Canberra fails to respond to sector reform blueprint

Posted on 02 Apr 2025

By Greg Thom, journalist, Institute of Community Directors Australia

The Albanese government has missed a deadline for responding to a wide-ranging blueprint on the future of the not-for-profit sector that it itself commissioned.

Despite being handed the Not-for-Profit Sector Development Blueprint last November, the government has ignored the group's request to respond to the report’s findings by March 31.

Community Council for Australia CEO David Crosbie said he was disappointed but not surprised by the government’s failure to address the issues raised in the report by the deadline.

“The lessons from the Blueprint experience reflect the history of reform across the charities and community sector over a period of more than ten years,” he said.

“Knowing what to do – and perhaps more importantly what not to do – is very different from implementing change.”

Crosbie said the sector was awash with recommendations that would improve its productivity and effectiveness and deliver better outcomes for Australian communities.

“What it lacks is real investment and political will. The Blueprint has not and probably could not deliver either of these two critical change ingredients.”

The comprehensive 48-page page report made 18 recommendations under three broad pillars it said were designed to secure the future of the sector:

an operational and regulatory environment to enable the not-for-profit sector to thrive

a people-led and purpose-driven not-for-profit sector

an adaptive and dynamic forward-focused not-for-profit sector.

Specific recommendations ranged from broadening and simplifying the deductible gift recipient (DGR) system to more support for NFP advocacy and better measurement of sector effectiveness and outcomes.

BERG members including ACOSS CEO Cassandra Goldie, Volunteering Australia CEO Mark Pearce, Rob Sturrock (ACOSS), Anglicare executive director Kasy Chambers and St Vincent de Paul Society CEO Toby O’Connor.

“The lessons from the Blueprint experience reflect the history of reform across the charities and community sector over a period of more than ten years. Knowing what to do – and perhaps more importantly what not to do – is very different from implementing change.”

Community Council for Australia CEO David Crosbie.

The report was compiled by the Blueprint Expert Reference Group (BERG), established by the federal government to help “guide government reform and sector-led initiatives to better support and connect with communities.”

BERG members consisted of some of the most senior leaders in the charity and not-for-profit sector, including Australian Council of Social Services (ACOSS) CEO Cassandra Goldie, Anglicare CEO Kasy Chambers and Volunteering Australia CEO Mark Pearce.

Professor Jo Barraket, director of the Melbourne Social Equity Institute at the University of Melbourne, and Professor David Gilchrist, director of the Centre for Public Value at the University of Western Australia, were expert advisors to the BERG.

Speaking during an ACOSS webinar last December to discuss the report’s release, Barraket acknowledged the years of broken promises and inaction linked to previous efforts at reform.

While highlighting the two years of hard work and extensive consultation behind the blueprint, Barraket conceded that some in the sector could be forgiven for thinking they had seen it all before.

“I can really respect the frustration that people feel about 30 years of unrealised reform agendas and what it feels like being asked the same questions over and over again,” she said.

At the report’s release in late November, BERG members called on the federal government to issue a detailed, written response to the Blueprint and each of its initiatives by 31 March 2025, including a proposed timeframe for implementation and funding for ongoing activities.

Community Council for Australia CEO David Crosbie.

The BERG process was kick-started with the release of an issues paper in November 2023 and included consultative roundtables involving 240 people and multiple departmental and government briefings.

The inquiry received 163 submissions, many of which were summarised in a synthesis report released in September, which articulated the most pressing issues.

ACOSS community services program director Rob Sturrock called on all major parties to commit to full implementation of the Blueprint, starting in the next parliamentary term.

“The Blueprint offers a detailed, non-partisan and independent reform roadmap to ensure our sector can thrive and better support Australia’s people, places and civil society,” she said.

“We stand ready and willing to work with the next government, and the parliament more widely, to actually deliver these crucial reforms.”

Charities Minister Andrew Leigh did not directly address why the government had missed the deadline to respond to the report but acknowledged the hard work of those involved.

“We acknowledge the meaningful contribution of the Blueprint Expert Reference Group to strengthening Australia’s charity sector," said Leigh.

“The Blueprint sets out a range of reforms to build capacity in the sector over the coming years across a range of relationships with government.

“The government is considering the best next steps and will continue to partner with the sector on meaningful reform as we have done since coming to government.”

The failure to respond to the BERG report comes as the sector is still waiting on a detailed response to recommendations made by the Productivity Commission inquiry into philanthropy.

The 468-page Future Foundations for Giving report was released by the government in July 2024, two months after it was delivered to Canberra.

The government said it would consider the report's 19 recommendations but immediately rejected the inquiry’s contentious recommended changes to tax settings for donations to school building funds.

In December Charities Minister Andrew Leigh announced the government would accept the inquiry’s recommendation to scrap the $2 minimum for tax deductible donations.