Fairfax Media can confirm that a bill to abolish the commission will be introduced to federal parliament on Wednesday as part of the government's ''repeal day'' package. It is understood there are plans to then defund the organisation in the coming months.

Before the 2013 election, the Abbott government pledged to get rid of the body and move its regulatory functions back into the Australian Taxation Office to ''reduce red tape''. Fairfax Media has previously reported Cardinal George Pell's office has also lobbied the government to get rid of the charities regulator.

Among other duties, the commission registers charities, helps them meet their obligations, investigates complaints and maintains a public charities register.

Many within the ''third sector'' are adamantly against the commission's axing, arguing it will result in less transparency of not-for-profits, which contribute about $43 billion to Australia's GDP and employ about 900,000 people.

While there have been some criticisms that the commission has not been quick enough to reduce red tape and has been too heavy-handed with regulation, a 2013 survey by Pro Bono Australia found that of 1500 stakeholders surveyed, about 80 per cent supported the commission.

Community Council for Australia chief executive David Crosbie, whose members include World Vision, RSPCA, Lifeline and Hillsong Church, said putting the ATO in charge of charities was like ''putting the fox in charge of the hen house''.

Others experts on the sector say the Coalition's decision to axe the commission, just a year after it began, has more to do with ideology than reducing red tape.

The Productivity Commission and the Henry Tax Review have also recommended a national charities commission.

A spokeswoman for Mr Andrews said there were ''ongoing'' meetings between the government, the commission and ''major'' stakeholders.