Productivity Commission to Investigate Not for Profit Sector

The Rudd Government has asked the Productivity Commission to undertake a commissioned study on the contributions of the Australian Not for Profit sector.

The study's focus is on improving the measurement of the sector's contributions and removing obstacles to maximising its contributions to society.
The Commission has been asked to:
-assess current and alternative measures of the contribution of the Not for Profit sector and how these can be used to better shape government policy and programs so as to optimise the sectors contribution to society
-identify unnecessary impediments to the efficient and effective operation of NFP organisations and measures to enhance their operation
-consider ways in which the delivery and outcomes from government funded services by NFP organisations could be improved
-examine recent changes in the relationships between government, business and community organisations and whether there is scope to enhance these relationships so as to improve outcomes delivered by the NFP sector
-examine the impact of the taxation system on the ability of Not for Profit organisations to raise funds and the extent to which the tax treatment of the sector affects competitive neutrality.

The Commission has been asked to adopt a broad definition of the sector to encompass most types of NFP organisations, including Australian based international aid and development agencies.

It is also to have regard to the findings of the Government's Taxation Review headed by Dr Ken Henry and the Inquiry into the Definition of Charities and Related Organisations (2001).

The Presiding Commissioner of the inquiry is Robert Fitzgerald who chaired the inquiry in the Definition of Charities in 2001.
Dennis Trewin has been appointed to the Productivity Commission as an Associate Commissioner for this study. Trewin was the Australian Statistician and head of the Australian Bureau of Statistics from July 2000 until January 2007. He has more recently been working as a statistical consultant and has recently completed assignments with the UN, OECD and World Bank.

As part of the review process, the Commission will provide an opportunity for public participation. All interested parties are invited to make a submission. To register an interest in the study or to find out more, details are available from the Commission at pc.gov.au under projects, or by calling 02 6240 3239 or via email at nfp@pc.gov.au Submissions from interested parties are due 30 May 2009.

The Commission is to produce and publish a draft report and final report by the end of 2009.