The federal government is currently considering submissions made to the Review of Australian Charities and Not-for-profits Commission (ACNC) Legislation, which aims to evaluate both the performance of the legislative framework and the regulation of the sector.
Accounting bodies like the Institute of Public Accountants (IPA) believe the regulation of the sector is due for a shake-up.
“Considering the fact that charities and NFPs make up 8 per cent of Australia’s GDP, it is important that the ACNC legislation is well supported and regulated,” said IPA chief executive officer, Andrew Conway.
“The IPA believes that the current objectives of the ACNC legislation remain relevant and valid but this would be better supported by a single, national regulatory regime for registered NFP entities,” he said.
“Federal, state and territory governments should be urged to pursue a single, national regulatory regime for incorporated associations so that there is a single national register for these entities,” he added.
In its submission to government, the IPA is also pushing the government to consider further research into the governance and financial reporting practices of NFP entities, which should include activities of NFPs that are regulated in other regimes.
This review comes after five years of operation, and also coincides with a government-backed review of reporting requirements for charities.