The Abbott government should review its decision to close the national charities regulator after freezing its controversial plans to water down Labor's financial advice laws, the federal opposition says.
Shadow assistant treasurer Andrew Leigh says the Abbott government needed to reconsider its decision to close the Australian Charities and Not-for-Profits Commission (ACNC) following the departure of Arthur Sinodinos.
He said the ACNC reported to Senator Sinodinos, who stepped aside to face an Independent Commission Against Corruption inquiry in NSW, and the government ought to revisit the policy.
''With the government having pressed the pause button on its anti-consumer changes to financial advice, it should now abandon its attack on charities,'' Mr Leigh said.
The heads of Australia's biggest charities - including Father Chris Riley, Tim Costello and Dr Caroline Lambert - wrote to Prime Minister Tony Abbott a week ago pleading with him to not shut down the ACNC, which was established in 2012 following a Productivity Commission review.
But Social Services Minister Kevin Andrews says the regulator has created too much red tape and is opposed by many in the sector.
Finance Minister Mathias Cormann on Monday said the Abbott government would ''pause'' for now the watering-down of Labor's financial advice laws, a policy being driven by Senator Sinodinos.
But Senator Cormann said he has done so only because the legislation had been referred to the Senate economics committee.
The chief executive of the Community Council for Australia, David Crosbie, said it would be a good thing if the decision to close the ACNC was put on ice.