Charities regulator appeals against cut

Only firms afraid of transparency stand to benefit from the scrapping of the nation's charities watchdog.

That's the view of the man who chairs the advisory board of the Australian Charities and Not-for-Profits Commission, which is set for the chop under federal government plans.

Supporters of the regulator argued at a Senate inquiry in Canberra on Friday it was doing its job in cutting red-tape and holding charities accountable.

However, critics from the financial services sector and medical research bodies said it created an unnecessary regulatory burden.

Robert Fitzgerald, the regulator's advisory board chair, said some in the sector were equating transparency with red tape.

"The truth of the matter is if you don't like transparency, you will oppose the ACNC," Mr Fitzgerald said.

Mr Fitzgerald said it was difficult to understand how a government which set up two royal commissions in the name of transparency was on the other hand trying to shut down a body that shines a spotlight on the charitable sector.

The regulator needed more time to achieve its aims, he said.