Community sector workers would be allowed to publicly advocate, under a Labor proposal, with the opposition pledging to remove gag clauses imposed on the sector.
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The federal opposition said it would restore the freedom for workers in the sector to advocate, should Labor win the upcoming federal election.
The proposal would also see greater funding for a wider range of not-for-profits.
Opposition spokeswoman for communities Jenny McAllister said the proposal would lead to a stronger and more diverse sector.
"Community sector and not-for-profit organisations that support our communities should be treated as respected partners of government," Senator McAllister said.
"Labor will work with charities to support their work improving Australian communities."
The move has been welcomed by advocacy groups, who said the changes would bolster the sector.
Australian Council of Social Service chief executive Cassandra Goldie said the proposed reforms was a good step towards improved regulation.
"Community organisations have been absolutely critical in helping hundreds of thousands of people to survive and cope during this time," she said.
"It is absolutely the time for government to strengthen its partnership with the community sector to ensure people in need can equitably access essential services and be assisted to overcome hardship, disadvantage and poverty."
Australian Services Union's assistant national secretary Emeline Gaske said workers in the community sector had been gagged and starved of key funds by the government.
"These reforms announced by Labor will ensure community workers have better job security and pay and the support they need to do their important work," she said.
"Advocating to government, privately and publicly, is part and parcel the role of community services organisations, charities and their workers, to ensure the vulnerable are properly supported."
Australian Associated Press
