Andrew Leigh (Fraser, Australian Labor Party, Shadow Assistant Treasurer) Share this | Hansard source

As the shadow Treasurer has outlined, the Tax Laws Amendment (Gifts) Bill 2015 provides statutory listing for two organisations which will receive deductible gift recipient status. This is necessary for the International Jewish Relief Limited organisation because that organisation operates in both developed and developing countries and, therefore, does not meet the criteria of a charity that operates purely in developing countries. It is also necessary for the National Apology Foundation Ltd because that organisation aims to further both program goals and policy goals and, therefore, does not fall within the outlined categories for tax deductible gift recipient status. Tax deductibility will be a boon to these two important organisations, and I am pleased to say that bill enjoys bipartisan support.

Tax deductibility is not the only factor that drives giving. Over recent years we have seen Australians becoming more disconnected. It is a trend that runs from the 1960s through to be mid-2000s, and then we have also seen it from the mid-2000s since. Data from the Australian Bureau of Statistics finds that the share of Australians with no involvement in social and community groups has risen from 30 per cent in 2006 to 32 per cent in 2010. A report from 2014 by JBWere, titled Australian giving trends—Stuck on the plateau, documents the fact that the share of Australian taxpayers giving to charity has failed to rise in recent years. Indeed, it points out that if you go to the back to the early 1980s around 40 per cent of taxpayers were giving to charity, and now that figure is around 35 per cent.

It is important that we encourage charitable giving. I acknowledge the work of megadonors such as Paul Ramsay, Brian Trudinger and Westpac, and also the important work done as Western Australian governor by Malcolm McCusker in making charitable donation a part of Western Australia's social fabric. We should acknowledge too the work of organisations such as Pro Bono Australia, which has brought giving to the fore. But if we are to boost philanthropy then we need a full-court press. We need all organisations encouraging social capital, encouraging engagement with organisations and encouraging charitable donations.

A recent Philanthropy Australia meeting here in parliament, the inaugural Philanthropy Meets Parliament Summit, focused on a number of ways in which that can be done. Many of the attendees there recognised the value of the Australian Charities and Not-for-profits Commission. The commission opened its doors in December 2012, ably headed by Susan Pascoe, and I am pleased to say that the government's bill to scrap the charities commission continues to languish on the House Notice Paper. States and territories such as South Australia and the ACT are now working with the charities commission to make it more effective, and I hope that is a path that other states and territories will go down also to make use of the red-tape reduction potential of the charities commission.

But it would be terrific too if the charities commission were able to more strongly advocate for a culture of charitable giving to organisations such as those we are debating in this bill today—the International Jewish Relief Limited and the National Apology Foundation Ltd—but also to the tens of thousands of worthy charities across Australia. A charities commission that was strongly backed by the government is one which could play a more active role in building social capital in Australia.

I urge the government to formally put in the bin their proposal for scrapping the charities commission, an idea which goes back to the former minister, Kevin Andrews, the member for Menzies. Now that the member Menzies has stepped out of the social services portfolio, the idea of scrapping the charities commission ought to be similarly scrapped. That would give the charities commission a greater sense of confidence and it would ensure that there was less staff turnover in the charities commission, which continues to suffer turnover somewhere in the order of 25 per cent per year as a result of the uncertainty that hangs over its head.

The charities commission enjoys very strong support from the sector. Surveys by Pro Bono Australia put support at around four in five charities. An open letter to the Prime Minister supporting the charities commission reads like a who's who of the sector. Many charities have formally called for the charities commission to be maintained. Indeed, it should not just be maintained; it should be strengthened and it should be allowed to play a vital role in rebuilding social capital in an Australia that is increasingly becoming more disconnected.

The religious traditions of giving are those which we remember at this time of year: the Christian tradition of tithing, the Jewish tradition of tzedakah, the Muslim notion of zakat. Many Australians will be, at this time of the year, thinking of those less fortunate than themselves. As patron of this year's Kippax Uniting Church gift drive, I am very proud of the work that the Kippax Uniting Church community do to provide food hampers and gifts to the vulnerable in the Canberra community. These are efforts that are being replicated in different contexts by different organisations across Australia.

Australia's charities do extraordinary work but they need a charities commission backed by the government and empowered to advocate charitable giving and make us a more connected community. I commend the bill to the House.

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