Talking about tax breaks for extreme greens

June 30, 2015: THIS Question and Answer session with my parliamentary colleague Alex Hawke provides some information regarding the Inquiry into the Register of Environmental Organisations which I am involved with. What this is really about is questioning the ability of millionaires and others having the ability to get a generous tax break when they donate to environmental groups who want to see the demise of the industry this region depends on. People can support whatever organisation they wish, but do we really want them to get a tax deduction for supporting those who seek to destroy our livelihoods?Q: Why did you instigate the Inquiry into Register of Environmental Organisations?A: The Inquiry was established to examine the Deductible Gift Recipient (DGR) status given to almost 600 environmental groups on the Register of Environmental Organisations.  This register sits separately to other charities and is administered by the Environment Minister and the Assistant Treasurer.The inquiry will look at issues such as transparency and the types of activities, according to the terms of reference.The Inquiry will have particular regard to:

•  The definition of ‘environmental organisation’ under the Income Tax Assessment Act 1997, including under Subdivision 30-E;
•  The requirements to be met by an organisation to be listed on the Register and maintain its listing;
•  Activities undertaken by organisations currently listed on the Register and the extent to which these activities involve on-ground environmental works;
•  Reporting requirements for organisations to disclose donations and activities funded by donations;
•  The administration of the Register and potential efficiency improvements;
•  Compliance arrangements and the measures available to the Department of the Environment and the Australian Taxation Office to investigate breaches of the Act and Ministerial Guidelines by listed organisations; and
•  Relevant governance arrangements in international jurisdictions, and exploring methods to adopt best practice in Australia.

Finally, there are serious concerns about organisations taking taxpayer concessions like DGR and using money for purposes outside of the Act, for illegal purposes, or for other reasons. For example, should an environmental organisation with DGR status be allowed to commit crimes such as in 2011 when two Greenpeace activists destroyed a genetically modified wheat crop researched by the CSIRO?These crops had been engineered by CSIRO to increase its nutritional value and agricultural survivability in different climates. Greenpeace released a video of protestors destroying the crop to garner publicity. The Greenpeace activists were fined a total of $280,000.Q: What would you say to the Queensland Conservation Council claims that the inquiry is a “witch hunt designed to stifle community debate”?A: This inquiry is a properly established inquiry of the Parliament to look at how taxpayer concessions are granted and the use of those taxpayer concessions by green groups on the Register of Environmental Organisations. For the QCC to claim it is a witch hunt, is to suggest that green groups are beyond the reach of the law, beyond the reach of the Parliament, or are not required to meet the transparency and accountability of other organisations.When you take a taxpayer concession, you should be prepared to meet the requirements of the taxpayer in granting it and be prepared to be scrutinised. Transparency and accountability of green groups taking tax payer funding is crucial in order to maintain the integrity of public confidence, to ensure proper on-the-ground and practical environmental work is being achieved.Taxpayers certainly would not want to fund illegal activities.  I have personally invited all 591 green groups that receive DGR status to participate in the inquiry, and welcome their input.Q: What has been the response?A: The response so far has been substantial and overwhelmingly well received.  We have had hundreds of submissions where organisations outline the invaluable on-the-ground environmental work they do – a perfect illustration of public funding being used to improve the environment for practical purposes or for the education purposes outlined in the Act.There have also been concerns raised regarding  the operation of the current system for environmental groups and suggesting improvements. Issues of transparency and accountability are being raised particularly in relation to how taxpayer concessions are spent, if they are being spent on the principal purpose of the organisation and if the money is going to fund any illegal activity.Matters such as requiring all environment groups to meet the same requirements as other charities have been raised.Q: When do submissions close?A: Submissions have closed. However, case by case extensions are issued by the Secretariat. If you have evidence to contribute, please email Secretariat for an extension on:environment.reps@aph.gov.au