help them with the great work they do, to help them raise the moneys so that they are able to give to those who are needy in our community, and to help those community organisations which keep our clubs and organisations going. They deserve government support. They do not deserve a government which wants to make it harder for them every step of the way.

I ask you again, step back, and think again. Say, 'This legislation is not going to do the job that it set out to do.' This is not a commission to reduce red tape; this is a commission to increase it. It is going to lead to perverse outcomes. It is going to do exactly the opposite of what it has been set up to do. Halt, stop, think and realise that this is another incompetent piece of legislation which has been rushed. Stop, step back and adopt the coalition way, because you can do this in a simpler and neater way which will enable these organisations to continue doing the great work that they do.

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