The changes include proposing that an entity should not be be eligible for charitable status under the Australian Charities and Not-for-profits Commission Regulation 2013 if found responsible for act that may be dealt with as a summary offence relating to property, personal property of causing personal injury or harm to an an individual, or if the entity fails to take reasonable steps to ensure its resources are not used to promote acts that may be dealt with as an indictable offence.

Mr Duniam said this legislation was needed to prevent "activists masquerading as charities" to continue benefiting from tax-deductible donations.

"There are many, many charities that deserve these benefits," Mr Duniam said.

"But others need to be held to account."

Using environmental not-for-profit the Bob Brown Foundation as an example, Mr Duniam said a line needed to be drawn.

"When you see an organisation that receives these charitable benefits going into workplaces, endangering the safety of themselves and workers, and trespassing, most hardworking, honest Australians would look at this and wonder how this organisation can be rewarded the same way as a food bank, or homeless shelter," he said.

"We have no opposition to peaceful protesting - people should be able to advocate for what the laws of the society they live in should be.

"Charity status should be for organisations that really need it."

Shawn Britton is the general manager of Britton Timber, and said his work is regularly interrupted by protestors trespassing.

"In the last few months, the number of protests has significantly ramped up," Mr Britton said.

"We're at a situation now where we have to employ 24/7 security so we know our gate is going to be clear and our business can operate," he said.

"And we're not the only ones who've done that.

"There's clearly something wrong with the current laws if a charity can disrupt genuine workplaces and prevent them from operating."

BBF CEO Steven Chaffer said the proposed changes appeared to be "a solution in search of a problem."

"Of course, common sense stands that no one wants to see a charity registered that is supporting violence," Mr Chaffer said. "And of course the government should go after charities that aren't behaving as they should, whether that's through improper use of finances, corruption or malfeasance.

"With the inclusion of trespass, this isn't about targeting irresponsible charities, this is about the government trying to silence their critics," he said.

"This is just having a kick at the groups they don't like."

Mr Chaffer said the Bob Brown Foundation openly acknowledged their protests often included trespass, but said regulation changes wouldn't stop that.

"We're always going to protest peacefully, that's not going to stop.

"You don't change society by sitting quietly on the pavement."

Public submissions into these proposed legislation changes close on March 14.

Submissions can be made at https://treasury.gov.au.