The government has tabled the Australian Charities and Not-for-profits Commission (Repeal) (No. 1) Bill 2014 to disband the commission, a move the IPA sees as too hasty.
Andrew Conway, IPA chief executive officer, said the institute supports “the position of giving the ACNC more time to make it work”.
Mr Conway said that while the IPA agrees conceptually around reduced and harmonised regulation for the not-for-profit sector, simply repealing the act and disbanding the commission disregards the significant progress that has been made by the ACNC.
“In particular, there has been very good work done to enhance transparency and accountability, streamline the reporting process, reduce regulatory duplication and gain the trust of a significant portion of the [not-for-profit] sector,” he said.
“We are concerned that a change in the regulatory regime will risk the loss of this momentum and benefits derived to date from the ACNC Act”.
Mr Conway said the IPA is also concerned that problems identified under the previous regulatory framework may resurface with the return of regulatory oversight to two regulators, ASIC and the ATO.
“The ability to provide a consistent regulatory framework and reduce regulatory duplication from a sector that continues to grow may be lost,” he said.
The IPA has said it supports the idea of the future establishment of the National Centre of Excellence.
“The IPA further recommends that the ACNC Act and the performance of the ACNC be formally reviewed in late 2015, allowing a suitable timeframe for the National Centre of Excellence concept and other proposals to be further developed,” said Mr Conway.
“This will also allow for broader community consultation to occur.”