In March, Deputy Prime Minister Julia Gillard, Assistant Treasurer Chris Bowen and the Parliamentary Secretary for Social Inclusion and the Voluntary Sector Senator Ursula Stephens announced that the Productivity Commission (PC) will examine the contribution of the not-for-profit sector to Australian society.
The PC has been asked to assess how the not-for-profit sector's contributions to Australian society are currently measured and these measures can be improved.
The Government has also asked the PC to identify ways to improve the efficiency and effectiveness of community organisations, and to consider options for improving the delivery of government-funded services by these organisations.
Dennis Trewin AO, formerly the Australian Statistician and head of the Australian Bureau of Statistics from 2000 to 2007, has been appointed to the PC as an Associate Commissioner for this study. The PC will deliver a final report by the end of 2009.
The terms of reference of the study outline the scope of the review, which will include:
- An assessment of the extent to which the not-for-profit sector's contributions to Australian society are currently measured, the utility of such measurements, and the possible uses of such measurements in helping shape government policy and programs, as well as alternatives to or improvements in these measurements;
- The identification of any unnecessary burdens or impediments to the effective operation of community organisations, inlcuding unnecessary or ineffective regulatory or governance requirements;
- A consideration of options for improving delivery of government-funded services by community organisations, including improved funding, contractual and reporting arrangements;
- An examination of the changing nature of relationships between government, business and community organisastion in recent times, their general impacts, and opportunities to enhance these relationships to optimise outcomes by the sector and its contribution to society;
- An examination of extent to which tax deductibility influences both decisions to donate and the overall pool of philanthropic funds; and
- An examination of the extent to which tax exemptions accessed by the commercial operations of not-for-profit organisations may affect the competitive neutrality of the market.
The study is considered a key step in fufilling the Labor Government's election commitment to maximise the sector's contribution to social inclusion, employment and economic growth.
Senator Stephens said, "The study will help improve the way in which the not-for-profit sector operates and make it easier for organisations working in the sector to be effective."
As part of the review process, the PC will provide an opportunity for public participation through submissions, and information can be found
here.
While the terms of reference specifically refer to organisations in the business sector, presumably including professional associations, there does seem to be a heavy emphasis on the community sector, perhaps understandably given the social inclusion policy agenda. But will this skew the outcome of the study, and will the contributions of professional and business organisations be appropriately represented?