MATTERS OF PUBLIC IMPORTANCE

Senator DARMANIN (Victoria—Deputy Government Whip in the Senate) (17:29): Let's not pretend that this matter of public importance debate is motivated by a virtuous concern for the charity sector. Let's be honest about what's really happening here. Let's talk about what those opposite are not saying, because this debate is really not about charities.

It's not about food banks helping families put meals on the table. It's not about legal centres supporting people who cannot afford representation. It's not about the thousands of volunteers who give up their time every week to strengthen their communities.

What this debate is really about is the coalition's opposition to Labor's agenda for a fairer tax system. At the heart of this argument is a simple proposition—wealthy individuals who have benefited from arrangements that are unavailable to most Australians do not like the fact that this government is asking them to contribute a little bit more fairly. Now we're being told that, if those individuals choose to withdraw support from charities because of these reforms, somehow that's Labor's fault.

Just stop and think about that for a minute. Charities operate on tight budgets. They often have small teams, limited resources and enormous responsibilities.

Every day, they step in where people need help most, and sometimes on the worst day of people's lives. They provide emergency relief, housing support, legal assistance, mental health services, community programs and countless other services that make life better for Australians. What we're seeing today is an attempt to use charities as a shield in an argument that is really about protecting tax concessions.

We reject that proposition. What this government is trying to do is make the tax system fairer. Discretionary trusts provide tax planning opportunities that are simply not available to the overwhelming majority of Australians who earn their income through wages and salaries.

That is why this government has announced a minimum tax on discretionary trusts from 1 July 2028. Importantly, charitable trusts are not subject to this measure. Donations to organisations with deductible gift recipient status will continue to be tax deductible.

And, perhaps most importantly, we are consulting on implementation details to ensure that charities and other tax-exempt entities continue to be appropriately supported. The apocalyptic claims we have heard from those opposite simply do not reflect the reality of what has been announced. They are just trying to distract from the real issue at hand—this government's determination to make the tax system fairer for Australians.

I can say this: if the coalition are serious about wanting to have a conversation about support for charities, they should be prepared to defend their own record. When Labor came to government, the charity sector was still reeling from the former coalition government's war on charities, from trying to axe the Australian Charities and Not-for-profits Commission through to silencing advocacy from charities, criticising the organisations for speaking up on behalf of the people that they serve and seek to help, and appointing a well-known charity critic to lead the Australian Charities and Not-for-profits Commission.

Charities themselves were so concerned that they repeatedly wrote open letters to Liberal prime ministers asking them to stop treating the sector as a political opponent. We have taken a different approach on this side. We engage with charities respectfully.

We consult with them regularly. We listen to them and we back them with action. That is why we have lifted the minimum distribution to six per cent of net assets, which is expected to see an extra $60 million a year flow to charities.

And we removed the gag order on charities, so they can freely advocate and not be punished as a result of the important work that they do on behalf of the community, some of whom are the most vulnerable. That is why we continue to work with the sector on reforms, including consultation on these ones, and that is why we are committed to ensuring Australian charities remain strong, independent and effective, so they can keep supporting those Australians who need them most.

Let's not pretend that Senator Smith's motion here is about standing up for charities. This government wants charities to prosper. This government has done more to support a strong and independent charity sector than those opposite ever did.

What Senator Smith objects to is not support for charities; what he objects to is tax reform. Australians can see the difference between this argument and what those opposite are saying. We will continue to fight for charities with our record that is long and strong and proud.