The Productivity Commission has released its research report on the Contribution of the Not-for-Profit Sector.
The sector comprises around 600,000 organisations which make up more than 4 per cent of GDP or around $43 billion according to the report.
The recommendations include:
- Establish a national Registrar to:
• consolidate Commonwealth regulation for incorporation of NFP companies (including Indigenous corporations)
• register and endorse not for profits (NFPs) for tax concessional status
• register national fundraising organisations and/or activities
• provide a single portal for corporate and financial reporting.
- Registrar to endorse Commonwealth tax concession status for NFPs.
Annual community-purpose statement to be required.
- Establish a separate chapter in the Corporations Act 2001 dealing with NFP companies limited by guarantee.
- States and territories to harmonise Incorporated Associations legislation and reduce impediments to changing legal form
- Registrar to establish a register for cross-jurisdictional fundraising organisations and/or
- Australian governments to fast track introduction of Standard Chart of Accounts, expand Standard Business Reporting to NFPs, and encourage agencies to use the information available through the Registrar to undertake organisational ‘health checks’
- An Office for NFP Sector Engagement within a central Commonwealth agency should be established to drive the reform agenda.
The Government will carefully consider the detail of the report before it responds to its recommendations.