SPECIAL REPORT: By Stephanie Tran

The Albanese government has rejected a proposal to strip tax-deductible status from Australian charities found to be supporting illegal occupations, amid mounting scrutiny over donations flowing to Israeli settlements and the Israel Defense Forces (IDF).

Michael West Media has identified 5 charities either sending money to the IDF or to parties associated with illegal West Bank settlements in Occupied Palestine.

The proposed amendment, introduced by Greens Senator Mehreen Faruqi, would explicitly bar organisations from receiving deductible gift recipient (DGR) status if they are found to have supported an “illegal occupation”.

“The fact that people are sending money to support the war crimes of the Israeli military and to expand illegal, violent settlements in the West Bank is bad enough, but that Australian taxpayers are subsidising these settlements is completely outrageous,” Faruqi said.

“Supporting these heinous crimes deserves investigation, not a tax deduction.”

The amendment, circulated in the Senate as part of the Treasury Laws Amendment (Supporting Choice in Superannuation and Other Measures) Bill 2025, would insert a new provision into the Income Tax Assessment Act 1997 denying DGR endorsement to any entity that has “advocated, prepared, planned, assisted in, financed, fostered, supported … or contributed to the establishment, maintenance or expansion of the illegal occupation”.

It would also empower the foreign affairs minister to formally declare what constitutes an “illegal occupation” for the purposes of the law.

Charities funding illegal settlements
This year, MWM released a series of investigations revealing that Australian charities are funnelling tax-deductible donations to projects linked to Israeli settlements in the occupied West Bank, which are illegal under international law, as well as to initiatives supporting IDF soldiers.

In the Senate debate on the amendment, Greens Senator Penny Allman-Payne cited the findings of the MWM investigations.

She highlighted figures showing that Jewish National Fund Australia had remitted more than $125 million to Israel since 2009, while the United Israel Appeal Refugee Relief Fund had transferred approximately $376 million since 2013 via Keren Hayesod, with a portion of these funds used for settlement expansion and IDF-linked programmes.

Allman-Payne also referenced the activities of the Chai Charitable Foundation, which earlier this year hosted fundraisers for organisations providing direct support to IDF soldiers and settlement communities, including in Tekoa and Hebron, before removing the campaigns following questioning by MWM.

“It is obviously of significant concern if there are charitable organisations in Australia that are funnelling funds to illegal occupiers and illegal settlements,” Allman-Payne told the Senate.

She noted that the Australian Charities and Not-for-profits Commission (ACNC) had received 896 complaints relating to 88 charities in connection with the Israel-Gaza conflict between October 2023 and December 2025.

“Given that these donations are tax-deductible . . .  that effectively means taxpayers are subsidising illegal occupation and militarisation,” she said.

Government rejects amendment
In response, Finance Minister Katy Gallagher stated that the government would not support the Greens amendment, arguing that existing regulatory frameworks already prohibit unlawful conduct by charities.

“There is no DGR category or purpose that allows charities to support illegal activities at home or abroad,” Gallagher said.

She pointed to the ACNC’s governance standards, which require charities to operate lawfully and remain accountable, as well as external conduct standards governing overseas activities.

However, Gallagher acknowledged a key limitation: those standards require compliance with Australian law, but

do not extend to conduct under international law.

Charities operating overseas must take “reasonable steps” to ensure proper governance and compliance with Australian legal obligations, including sanctions, anti-money laundering and counter-terrorism financing laws, she said.

Organisations found to be in breach risk losing their charitable registration, which can in turn lead to the loss of DGR status.

Referral for investigation
Gallagher suggested that concerns about specific organisations should be referred to the ACNC for investigation.

Faruqi said the government’s position amounted to wilful inaction.

“The Labor government clearly wants to keep its head in the sand and is looking the other way while this happens,” she said.

“This is just another example of the government’s complicity in the ethnic cleansing of Palestine.

“It is two-faced for the Government to say it supports a Palestinian state while effectively subsidising its destruction.”

Minister Gallagher and Andrew Leigh (Assistant Minister for Productivity, Competition, Charities and Treasury) were contacted for comment.

Regulatory obligations
A spokesperson from Leigh’s office provided the following response:

“The government expects all registered charities to meet their regulatory obligations and to obey all Australian laws. This is a condition of maintaining charitable status.

“The ACNC is the independent regulator of charities and complaints involving conduct that could harm people or involving the misuse of a charity for terrorism purposes or to foster extremism are a compliance priority for the ACNC.

“The ACNC already has powers to revoke the charitable status of charities involved in serious illegal activity.”

Article by AsiaPacificReport.nz

Since 2013, more than $400 million in tax-deductible donations have flowed through an Australian charity, including direct to IDF soldiers.

