Wilson Tuckey (O'Connor, Liberal Party) Share this | Hansard source

Yes, one might wonder just how much of the other money is actually available. Anyway, from a taxing perspective one might wonder about this convoluted process. I think you might find that on some smaller tax returns they are listed as deductible gifts wherever they might have appeared.

But the reality is that four of these groups have had their entitlement periods extended. For instance, the period for the Bowral Vietnam Memorial Walk Trust Inc was extended from August 2005 to August 2006, which of course is already past. The Dunn and Lewis Youth Development Foundation has had its period for eligibility extended from November 2005 to January 2007, and so on. I am encouraged that there is, by that process—in other words, granting the entitlement for a limited period—an opportunity for review and an opportunity to ensure that the taxpayers’ contribution in this matter is being spent in an appropriate way and that taxpayers are getting value for money from this process.

Then one looks at the wider situation of the application of income tax or income tax exemption to certain so-called charitable operations. I have never been able to understand why the manufacturer of the most popular breakfast cereal in Australia for decades pays no tax because it is owned by a church group. I can understand that churches in the normal practice of delivering assistance and encouragement to people should not be taxed, but when they operate the biggest corporate entity in breakfast cereals in Australia I wonder whether that is truly a churchly activity. I would have thought that, even on the basis of competition, there is a huge advantage extended to someone who can be in the marketplace and not have to attach or deduct from their profitability company taxation.

I am not sure that that is a widely held view. I have heard that every penny made goes to good causes, and there are many other examples of that nature. I do not want to be too specific about the one I have mentioned.

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