SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY
SENATOR FOR WESTERN AUSTRALIA
MEDIA RELEASE
24 February 2025
CHARITY LEADERS UNLEASH ON LABOR’S FAILURE TO DELIVER IN NEW SURVEY
The charity and not for profit sector has made its most damning assessment of the Albanese Government yet – venting its frustrations at the lack of support and policy progress under Labor at a time when it is most needed.
New charity leaders’ survey
A report released today slams Labor’s inaction since coming to power and notes how it is jeopardising the charitable organisations supporting millions of Australians through the Government’s own cost of living crisis.
It notes that “Charities and NFP community groups have been on the back burner”, that they are “not a priority for the Government” and asks when the Government is “going to start doing things”.
State of the Sector Report, Charity Policy Delivery: The Government’s Scorecard surveyed the 56 leaders and CEOs of major charities and not for profits who are part of the Community Council of Australia Charity Expert Panel.
Conducted by Piazza Research, the report reveals at least two thirds of charity leaders are critical of the Albanese Government’s failure to act and inability to progress key reforms aimed at improving the operational capacity of the sector.
Many of these reforms were Labor election promises in 2022, and the report observes that “actions speak louder than words, and commitments need to be followed through” – also noting there have been “lots of consultations and review processes”, but that these are “yet to see much action”.
The leading concern, voiced by nearly 85 percent of survey respondents, was Labor’s failure to cut the red tape burdening the sector.
Other issues highlighted include insufficient action to assist charities and not for profits in adapting to changing technology and updated models of funding that allow long-term planning.
Labor’s record of failure
The report mirrors long-standing criticisms from the sector – and the Coalition – that the opportunity to make vital progress to grow and future-proof charities and not for profits has been lost under Labor and Assistant Minister Andrew Leigh.
Its July 2024 Future Foundations for Giving Inquiry Report, whose stated aim was to “increase opportunities for philanthropic giving”, contained limited pathways to practically achieve this and left the national goal of doubling philanthropic giving by 2030 in doubt.
Labor’s Not-For-Profit Sector Blueprint, described as a “roadmap for Government reform and sector-led initiatives to boost the sector’s capacity to support and connect Australian Communities”, was announced in October 2022, but only released in December 2024 after the sector had struggled through one of the most challenging periods in its history.
Where Labor has attempted to act, its approach has been flawed and counterproductive.
Its rollout of new not for profit tax reporting requirements, for example, has seen hundreds of community organisations across Australia overwhelmed by new regulatory requirements because the Albanese Government provided conflicting advice and insufficient transitionary arrangements and support.
Labor also pursued changes under Fair Work legislation regarding fixed-term contracts that was incompatible with the way most charities receive funding and hire their staff – only finally agreeing to consult and grant the sector an exemption when Senator Smith, on behalf of the Coalition, achieved the support of the Senate to make public documents revealing Labor’s mishandling of the situation.
Comments attributable to Senator Dean Smith
“This report is clear confirmation of the frustration and disappointment charity and not for profit leaders and their organisations are feeling with the Albanese Government after three years of inaction.”
“Their anger and concern is justified – these have been the most challenging years in the sector’s history, with Australians experiencing major hardship and requiring record support in Labor’s cost of living crisis.”
“Instead of rewarding and supporting it, Labor has stalled, watered down, or delivered late the key reforms our charities and not for profits need to operate in an increasingly challenging environment characterised by skyrocketing operating costs, volunteering challenges and cybersecurity issues to name a few.”
“And when the Albanese Government does act, it acts contrary to the sector’s best interests, often failing to understand their concerns and making an already bad situation worse.”
ENDS