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Calls renew for Australia’s corporate religious institutions to pay ‘fair share’ of tax

March 26, 2024
in News
Calls renew for Australia’s corporate religious institutions to pay ‘fair share’ of tax
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There are renewed calls for religious charities to face “a day of financial reckoning” and “pay their fair share of tax”, as the government prepares to table a report in Parliament on Australian philanthropy. 

The “once-in-a-generation” review, announced just over a year ago as part of the government’s election vow to double philanthropic giving by 2030, and to boost donations to charities, is being undertaken by the Productivity Commission (PC). 

Last month, former Jehovah’s Witness whistleblower Lara Kaput appeared before the commission and recommended the committee cease “financial privileges for corporate religions” to help facilitate “the avoidance of doubt, to alleviate the cost of living crisis, and to be fiscally responsible”.

She told Crikey she was not limiting this to deductible gift recipients, one of the commission’s major reform focuses, adding this was just “the icing on the top of the cake”. Instead, she was targeting all charitable tax benefits, such as fringe benefits tax, stamp duty, payroll tax, land tax and rates concessions.

“Why don’t volunteers want to give their time and money to charities anymore? Why don’t philanthropists donate?” Kaput asked the commission, according to a transcript of proceedings from February 21. “Well, for too many years there has been a presumed benefit for religion and charities. There must be a day of financial reckoning in Australia for religious harm. And surely that day is today.”

Kaput is a survivor of institutional child sexual abuse within the Jehovah’s Witnesses, and co-founded SaySorry to hold the religious organisation to account. She told Crikey she had made the request with the “era of increasing religiosity” in mind, with nearly 40% of Australians now having “no religion”, according to the last Census results. 

“I think that the general public today want religions to pay their fair share of tax,” she said. 

Greens Senator and justice spokesperson David Shoebridge told Crikey: “Why should the amount of tax paid by a cereal company or an aged care manager depend on the religious beliefs of their board? It’s a bizarre anachronism.”

“The Productivity Commission’s recommendation to limit tax breaks is well supported by the community who know that commercial businesses should not get an unfair advantage just because they are associated with a religion.

“The enormous wealth and power of these institutions can’t be allowed to dictate tax policy or create self-interested loopholes.” 

He said that many abuse survivors had struggled to receive financial compensation from wealthy organisations while they claimed extensive tax breaks at the public expense. The special tax status of these institutions should be at risk if they fail to comply with their legal and moral obligations to these people, said Shoebridge. 

“Where institutions repeatedly traumatise survivors, use oppressive legal tactics and fail to comply with redress obligations, there must be a price to pay,” he said. 

Assistant Minister for Charities Andrew Leigh told Crikey that the government, as part of its election promise to double philanthropic giving, had asked the commission “how we could make it easier for Australians to give with confidence and trust to the causes they support”.

“The Productivity Commission has provided interim recommendations,” he said. “We’ll be listening closely to the commentary from charities, donors and volunteers, and we look forward to receiving the final report in the first half of next year.”

A final inquiry report will be handed to the government by May 11, according to the PC. The government’s release of the final report is the final step in the process. The government is required under law to table the report in each house of Parliament within 25 sitting days of receiving it. 

A spokesperson for the Australian Charities and Not-for-profits Commission told Crikey that as the regulator it administers laws and regulations. “Any change to policy impacting charities is a matter for government,” the spokesperson said. 

The review also calls for the removal of “basic religious charities” (BRCs) so that these charities are subject to the same ACNC governance and reporting requirements as others.

​​It recommends that the ACNC’s regulatory and information-sharing role be bolstered by state and territory regulators working together more and that the government set up an Aboriginal and Torres Strait Islander philanthropic foundation.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Crikey – https://www.crikey.com.au/2024/03/26/religious-charities-tax-productivity-commission-lara-kaput/

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