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The Labor government is overriding our courts and regulators to hand-pick which advocacy groups get tax-deductible status.

In a recent Senate Estimates hearing, I questioned why Equality Australia was granted specific Deductible Gift Recipient (DGR) status in the 2025 Budget, despite being rejected by the Australian Charities and Not-for-profits Commission (ACNC), the Administrative Appeals Tribunal (AAT), and the Full Federal Court. All three bodies ruled that their work is political advocacy, not “direct benevolent relief.”

When I asked for the legal basis or the principles used to bypass these independent determinations, the government hid behind “Cabinet confidentiality.”

This isn’t just about one group; it’s about the integrity of our tax system. We cannot have a system where groups who lose in court simply lobby a Minister for a custom-made law.

— Senate Estimates | December 2025

Transcript

Senator ROBERTS: My questions are actually brief, but I have to untangle the acronyms. I have to give you some background first to set up my questions. Equality Australia applied for public benevolent institution status in 2020 and was rejected by the Australian Charities and Not-for-profits Commission because its primary purpose was advocacy and law reform, not direct benevolent relief. The Australian Charities and Not-for-profits Commission found its activities were ‘too indirect’ to qualify as benevolent relief. The Administrative Appeals Tribunal upheld the Australian Charities and Not-for-profits Commission’s decision. The Full Federal Court dismissed Equality Australia’s appeal in September 2024, confirming that advocacy and campaigning for law reform did not meet the statutory definition of a public benevolent institution.  

After losing in court, Equality Australia wrote to Assistant Minister Andrew Leigh in November 2024, seeking a specific listing for deductible gift recipient status under the Income Tax Act 1997. Cabinet approved the listing in early 2025 and the March federal budget included Equality Australia as a named deductible gift recipient entity for five years. Media commentary highlights concerns that this decision effectively overrode determinations by three accountability bodies, the Australian Charities and Not-for-profits Commission, the Administrative Appeals Tribunal and the Federal Court.  

My questions are: why did Treasury support a specific deductible gift recipient status listing for Equality Australia after the Australian Charities and Not-for-profits Commission refused public benevolent institution status, the Administrative Appeals Tribunal affirmed and the Full Federal Court dismissed the appeal on 5 September 2024 all on the basis that Equality Australia’s activities are advocacy, not direct benevolent relief? What principles justify overriding three independent determinations?  

Ms Berger-Thomson: Decisions made on DGR-specific listings are decisions of cabinet.  

Senator ROBERTS: Minister, what principle justifies overriding three independent determinations?  

Senator Gallagher: I don’t have anything further to add to that. I’m not aware of it.  

Senator ROBERTS: Could you take it on notice?  

Senator Gallagher: I’m happy to take it on notice.  

Senator ROBERTS: Did Treasury advise cabinet that a specific listing bypasses the ordinary deductible gift recipient pathway for a single organisation?  

Ms Berger-Thomson: Typically, we do provide advice on specific listings. Specific listings are only for those organisations that do not qualify for any of the other 52 DGR categories that are administered by the ATO.  

Senator ROBERTS: You did give advice?  

Dr Johnson: It’s not appropriate to talk about cabinet material in Senate estimates.  

Senator ROBERTS: What about Treasury advice?  

Dr Johnson: That’s Treasury advice for a cabinet process.  

Senator ROBERTS: You can’t provide it on notice?  

Dr Johnson: No, not in relation to things that relate to a cabinet process.  

Senator ROBERTS: That’s pretty handy. I have two final questions: on what legal basis did Treasury rely to proceed where the courts found the activities did not meet the public benevolent institution test? Secondly, how does Treasury ensure consistency with the statutory meaning of ‘benevolent relief’ used by the Australian Charities and Not-for-profits Commission, the Administrative Appeals Tribunal and the Federal Court, when recommending by name a deductible gift recipient? What legal basis did Treasury rely on?  

Senator Gallagher: As to specific listings—there are a few every budget that the ERC or the government considers when other avenues have been exhausted. That reflects a decision of government.  

Senator ROBERTS: I want to know what legal advice Treasury received.  

Senator Gallagher: Treasury provide advice on the listings that come before us. Ministers get briefed appropriately, but ultimately it’s a decision for government.  

Senator ROBERTS: Why did the government ignore or bypass three institutions with experience in this area and responsibility for this area—the Federal Court, the Administrative Appeals Tribunal and the Australian Charities—  

Senator Gallagher: I’ve taken that on notice. I was just more generally saying how the decisions are taken. 

Senator ROBERTS: Could you provide an answer to that?  

Senator Gallagher: I have undertaken to do that.  

Senator ROBERTS: And also the basis for the decision?  

Senator Gallagher: Yes, I have taken that on notice.  

