Submission regarding:

Exposure Draft – 
‘In Australia’ Special Conditions for Tax Concession Entities

11 August 2011

Brief Description of Organisation 
 
Voice of the Martyrs in an international, inter-denominational mission committed to informing the world of atrocities against Christians within restricted nations. We serve persecuted Christians around the world by providing Bibles, Christian literature, ministry equipment, medical aid, practical assistance and advocacy. 

Concerns

Professional advice suggests the exposure draft will have the following impact on Voice of the Martyrs:

1)	Loss of income tax exempt status under 50-50(d) of the Income Tax Assessment Act as a member of Australian Evangelical Alliance Inc (Missions Interlink) which is prescribed by law under regulation 50.50.02. This would affect much of the work we do.

As part of our work in servicing the persecuted church, funds are paid:

-	To aid individuals who have been imprisoned, maimed or discriminated in employment as a result of persecution eg Medical practitioners, legal representatives.

-	To aid families in situations where the breadwinner has been imprisoned, killed or maimed eg landlords, food grocers and suppliers for micro businesses.

-	To printers and couriers who assist in the publication and distribution of Christian literature.

-	Funds are paid to builders/contractors to repair homes, businesses and churches which have been damaged during riots/attacks.

-	Funds are paid in support of Pastors or church workers.

2)	Donor organisations would lose their income tax exempt status. We rely on individuals as well as other organisations to fund our work eg churches and schools.
  
 If Voice of the Martyrs loses its income tax exempt status, then under the Exposure Draft any other tax-exempt organisation that makes a donation to us will lose their own tax exemption. This will have a huge impact on the work.

Recommendation

The new law retains exemptions for all prescribed institutions listed in the current regulations. 

A minimum threshold for donations to entities without income tax exempt status should be introduced into the legislation.