The deductible gift recipient (DGR) system in Australia allows certain charitable organisations to offer tax deductible donations to their donors. This tax deductablity of donations has been (rightly) used by various faiths in Australia. Hindus are in the process of establishing their first School and removing this tax deductibility status will stop Hindus from availing of the benefit that have been availed by other faiths in the past.
We encourage all Hindus in Australia to oppose this proposal.
YOUR URGENT ACTION IS REQUESTED
The commission is inviting feedback on their draft recommended reforms. Your voice is essential.
Please make a submission, write a brief comment – or both:
1. Share a brief comment
https://www.pc.gov.au/inquiries/current/philanthropy/comment
2. Write a submission:
https://www.pc.gov.au/inquiries/current/philanthropy/make-
submission#lodge
Submissions and comments close on 9 Feb, 2024
– so now is the time for action, before this draft report becomes final.
BACKGROUND
Recently, the Australian Government Productivity Commission has undertaken a
review of the DGR system, with a draft report from the commission recommending
that “charities that have DGR status for school building funds or to provide religious
education in government schools” have their DGR status withdrawn.
This would mean that up to 5,000 charities across Australia will no longer be able
to offer their donors tax deductible giving.
THE COMMISSION APPEARS TO HAVE AN ANTI-RELIGIOUS IDEOLOGY
Within their report, the government recognises the invaluable contribution that both
the giving of financial donations, and people volunteering their time, make to the
fabric of Australian society – and yet, they have not recognised that an enormous
proportion of this is undertaken from members of faith communities.
The Australian government has a goal of doubling giving by 2030. Through this
report, and its recommended reforms, they have missed the key point that the
faith communities contribute in an enormous way through both financial giving and
volunteering of their time, in ways that contribute to social cohesion and benefitting
society as a whole.
PEOPLE OF FAITH BRING LARGE SCALE, COMMUNITY-WIDE BENEFIT
Members of faith communities are more likely to have helped the needy, and religious
practice is linked to greater generosity in charitable giving and volunteering1
. Many
people in faith communities volunteer their time and skills to benefit others – bringing
large scale community-wide benefit.
The report states “Religious organisations play an important role in many people’s
lives and communities across Australia. However, the Commission does not see a
case for additional government support for the practice of religion through the DGR
[deductible gift recipient] system, based on the first principle [i.e, expectation of
community-wide benefits] above.” [p.18]. The Productivity Commission evidently
therefore believes the opposite – that religious charities produce little community-
wide benefit – which flies in the face of research2
.
SCHOOL BUILDING FUNDS IN DANGER OF LOSING DGR STATUS
The removal of DGR status for building funds for faith-based schools will have a
profound impact on low-fee faith-based schools whose students cost the government
far less to educate than if those same students were in a local public school. There
is a growing demand for faith-based schools – which is the fastest growing sector of
education. Governments provide all the capital funding (e.g., buildings and facilities)
for government schools, but only a fraction of the capital needs of faith-based
schools. Removal of DGR status will have a massive negative impact on this sector of
education.
REPRESENTING THE INTERESTS OF FAITH COMMUNITIES IN NSW, AUSTRALIA
RELIGIOUS EDUCATION IN GOVERNMENT SCHOOLS UNDER THREAT
Special Religious Education (SRE) in Government Schools provides well-researched
benefits for social cohesion and key psychological benefits for young people. It
promotes thick multiculturalism, social acceptance, and reduces the risk of student
radicalisation because the education is based within the school system, instead of an
unregulated environment (for example online). SRE teachers represent the largest
year-round volunteer labour force in Australia – and with the government wanting
to focus on increasing giving and volunteering, we find it extraordinary that the
Productivity Commission would seek to penalise this and other religious initiatives, and
place severe limitations upon the resources that enable this instruction.
WHAT CAN YOU DO?
We believe the recommendations from this Commission will have far-reaching
negative effects on the faith communities of Australia, their faith-based schools and
also Special Religious Education within government schools. We are asking you to take
some simple action before 9 Feb 2024 to let your voice be heard on this important
issue. Please take the time to write a brief comment using the weblink below, or write
a longer submission – or both. You are welcome to use any wording from this letter to
help you. You are also encouraged to submit both a brief comment and a submission.
Numbers matter – please use your voice and circle of influence, to ensure that
thousands of individual comments or submissions are made before 9 Feb, 2024.
