7 Aug 2023

New charities law little more than 'tweaks' say critics

From Nine To Noon, 9:15 am on 7 August 2023

A promised shakeup to the law governing charities is being criticised as a missed opportunity to make real changes and has instead delivered additional layers of complication.

The Charities Amendment Act was passed in late June, with most of its provisions coming into force from early October. 

The history to the changes sought by the sector is long and complicated, and it was taken up by Labour in 2017 when it promised to review how the 2005 Charities Act was working.

The government says the just-passed Charities Amendment Act will "modernise" the sector, cut red tape - particularly for smaller charities - and help them get on with their mahi.

But those working with charities say that's not what it delivers - and instead of seizing the chance to boost charities' independence,  it's helping to maintain a status quo where they're treated as little more than a delivery vehicle for government social services.

Susie speaks to Andrew Barnes founder of trustee company Perpetual Guardian, which operates a Foundation and also owns the Givealittle crowdfunding site.

She also speaks to Sue Barker,  a lawyer who specialises in charities and public tax law and who has been following the progression of this legislation extremely closely.

The $20 billion a year charity sector employs more than 105,000 people and has about the same number of volunteers.

The $20 billion a year charity sector employs more than 105,000 people and has about the same number of volunteers. Photo: 123RF