United Israel Appeal (UIA) Australia has remitted $376m to Israel via its global partner Keren Hayesod, according to Australian Charities and Not-for-profits Commission (ACNC) financial disclosures.

In 2024 alone, UIA Australia received $50.9 million in tax-deductible donations and sponsorships.

Financial statements from Keren Hayesod, the Israel-based body that receives and distributes UIA funds, show it received A$323 million in global donations in 2024, with 98.5 percent originating overseas.

On that basis, Australian fundraising accounted for roughly 13 percent of Keren Hayesod’s worldwide donation base last year.

‘Every dollar aligned with Israel’s national priorities’
At the UIA Victoria AGM in November 2025, UIA leadership were explicit about the organisation’s role in Israel. David Slade, president of UIA Victoria, told members:

“We are the only organisation in Australia raising funds for Israel that holds a seat at every table of decision-making authority mandated to rebuild the country from the north to the south.”

“We are proud that every dollar we distribute is aligned with Israel’s national priorities.”

Julian Black, outgoing federal treasurer of UIA, reported that $39.2 million had been sent to Israel nationally, including $14.4 million from Victoria, in the 2025 campaign period to mid-November.

UIA Australia describes its central mission as supporting aliyah, “ascent”, referring to Jewish immigration to Israel, and strengthening Israeli society. They state that they “raise funds within Australia and transfer them directly to Keren Hayesod-UIA”.

Keren Hayesod, founded in 1920, describes itself as the “preeminent worldwide fundraising arm for the people of Israel,” operating in dozens of countries. UIA Australia functions as its Australian partner, channelling hundreds of millions of dollars in tax-deductible donations to the fund.

At the 2025 AGM, Slade said:

“This is not theory. It’s delivery. It’s national in scale, national in scope. It aligns with Israel’s priorities and is executed by our global partners.”

Support for ‘lone immigrant soldiers’
Among the programmes UIA promotes in Australia is assistance for “lone immigrant soldiers”, individuals who migrate to Israel and serve in the Israel Defense Forces (IDF) without immediate family support in the country.

Through the “Wings Programme”, UIA partners with the Jewish Agency for Israel to provide grants and assistance to immigrant IDF soldiers. UIA states that they supported 2200 lone immigrant soldiers in 2024.

According to a report compiled by the Knesset, in August 2024, there were 6731 lone soldiers serving in the IDF.

At the same AGM, Slade disclosed that his own son is currently serving in the IDF as a lone soldier, describing himself as “a lifelong Zionist”.

UIA also funds the Net@ programme, which provides technology education for youth. Promotional materials for the programme state that graduates are “strong candidates for elite IDF units”.

Overseas funding networks and settlement links
In 2022, Pastor Larry Huch raised $8 million for Keren Hayesod through his ministry to help “settlements take over produce farms in the West Bank”.

“One of the main Bible prophecies is helping Jews return to the nation of Israel, so we started working with Keren Hayesod with projects such as making aliyah. We help settlements take over produce farms in the West Bank, which is Judea and Samaria,” Pastor Hutch said.

According to an analysis by Canadian human rights organisation Just Peace Advocates, public filings by UIA Canada show that funds linked to the broader Keren Hayesod network have supported organisations assisting IDF veterans and institutions located in Israeli settlements in the occupied West Bank.

Comparable programme-level detail is not disclosed in Australian ACNC filings, which aggregate remittances to Keren Hayesod.

UIA Australia did not respond to questions regarding whether they have oversight of which initiatives are supported by the funds they provide to Keren Kayesod and whether they engage in due diligence practices to ensure that these programmes comply with ACNC External Conduct Standards and DGR conditions.

A charity operating in a genocide
UIA’s fundraising expansion has occurred during the Gaza genocide and escalating violence across the occupied Palestinian territories.

A January 2026 report by the UN Office of the High Commissioner for Human Rights found that Israeli laws, policies and practices have created “asphyxiating” conditions for Palestinians in the West Bank and East Jerusalem.

The report stated that there has been an “unprecedented deterioration of the human rights situation” since October 2023, as Israeli government “further expanded the use of unlawful force, arbitrary detention and torture, repression of civil society and undue restrictions on media freedoms, severe movement restrictions, settlement expansion and related violations in the occupied West Bank”.

In his National Press Club address, Chris Sidoti, a commissioner on the UN Commission of Inquiry on Palestine and Israel, stated that in light of the commission’s finding that Israel has committed genocide in Gaza,

“anyone who has served in any arm of the Israeli military in Gaza should be treated as a suspect.”

UIA CEO Yair Miller previously told Michael West Media that “the United Israel Appeal is fully compliant with Australian law”. They did not respond to a follow-up request for comment regarding the matters discussed in this article.

Article by AsiaPacificReport.nz