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Aid/Watch High Court case puts pressure on government for charity law reform

Friday 12 March 2010

Greens MP Lee Rhiannon, a former Aid/Watch director, has welcomed today's High Court decision to hear the aid watchdog's tax deductibility case, the outcome of which will determine the status of many charity's fundraising activities.

"Now that the High Court has recognised that this is a worthy matter the pressure is on the federal Labor government to provide legal certainty to fundraising activities of Australian charities," Ms Rhiannon said.

"There is a lot riding on the outcome. This is headland issue for free speech, representing a fight for charities to be able to maintain their viability through fundraising.

"This development is being closely watched by a range of charity groups, and I congratulate Aid/Watch for pushing ahead with this matter which has put their organisation under considerable strain.

"While it is welcome news that the High Court has agreed that this case can proceed it should be a wake up call for the federal government to do the right thing, step in and reform the law.

"This law is a hang over of the Howard years and well overdue for reform.

"Treasurer Wayne Swan should fast track legislation to provide a clear definition of charities in law and so end the current uncertainty charities now face in undertaking fund raising activities.

"If matter proceeds it will be a waste of government resources and a drain on the many charity bodies that have committed to help Aid/Watch pursue it.

"The ATO should agree that Aid/Watch will not have to pay costs as they did when this case was before the federal court.

"I was at Aid/Watch in 1994 when we won tax-deductible status and it raised our level of funding overnight.

"If charities are limited in their funding raising activities it means that many groups will be limited in engaging in public debate, advocacy and political action", Ms Rhiannon said.

Ms Rhiannon was a co-founder of Aid/Watch and former director. In 1994 she worked with Aid/Watch colleagues to win tax deductibility status for the organisation.

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