Controversial new commissioner Gary Johns is pushing for new powers that not-for-profits say are ‘absurd’

This article is more than 2 years old

This article is more than 2 years old

The Australian Charities and Not-for-profits Commission has pushed for new powers to regulate charities’ “effective use of resources” under its controversial new commissioner, Gary Johns.

The charities sector is up in arms over the proposal, seen as an attempt to control how charities spend their money from a commissioner who has argued that it is not appropriate for charities to fund advocacy.

In its submission to a review of charities law, the ACNC called for two new objects: to promote “the effective use of the resources of not-for-profit entities”; and to “enhance the accountability of not-for-profit entities to donors, beneficiaries and the public”.

The ACNC’s objects now are to maintain public trust in and the independence of the sector and to promote the reduction of “unnecessary regulatory obligations” for charities.

The commission argued the expanded scope was “appropriate” because “the maintenance and promotion of the effectiveness and sustainability of the not-for-profit sector” was already a factor the commissioner must consider when making decisions.

It said the new objects should come with additional powers, functions and resources.

Facebook Twitter Pinterest Gary Johns, the head of the Australian Charities and Not-for-profits Commission. Photograph: Mick Tsikas/EPA

The Community Council for Australia’s chief executive, David Crosbie, said the proposed objectives were “incredibly disappointing” and amounted to a “bizarre overreach” from the regulator.

He said there was “no explanation” of how the ACNC would measure an “effective use of resources”.

“It’s not the role of a government regulator which may not agree with a particular charity’s approach – it’s absurd that should tell them how to use their resources,” he said.



“As long as charities are meeting their statutory requirements and fulfilling their charitable purpose it is not up to the regulator.”

He added: “The use of resources is best left up to charities, the communities they serve and their own governance structures.”

Johns was a Labor minister under the Keating government and a former head of NGOWatch at the Institute for Public Affairs. After his appointment in December, Johns said when people gave to charities they expected that “most of [the donation] will be used for the charitable purpose … [and that] the work that is undertaken on behalf of a donor works”. He promised to bring those matters “to the fore” in his work at the ACNC.

In 2014 Johns argued that the government should remove advocacy as a charitable purpose to “deny charity status to the enemies of progress”, citing the fact the Environmental Defenders Office Queensland advocates against coal mining.

In his 2014 book The Charity Ball, he said advocacy was of “doubtful public benefit”. He criticised larger charities “whose service delivery is heavily weighted towards advocacy, research, campaigning and lobbying”, including World Vision Australia, the Australian Conservation Foundation and Amnesty International Australia.

Crosbie said Johns’ public statements demonstrated that he believed “charities should not be advocating for extra funding from government”.

He suggested that advocacy for more housing for homeless people and spending on mental health services were examples of activities that could come under attack.

Crosbie, who served on the ACNC’s advisory board for more than three years, said the original objects had been developed after thorough consultation and “not once” had stakeholders suggested adding the new objectives in the ACNC submission.

Labor’s charities spokesman, Andrew Leigh, accused the government of an “ongoing war on charities” and said it was “worrying that the new commissioner’s first actions have already put the sector offside”.

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“The Turnbull government appointed a staunch critic of the charitable sector to head the [ACNC], who now seems intent on acting like a hanging judge rather than a guiding hand,” he said.

“Charities already face stringent rules and regulations to weed out wrongdoers. The sector deserves a champion to guide them through the increasing obstacles and red tape being put in place by the Coalition.”

The Turnbull government has proposed a ban on foreign donations that charities have warned will impose an administrative burden or chill their ability to undertake advocacy.

A commission spokeswomansaid the submission was designed to “facilitate and promote discussion about the future of the ACNC” and encouraged other parties to tell the Treasury review their views.

“This debate is healthy for the sector, as it ensures that all views are captured and considered by the review panel,” she said.