I questioned the Commissioner regarding her September trip to Stanford and meetings with US tech firms. She will provide a detailed log of her itinerary, speaking engagements, and total costs on notice. Australians deserve to know exactly how their money is being spent and what is being discussed behind closed doors.

I then queried the Minister regarding concerns raised by US House Judiciary Committee Chairman Jim Jordan about the Commissioner’s conduct. While I support protecting children from harm, we must be vigilant when unelected officials are labelled “extreme” by international peers.

Lastly, I was interested to know what the Commissioner’s philosophy was regarding censorship, noting the “enormous power” that has been given to her. She denied being a censor, stating she only acts on public complaints regarding “highly damaging” and “refused classification” material, specifically excluding political speech.

The eSafety Commissioner has enormous power over what you see and say online. I will continue to hold this agency to account to protect the rights of adult Australians from government overreach.

P.S. At one point during this session, Senator Green accidentally called me “Minister” – saying “maybe one day, if the LNP has their way.” She even joked that One Nation is already writing policy for the LNP! 😆😆

— Senate Estimates | December 2025

Transcript

CHAIR: Senator Roberts, I understand you have a few more questions.

Senator ROBERTS: Yes, just three. Commissioner, you visited Stanford University in September this year as part of a USA trip. Did Australian taxpayers fund that?

Ms Inman Grant: Yes, I went, and I met with eight of the AI companies and the social media companies. Then I spent a day and a half at the Trust and Safety Research Conference.

Senator ROBERTS: Could you please provide a log of meetings and a record of your speeches, or any other documentation, to assure taxpayers that their money was spent appropriately, as well as the total cost of the trip?

Ms Inman Grant: I sure can.

Senator ROBERTS: On notice.

Ms Inman Grant: Yes.

Senator ROBERTS: Thank you. You’ve already answered a question from Senator Whitten about the House Judiciary Committee chairman wanting you to testify, so I don’t need to cover that. Minister, does it concern you that your commissioner is engaging in conduct that is so extreme that the US Congress, specifically the House Judiciary Committee chairman, Jim Jordan, is alarmed?

Senator Green: Minister, I think the eSafety Commissioner’s address—

Senator ROBERTS: I’m not a minister.

Senator Green: Sorry, Senator—maybe one day, if the LNP has their way.

*Senator Henderson interjecting—*

Senator Green: You never know. They wrote your net zero policy, so you never know. We are very proud of the reforms that we are undertaking. To be fair, I’m sure the coalition was very proud of the steps that they took in terms of online safety when the eSafety Commissioner was established. For the most part, we have had bipartisan support for these types of reforms, because they keep Australians safe. The social media ban or minimum age will seek to keep our children safe. It’s incredibly important. I know you come in here quite often talking about the safety of children and wanting to keep harmful material away from them. That is the work of the eSafety Commissioner. It’s open to other governments or other people in other parliaments to have their judgment of it, but from an Australian government point of view we are very proud of the work that she does.

Senator ROBERTS: Commissioner, you said earlier, in roughly these words, that you’ve never claimed to censor the net globally. Why do you think people think this?

Ms Inman Grant: We talked about Elon Musk’s tweet that said she’s the eSafety commissar trying to globally regulate the internet, and then Ben Fordham then picked it up, and it’s just had a life of its own.

Senator ROBERTS: I’ve complimented your office on its work in protecting children, quite clearly. There are other concerns we have with your work because it can cause consequences for adults that we don’t like, but it’s not appropriate to discuss it here. What’s your philosophy on censorship?

Ms Inman Grant: My philosophy is I’m not a censor. I respond to complaints from the public. We received many about the Charlie Kirk assassination and about the stabbing of Iryna Zarutska on a train where she bled to death and the decapitation of the Dallas hotel owner. If you think that that’s overstepping when that’s something that’s highly damaging and was determined—

Senator ROBERTS: No, I didn’t say that. I was wanting to know your thoughts on censorship—that’s all—because you’ve got enormous power.

Ms Inman Grant: My thoughts on censorship? Well, what has been helpfully built into the Online Safety Act is that we’re not regulating for political speech or commentary. It’s where either online invective or imagery veers into the lane of serious harm. You provide us with thresholds. Sometimes those thresholds are tested and sometimes they’re a grey area, but I think we help thousands of people every year. We’re doing world-leading work that the rest of the governments around the world are following. I think we’re punching above our weight. We’re a very small agency given the size of our population. So I guess I don’t have a view. I don’t see myself as a censor. I don’t tell you what you can or can’t say unless it’s refused classification or it’s trying to silence someone else’s voice by targeted online abuse that reaches the threshold of adult cyberabuse.

Senator ROBERTS: Thank you. Lastly, I think it was Mr Fleming who invited us to have a briefing. We haven’t forgotten. We’d like to do that, but we’ve been a bit busy. We will do it one day.

Mr Fleming: Maybe in the new year. The offer still stands.

Senator ROBERTS: Thank you