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Abstract

After two decades of debate about the regulation of the nonprofit sector, Australia established a national charity regulator in December 2012. The creation of the Australian Charities and Not-for-profits Commission (“ACNC”) had as one of its objectives to reduce red tape, and to increase clarity by enacting a statutory definition of charity. Less than two years later, a new government proposed to abolish the ACNC, also in the name of reducing red tape. There appears to be a paradox—or at least diametrically opposed views about red tape reduction and how it can be achieved. With the government nearly two-thirds through its current term, it is no closer to articulating the detail of an alternative to the ACNC that will be a reduction in red tape. This paper examines the paradoxical red tape views, the actual performance of ACNC red tape reduction and the proposed options for red tape and ACNC reform.

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