Have your say on ACNC secrecy reform

Posted on 28 Sep 2023

By Greg Thom, journalist, Institute of Community Directors Australia

Proposed reforms to allow the charity regulator to reveal more about its investigations are open for consultation.

The proposed changes would amend existing laws that prevent the Australian Charities and Not-for-profit Commission (ACNC) from commenting on its investigations.

Charities Minister Andrew Leigh said public consultation on the draft amendments to the Australian Charities and Not-for-profits Commission Act 2012 would be open until October 16.

The amendments are designed to lift the veil of secrecy from the ACNC by allowing the charities regulator to disclose investigations into alleged misconduct by a charity, subject to a public harm test.

Mr Leigh said the safeguard would balance transparency, reputational risks to charities and handling of personal and confidential information.

“These amendments seek to improve public confidence in the charity sector and put the charities commission on par with its counterparts in other countries and with similar agencies in Australia.”

Charities Minister Andrew Leigh.

Previous consultation with the charity sector in 2021 suggested there was support for greater disclosure by the ACNC. The sector believed there would be educational benefits and increase in public trust and confidence in charities.

In the 2023-24 Budget, the government agreed to reforms to ACNC secrecy provisions to allow the Commissioner to disclose:

de-identified reasons for decisions to accept or refuse applications for registration of charities, where these are of educational benefit to the charity sector.
information about the existence of an ongoing investigation into a charity where disclosure is necessary to prevent public harm.
finalised compliance investigations that did not result in formal compliance action, where disclosure is in the public interest.

Mr Leigh said the present secrecy provisions limited the ability of the public and charities to learn from the charities commission’s regulatory activities.

“These amendments seek to improve public confidence in the charity sector and put the charities commission on par with its counterparts in other countries and with similar agencies in Australia.”

More information

Minister steps up moves to remove-secrecy muzzle from ACNC

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