Governments have been known to change their mind on specific issues from time to time. However, the news to keep the Australian Charities and Not-for-profits Commission (ACNC) open surprised many spectators. Plans to close the independent commission has been in the works since 2013, and after two years of speculation, their decision to keep the regulator in business was confirmed

The Minister for Social Services, Christian Porter and the Minister for Small Business and Assistant Treasurer, Kelly O’Dwyer confirmed that the decision was made after extensive consultation with the stakeholders.

Broad support was received by the social sector after the announcement was made

Sarah Davies, one such supporter and CEO of Philanthropy Australia said, “A well-regulated charities sector is important for funders as well as the wider community, and the ACNC has been working hard to deliver on that objective.”

CEO of the Australian Council of Social Services, Dr. Cassandra Goldie made a similar comment. “It is encouraging that the Turnbull government is listening and have reacted to what the sector has been saying. This decision will benefit all Australian communities through a better regulated and supported charities sector”. 

The Government has since renewed their interest to work closely with the ACNC to remove any duplication of charities and increase accountability and transparency issues.

The ACNC regulates approximately 60,000 charities and NFPs and has in the past closed down hundreds of dodgy charities. Therefore, finding an alternative body to manage this issue should the ACNC have closed down would have been extremely problematic for all involved.

In terms of the regulation of charities, the ACNC assists by registering charities, collecting information, reducing red tape by working with other agencies, providing guidance and monitoring compliance while at the same time, managing non-compliance.

The ACNC has announced that it would be staying true to its original objectives.

Objective 1: to maintain, protect and enhance public trust and confidence in the sector through increased accountability

Objective 2: support and sustain a robust, vibrant, independent and innovative not-for-profit sector

Objective 3: promote the reduction of unnecessary regulatory obligations on the sector.

These objective will remain firmly in place although much of the red tape from a charity’s perspective will be given much due diligence in the wake of its reprieve. It will be interesting to see what changes will be made now that the Commission has been retained.

More information about the current state of transitional reporting provisions can be found on the ACNC website.