A bill amending the Tasmanian Community Fund's governance has been introduced to the state's parliament after the Fund was criticised for providing more than half a million dollars to a group in support of last year's Indigenous Voice to parliament referendum.
Last year the TCF drew condemnation after providing pro-Voice charity Australians for Indigenous Constitutional Recognition with $557,000.
Disapproval of the public money being used to finance one side of the Voice debate followed, with the Tasmanian auditor-general's office finding the money was provided without proper process.
In response, the Tasmanian government introduced a bill proposing increased controls over the TCF board's decisions this week.
Tasmanian Minister for Community Services, Roger Jaensch, said the Tasmanian Community Fund Amendment Bill would ensure the taxpayer-funded TCF was more accountable.
"Under the new Bill, the board must not directly, or indirectly, make grants for political purposes to ensure the TCF remains impartial," Mr Jaensch said.
"This amendment will provide greater public confidence in the Tasmanian Community Fund and an understanding that the TCF Board's duties will remain apolitical and consistent."
The Tasmanian Audit Office found the TCF board's processes and considerations in its decision to award the $557,800 grant as "inadequate".
"Assessment of the AICR grant was not conducted in accordance with an established and documented grants management framework," the audit report read.
Tasmanian Auditor-General, Martin Thompson, criticised the quality of the TCF's record-keeping, saying the fund failed to document the rationale behind its decision.
"I also found that the TCF had not documented how the grant was aligned with the TCF Act and their strategic plan," Mr Thompson said following the release of his report in August.
The majority of the Audit Office's findings were rejected by TCF board member, Alex McKenzie.
"Our process accords with very strong standards of governance," he said in August.
"It's a rigorous grant-making process, it isn't the type of process the Auditor-General expected to see, but that doesn't mean it isn't rigorous."
Minister Jaensch the bill would require the TCF to adopt "best-practice grant management" processes.
"We are proposing targeted amendments that will provide enhanced transparency and community confidence in the governance, decision-making structures, and processes of the Tasmanian Community Fund," he said.
Nearly 59.2 per cent of Tasmanians voted No in the October 2023 referendum.
