The Department of the Treasury has dodged a question in the Senate on when the Albanese government will provide a response to the Productivity Commission’s recommendation for reform of Basic Religious Charities (BRCs).
In a written question submitted in November, Greens senator David Shoebridge asked directly for an answer on when the government would respond to the recommendation, which was delivered in a report mid last year.
As reported by the Rationalist Society of Australia last July, the Productivity Commission, in its final report for its inquiry into philanthropy, recommended the removal of BRCs in order to “enhance regulatory consistency and public transparency”. The Productivity Commission said it had carefully considered submissions and evidence provided at public hearings but “could not identify a policy rationale that justifies retaining” BRCs.
Yet, in an answer provided to Senator Shoebridge in the days before Christmas, Treasury simply said the timing of a response was “a matter for Government”.
In December, the RSA wrote to the minister responsible for charities, Dr Andrew Leigh (pictured), to also ask when the government would deliver its response to the Productivity Commission’s recommendations. He has not responded.
Upon the release of the Productivity Commission’s report in July, Dr Leigh said the government would “now consider the recommendations to ensure our next steps are the best possible moves towards our goal of doubling giving.”
However, he swiftly rejected another one of the Productivity Commission’s key recommendations – the removal of Deductible Gift Recipient (DGR) status for school building funds.
While Dr Leigh said a “world‑class education system is essential to tackling inequality”, the Productivity Commission found that DRG status for building funds overwhelmingly benefits the wealthiest private schools.
The report showed that the richest 1 per cent of school building funds received 36 per cent of total donations, with the top 10 per cent getting 83 per cent. As a result, taxpayer subsidisation of private school buildings now approaches $100 million per year.
As the RSA reported in November, Opposition Leader Peter Dutton, speaking at the Christian prayer breakfast in Canberra, praised faith leaders for having worked to successfully “push back” against a proposal to remove tax deductibility for school building funds.
Christian lobbyists are pressuring the federal government to retain special treatment for religious charities. In August, prominent lobbyist Murray Norman told Christian radio that the Albanese government should continue to recognise faith-based charities as “special” and give them “due respect” among all charities in Australia’s charities sector.
Mr Norman revealed that faith-based groups were engaging with the government in an effort to “push back” against the Productivity Commission’s recommendations for the removal of special exemptions provided to BRCs.
In May, a few weeks prior to the release of the Productivity Commission’s final report, a spokesperson for the Australian Christian Lobby (ACL) said that Dr Leigh was scheduled to give a presentation to the ACL and religious charity leaders about proposed charities reforms.
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Si Gladman is Executive Director of the Rationalist Society of Australia. He also hosts ‘The Secular Agenda’ podcast.