Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Hansard source

I move:

That the Senate take note of the answers given by ministers to questions without notice asked today.

Just a few months ago we heard how Labor was dragging its feet on delivering on some fundamental election commitments when it came to the charities and not-for-profit sector. It was dragging its feet on the Productivity Commission inquiry that was aimed at doubling giving by 2030. It was dragging its feet on its Building Capacity, Building Community policy. I'm pleased to say, under a bit of pressure from this chamber, we've now seen both the announcement of the Productivity Commission inquiry and some further detail in regard to the Building Capacity, Building Community initiatives. Why is it that, having dragged its feet on providing some certainty about what the future for the charities and not-for-profit sector might look like under this governments, it is now seeking to pull the rug from underneath those charities that earn an income through franked dividends? It's a very, very important question. It's not a suggestion, it's not a guess on my part or the coalition senators' part on what's happening here. Labor is either consciously trying to rip money from the charities sector through its franking credits plan or it's designed a policy which will inadvertently hurt charities and rip not just $1 billion but possibly $2 billion worth of franking credit revenue from charities in Australia. Is it a conscious decision or is it the consequence of poor policy design?

Senator Polley, I can see you here, looking enthusiastic at my contribution. I only have to direct you to page 52 of the Tax Expenditures and Insights Statement document. It says, at page 52:

In 2019-20, around $67 billion of franking credits were distributed by Australian companies.