Productivity Commission review into the NFP sector
On 11 February 2025 the Productivity Commission released its final research report into the ‘Contribution of the Not-for-Profit Sector'.
This research project was a large and important one that took the Commission almost a year to complete. PilchConnect made a detailed submission primarily on the legal and regulatory reform aspects raised in the Issues Paper that was released in April 2009. We also made a follow up submission in response to the Draft Report released by the Commission in September 2009.
Links to both these PilchConnect submissions, our press releases and all the related Productivity Commission documents are under ‘2009 - 2010 Productivity Commission study into the contribution of NFPs' on our 
Submissions page.
Summary of findings
We have put together a table summarising the Commission's key legal and tax reform recommendations, with PilchConnect's comments on them. This table is available on our Submissions page.
By way of an overview, the Commission makes a number of recommendations for improved regulation for the NFP sector, the major ones are as follows:
- the establishment of a national ‘Registrar for Community and Charitable Purpose Organisations' to regulate national not-for-profit entities;
- development of nationally harmonised fundraising laws and a national fundraising register;
- adoption of a statutory definition of ‘charitable purposes';
- provision of a 'one stop shop' for tax endorsement of not-for-profits;
- implementation of a single reporting portal for not-for-profits with the view to 'report once, use often'; and
- establishment of an ‘Office for Not-For-Profit Sector Engagement' to drive the Commission's recommendations.
Overall, we believe this represents a comprehensive road map for reform which, if promptly and properly implemented, will vastly improve the regulatory underpinning of the not-for-profit sector. As a package, these reforms would help reduce red tape and complexity for all not-for-profit organisations - large and small, national and locally based groups. However, for full implementation they require the co-operation of all levels of government, in particular, State and Federal. Given other findings by the Commission about the size and importance of the sector to Australia, we urge governments to cooperate in this way and for the implementation work to begin immediately.
The Commission's Report also covers a large range of other issues for the sector such as a measurement framework, direct government funding, relationships with business, competitive neutrality, workforce issues and delivery of government funded services. For a link to a summary, with analysis, on these other parts of the Report prepared by ACOSS (Australian Council of Social Services) see our Submissions page.
Background - terms of reference and reports
The Productivity Commission received its terms of reference on 17 March 2009. It was asked by The Deputy Prime Minister, the Hon Julia Gillard MP, the Assistant Treasurer, the Hon Chris Bowen MP, and the Parliamentary Secretary for Social Inclusion and the Voluntary Sector, Senator the Hon Ursula Stephens to undertake a commissioned study on the contribution of the not-for-profit sector.
The final report was delivered to the State and Federal governments in January 2010 and was released publicly on 11 February 2010. There has been no formal response from Federal or State governments yet.
Under the terms of reference the Productivity Commission's study was to focus on:
- improving the measurement of the sector's contributions; and
- removing obstacles to maximising its contributions to society.
In April 2009, the Commission published an Issues Paper and called for submissions. It received 179 submissions from a large range of organisations and also from various State governments. These submissions can be viewed at the Productivity Commission website.
On 14 October 2009, the Productivity Commission released its draft research report into the contribution of the NFP sector. The Commission made 32 draft recommendations and asked for feedback on the draft report by 24 November 2009, receiving a further 139 public submissions (these submissions can be viewed from the Productivity Commission website). The supplementary submission from PilchConnect is also available on our Submissions page.
The final report is available in PDF, as individual chapters and as a single PDF file from the Commission website and hard copy (excluding Appendices) can be ordered for $20.