“Subsidising violence.” Labor accused of looking the other way

The Labor Government has again refused to impose sanctions on illegal settlements and charities funding Israel’s war effort, with Senator Mehreen Faruqi accusing the government of subsidizing violence. Stephanie Tran reports.

Senator Faruqi used his Senate speech today to renew pressure on Labor after Labor once again rejected a proposal to remove tax benefits from entities that finance Israeli settlements.

Speaking in parliament on Monday, Faruqi said: MWM Investigations reveal charities operating in Australia are contributing to settlement projects in the occupied West Bank while maintaining discounted gift recipient (DGR) status.

“It’s bad enough that people are sending money to support the Israeli army’s war crimes and expand illegal, violent settlements in the West Bank,” he said.However, it is stated that Australian taxpayers are funding these settlements and this violence is completely ugly and unacceptable.

His remarks follow the government’s decision to oppose the Greens’ amendment, which would strip DGR status of organizations found to be supporting “illegal occupation”.

Faruqi told the Senate that the government’s position contradicts its recognition of the Palestinian state and its recognition that Israeli settlements in the West Bank are illegal under international law.

“The West Bank is recognized as illegally occupied by the Albanian government… but Australian charities support the illegal occupation of Palestine,” he said. This amendment will ban this once and for all,

Supporting this should not only be a matter of morality but also common sense.

proposed changes will make changes Income Tax Assessment Act 1997 Denying tax-deductible status to organizations that directly or indirectly support an illegal occupation, including financing or contributing to the expansion of settlements.

MWM has published a series of studies revealing that Australian charities with tax-deductible status send hundreds of millions of dollars in donations each year to fund initiatives that support Israeli settlements and IDF soldiers.

Faruqi also noted the humanitarian situation in the West Bank, telling the Senate that more than 1,000 Palestinians have been killed there since October 2023, alongside widespread displacement and settler violence.

“By maintaining the DGR status of these organisations, the government is sending a very clear message that this violence is not a problem and we support it,” he said.

Supporting these heinous crimes deserves investigation, not tax cuts.

He pointed out: 2024 Advisory Opinion The International Court of Justice (ICJ) found that Israel’s occupation of Palestinian territory is illegal. The ICJ ruled that third states, such as Australia, had an obligation to prevent economic relations that would help Israel maintain its illegal presence in occupied Palestinian territory.

“Despite recognizing that Israel’s settlements in the West Bank are illegal, in defiance of the international court, the Albanian government continues to allow and even reward charities that provide and profit from these illegal settlements under the DGR scheme,” Faruqi said.

The Greens senator also accused the government of inconsistency in its approach to charity regulation, claiming the government had denied some organizations DGR status while allowing others linked to settlement activities to retain tax privileges.

“The Albanian government’s priorities are completely confused,” he said. “They say no to granting DGR status to life-saving animal welfare charities, but say a resounding yes to funding charities that support illegal occupations.”

Faruqi repeated his earlier criticism that Labor was “looking the other way”. “It is hypocritical and shameful for the government to say it supports a Palestinian state.

while effectively financing its destruction.

government response

Responding on behalf of the government, Labor Senator Anthony Chisholm said the change was unnecessary, arguing that existing regulatory frameworks already prohibit charities from engaging in illegal behaviour.

“There is no DGR category or purpose that allows aid agencies to support illegal activities at home or abroad,” Chisholm told the Senate.

He noted the ACNC’s governance standards, which require charities to operate legally and be accountable, as well as external standards of conduct that apply to overseas activities.

These rules require charities to comply with Australian law, including anti-money laundering and counter-terrorism financing legislation, and to take reasonable steps to ensure appropriate oversight of funds distributed overseas.

However, Chisholm acknowledged that these standards “do not cover applications under international law”; This limitation was previously acknowledged by Senator Katy Gallagher when asked about the decision by Labor’s Senator Penny Allman-Payne to oppose the amendment.

Charities funding Israel’s illegal settlements are untouchable, Labor says