Further to recent discussions about churches and tax breaks, it is my understanding that donations made directly to churches (eg collection plate, tithing etc) are not tax deductable. Money used to purchase and maintain church property and buildings is not tax deductable. Specific charities associated with churches are tax deductable and have far stricter government interference.

To put this in perspective, union fees/dues are tax deductable, so unions get a far better deal than religions.

Further to recent discussions about churches and tax breaks, it is my understanding that donations made directly to churches (eg collection plate, tithing etc) are not tax deductable. Money used to purchase and maintain church property and buildings is not tax deductable. Specific charities associated with churches are tax deductable and have far stricter government interference.

To put this in perspective, union fees/dues are tax deductable, so unions get a far better deal than religions.

Pentecostal churches are not waiting to inherit the earth. They are taking it now, tax-free.
Business Review Weekly Magazine, Austalian/May 26, 2005
By Adele Ferguson

This weekend more than 200,000 Australians will flock to Pentecostal churches to worship God, clap, sing, speak in tongues, faith heal, and donate 10% of their pre-tax weekly earnings. Some will buy CDs, books, DVDs, mobile-phone tunes, T-shirts, fridge magnets and even a children’s DVD featuring Jesus as a superhero. Others will tune into their TV channels and web sites, visit their art galleries, schools and medical centres and even move their savings into church cash management trusts that hold millions of dollars but are unregulated. All of this is helping to fuel an industry that is turning over more than $500 million a year and growing at warp speed.

Welcome to the new, commercial breed of Christianity that is sweeping Australia and spawning churches that are among the country’s fastest-growing, most entrepreneurial and slickest enterprises. So powerful are the new Pentecostal churches that they are changing politics, influencing business, and turning their founders into millionaires.

Critics of Pentecostal churches say they look more like shopping malls than churches. But their members love it and the churches argue that their ballooning revenue is going back into the community......

Links with business are also growing. Hillsong, for example, has close links with Gloria Jean’s Coffees, one of Australia’s fastest-growing franchises (see the brains of the operation, page 41), and companies such as National Australia Bank (NAB), QBE Insurance and Aon Australia are targeting the members of these churches.

The power of the Pentecostal churches can only increase in the business world. They are tapping into the business market with religious fervour. Many offer business directories, networking groups to help members set up small businesses and network existing ones, conferences and monthly breakfasts. Phil Baker, the pastor of Riverview Church in Perth, is hosting a series of business breakfasts around the country entitled Leadership Lessons from the Roman Empire. One such breakfast, held in Melbourne in May, attracted 500 business people, including some top executives from the NAB. Christian Outreach Centre is offering its members a five-day Business Achievers conference on Daydream Island in August at a cost of $500. Its brochure says: “In just one week you will develop the strategies, skills and motivation to take your place among Australia’s eminent business leaders.”

Like all religions, the Pentecostals have a big advantage over the commercial world in that they do not have to pay tax, they do not file tax returns, they get government concessions and grants, much of their workforce is voluntary so they have relatively small wage bills, and there is little accountability and transparency about what they do or how they spend the money.

freediver wrote on Nov 27^th, 2011 at 3:27pm:


That's not the understanding of BRW which states:

http://hillsongchurch.wordpress.com/2008/02/18/hillsong-gods-millionaires/

Quote:

Seems a bit short on detail - so short on detail that it barely says anything.

If the church has multiple 'arms' that are non charitable, do they pay tax on the profits?

For example a church can have a child minding centre, a men's shed and let's say an op shop.

All the arms are run as individual businesses, but they are connected to the church, do they pay tax like other businesses?

Unless I'm missing something, wasn't the original thread about various churches not paying income tax and not whether or not money given to those churches is tax deductable?

BTW - most churches (okay Anglican and Catholic at least) provide a tax deduction form which you can enclose your collection plate offering. At the end of the financial year they send you a statement for tax purposes - just the same as what other tax deductable charities do. You are also able to claim a nominal weekly donation on your tax return without having to provide a statement or receipts.

Money donated to churches for building upkeep is most certainly tax deductable.