Government Inquiry into Register of Environmental Organisations
Tuesday 21 April 2015 @ 10.58 a.m. | Legal Research
On 26 March 2015 the House of Representatives Committee adopted an inquiry referred by the Minister for the Environment, the Hon Greg Hunt MP, asking the Committee to inquire into and report on the Register of Environmental Organisations.
Terms of Reference of Committee
The House of Representatives Standing Committee on the Environment will inquire into and report on the administration and transparency of the Register of Environmental Organisations (the Register) and its effectiveness in supporting communities to take practical action to improve the environment.
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.
Final submissions are due by 21 May 2015.
Reaction to Announcement of Inquiry
Committee Chair, Alex Hawke MP, said the committee looks forward to hearing from a range of environmental organisations, including those currently listed on the Register, and other interested parties:
“Over 600 environmental groups are currently deductible gift recipients. This allows them to access taxdeductible donations to fund important, practical work to improve the natural environment. We need to ensure that tax deductible donations, which are a generous concession from the taxpayer, are used for the purpose intended and expected by the community.”
Queensland LNP senator Matthew Canavan expanded further and said a preliminary audit showed eco-charities were getting tax deductibility status to engage in political rather than environmental activity:
"We've got 100 to 150 groups that seem to have their purpose at stopping industrial development, not just mining, some of those developments include tourism developments or agricultural developments but engaging in what I would view as a political debate, not the environmental debate."
Deductible gift-recipient status allows eligible organisations, such as those on the environmental register, to receive tax-deductible gifts and contributions. Consistent with similar schemes in the United States and Europe, the environmental register was established as an incentive for citizens and corporations to fund organisations that are active in the public sphere, while also feeding into the logic of small government and shifting the burden of catering for social needs back onto the community. However, unlike other jurisdictions, the High Court held in 2010 that in Australia, groups with tax-deductible status also have the right to engage in political debate and advocacy. The judgement described the freedom to speak out on political issues as “indispensable" for “representative and responsible government”.
Environment NGOs said funding had already been cut for environmental campaigns and lawyers, and the latest move was part of a campaign against the sector. Mr Walker, from Friends of the Earth, is quoted as saying:
"The current House of Representatives inquiry is an attempt to silence the environment movement. We have no doubt that this is more about politics than about facts."
As also pointed out in the Conversation:
"In terms of the wider political context of this inquiry, we might also consider:
- last year’s attempt by Liberal MP Richard Colbeck to ban environmental boycotts;
- incidences of gag clauses being written into the contracts of community legal centres;
- the defunding of voluntary environment, sustainability and heritage organisations and national environmental defenders' offices; and
- the drafting of anti-protest laws in states such as Western Australia.
Against this backdrop, the inquiry can be seen as part of a trend towards quieting the environment movement. Even if it does not result in substantive changes to the law, the inquiry is forcing poorly funded groups to spend time and resources on making submissions to justify their status."
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