ANDRE LESLIE:
Grants and distributions by charities increased by 5 per cent to nearly $10 billion in 2021. But that rate of growth will be insufficient to hit the Albanese Government's goal of doubling philanthropy by 2030. So, what hurdles need to be cleared to see more private sector dollars flow into our charities and not‑for‑profit organisations? Ahead of a town hall gathering of interested organisations in Devonport today, Andrew Leigh, Assistant Minister for Employment, Competition, Charities and Treasury, joins us this morning on breakfast. Good morning, Andrew Leigh.
ANDREW LEIGH:
Good morning, Andre. Great to be with you.
LESLIE:
Thanks for getting through to us. Let's start right at the top here. Why has the government set a target of doubling philanthropy by 2030? Why is that so important?
LEIGH:
Well, Andre, over the last generation, we've seen a lot of worrying trends. Australians are less likely to volunteer, to donate, to participate in organised sports, to be part of a religious community or a trade union. We even have fewer friends and no fewer neighbours. So, in that environment of a civic crisis, it's really important that we look at ways of rebuilding the sense of civic community. Stronger societies not only have better economies and healthier people, but are also happier places to live. And so, as part of trying to build that civic renaissance, we're keen to increase the volume of philanthropy flying to Australia's great charities.
LESLIE:
What do you think are some of the barriers for philanthropic donors at the moment in Australia?
LEIGH:
The main reason people give to charity is because the cause has been drawn to their attention, either because someone knocked on their door or a friend mentioned a good cause. People who participate in a CEO Sleep Out or give to the Red Shield appeal, or simply go online, decide to support the Guide Dogs or the Salvos. And so those sorts of important causes come from a desire to help out in your local community and to give back. There's something that they call the “helper’s high”, which has been repeated in a range of experiments showing that people who give money to charity end up feeling better about themselves. Kids in Philanthropy is propagating this through schools, but I've also been out there talking to high net worth individuals about getting more people in Australia signed up to that giving pledge for the that many overseas billionaires have signed.
LESLIE:
What can philanthropists do that the government cannot? Are they able to operate in different spaces?
LEIGH:
Yeah. Often it's areas where you're trying out new programs. I sometimes say to philanthropists, you can think of yourself as the venture capital arm of government. Sometimes it's funding programs which are in the arts space or in local communities, niches that government doesn't necessarily reach. We see a lot of innovation in the community sector. I was in Perth the other day. A woman was running an organisation which provides sporting access to Indigenous people in remote communities with disability. So, there's all kinds of extraordinary charities across the country. And at the Paranaple Convention Centre at 10 o'clock today, I'm looking forward to hearing from a range of Devonport charities about the work that they're doing.
LESLIE:
As a nation, we give at far lower rates than other countries in the OECD. Why do you think that is?
LEIGH:
I don't think it's because we're mean spirited. I think it's because often we forget to donate to other causes. And that means that by raising the profile of philanthropy, we are able to do a lot. In the area of volunteering, we're just setting about running a national volunteering campaign. And others have argued that a slip, slop, slap style campaign for philanthropy might work too. So, one of the things that I'm often doing is just talking about the benefits of giving back. In my own case, I've raised money for Rob de Castella’s Indigenous Marathon Foundation. I did the CEO Sleep Out recently and find that process enormously rewarding. It brings me in contact with a range of people I wouldn't otherwise get to know. And so while I know that many households are feeling the cost‑of‑living pressure right now, I would say if you're fortunate enough to have a couple of spare dollars, do consider giving to an organisation that really needs it.
LESLIE:
Just before you go, on a separate note, you're also the Assistant Minister for Competition and recently asked Treasury and the ACCC to look into the prevalence of non‑compete clauses in workplace contracts. What can you tell me about that?
LEIGH:
Yeah, look, I'm glad you asked about that. Non‑compete clauses are clauses which prevent people moving to a better job, and in an environment in which people have been struggling to see decent pay rises a little bit troubled by the fact that one in five Australian workers has a clause in their agreement saying that they can't move to a better job. This includes not only high level executives, but also yoga instructors, hairdressers, early childhood workers. I think non‑compete clauses have proliferated like topsy across the Australian economy and it's worth having a look as to whether they're serving the purposes they were intended to do or just dampening down wage growth, job mobility and productivity.
LESLIE:
Yeah, it sounds like something to keep an eye on. All right, well, look, welcome to the state today. Hope you have a good time in Devonport this morning. And hear some interesting points.
LEIGH:
I did a beautiful run out to Mersey Bluff Lighthouse this morning. It's a fantastic part of the world.
LESLIE:
You're kicking goals with the locals already. Okay. Well, thanks, Assistant Minister. Thanks for joining us on the show today.
LEIGH:
Thank you, Andre.
LESLIE:
That's Andrew Leigh there. He's the Assistant Minister for Employment, Competition, Charities and Treasury. And he's in Devonport today to try to talk about how we can boost philanthropy in Australia.