The Minister for Finance Senator Penny Wong Mon 4.3.2013, announced that the Federal Government would introduce a Not-for-Profit Sector Freedom to Advocate Bill during the next sitting of Parliament. The Bill would ban gag clauses from all Commonwealth contracts. The Minister said it will safeguard the right of the not-for-profit sector to advocate in the interests of the community, whether that advocacy agrees or disagrees with the Government.
Senator Wong said the Bill would be “predicated on the principle that advocacy from the not-for-profit sector is important and should not be restricted” and would declare that NFP advocacy could not be impinged upon by the Commonwealth. Senator Wong said the Government was legislating to prevent any future government from installing gag clauses. She said that on Mon 4.3.2013, the Prime Minister will write to all State Premiers and Territory Chief Ministers, calling on them to match the Commonwealth’s commitment and to introduce similar legislative measures.
At the same time, the Minister announced that the Government had on Mon 4.3.2013 formally launched the revised Commonwealth Grant Guidelines, aimed at reducing red tape. The revised Guidelines require that agency staff must not seek information from grant applicants and recipients that is already collected elsewhere in government and available to agency staff. It also means that agencies must have regard to information already collected by regulators. In particular, agency staff must not request information provided to the Australian Charities and Not-for-profits Commission (ACNC) by organisations regulated by that body.
Source: Minister for Finance speech to UnitingCare Australia NFP Forum, Brisbane, 4 March 2013
[LTN 42, 1/3/13]
Not-for-profit Sector ‘Freedom to Advocate’ Bill introduced
The Not-for-profit Sector Freedom to Advocate Bill 2013 was introduced into the Senate on Wed 13.3.2013. It proposes provisions that would prohibit and invalidate clauses in Commonwealth agreements with the not-for-profit (NFP) sector that restrict or prevent NFP entities from advocating on Commonwealth law, policy or actions (“gag clauses”). The Government said the Bill safeguards the right of NFP groups to advocate freely in the interests of the community. If enacted, the Bill would apply to all Commonwealth agreements with the NFP sector, regardless of whether they were entered into prior to the commencement of the legislation. Note the Bill also proposes “reasonable compensation” should a party suffer loss because of a “gag clause” in a pre-existing agreement that is invalidated by the legislation.
[LTN 50, 14/3/13]