From: Duncan Moody [mailto:duncan@npbc.org.au] 
Sent: Thursday, 11 August 2011 11:19 AM
To: NFP Reform Consultation
Subject: Proposed changes to Special conditions for Tax concession entities

To Whom it may concern,

I am writing to you in regards to the recently announced intended changes to the tax endorsement conditions for charities.  As a pastor of a church I am deeply concerned by these changes as it will severely affect the way in which we support those associated with our church who are working outside of Australia.  Many of the funds which are given to overseas missionaries and the programs they are involved with are received from donations by church members after they have already paid tax on their income.  In fact, much of our church work is financially supported from church members who pay tax on their income.  To seek to apply these intended changes to the work of churches will be grossly unfair and detrimental to the charitable work that is carried out by many of them.  Whilst the majority of churches, including our own, do not seek DGR status as Public Benevolent Institutions to attract tax deductible giving for the relief of poverty, misfortune, helplessness etc they all, to some considerable extent, operate to provide such benevolent relief. This relief, though unheralded, is integral to the mission of the Church and is statistically significant to the state.  
It does not seem reasonable for the state to assert, on the basis of the structure of exemption legislation, that relief of poverty is only a function of society to be supported through an endorsed PBI and not through a church. Relief of poverty is, and always has been, integral to the church and the proposed measure will remove its ability to lawfully do so if it wishes to maintain its exemption.
Although the reasoning behind the proposed measures is understandable, for the reasons given above and in the ways indicated, the inclusion of proposed Sec 50-50(2)(c) in its current form, and the exclusion of the previous Sec 50-50(d) provision, will seriously damage the lawful charitable ends of churches.
On the one hand, the law will continue to theoretically declare that the advancement of religion is a legitimate charitable purpose, but on the other hand these measures in particular will deny the churches the capacity to outwork the purpose and thus render it practically illegitimate in Australian society.
I would like to support a provision with a similar effect to the existing Sec 50-50(d) be included in the measures.
I would also like to support that the proposed Sec 50-50 (2) (c) be amended to read as follows
“(c) except for charitable purposes (whether or not within Australia), not donate money to any other entity, unless the other entity is an exempt entity”

Regards,

Duncan Moody
Senior Pastor
North Pine Baptist Church

	T 3204 6366 | F 3886 3444 | M 0402 104 861
44-46 Ogg Road, Murrumba Downs Qld 4503
PO Box 145, Kallangur Qld 4503 
duncan@npbc.org.au| www.npbc.org.au 

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