“It should be recognised for what it is: a corporation, not a church. Hillsong is really just a sales and marketing operation.”
The tax office wants a special national body set up to monitor “not for profit” charities, admitting that churches – such as the multi-million-dollar phenomenon Hillsong – are literally “invisible” to it.
And the sector is expanding so rapidly that $31 billion a year is now being drawn out of the federal Budget in tax exemptions to the ever-growing list of groups claiming church and charity status.
The push to put not-for-profit groups under greater fiscal scrutiny comes amid revelations that senior pastors of the Hillsong mega-church and their families are enjoying lavish lifestyles virtually tax-free.
Critics say Hillsong – which makes millions by routinely demanding its followers hand over at least 10 per cent of their salaries for the church coffers – exploits tax exemptions designed to help small, struggling churches.
The Sunday Herald Sun can reveal that Hillsong founder Brian Houston uses a not-for-profit company – Leadership Ministries Inc (LMI) – to fund a burgeoning, tax-free global preaching empire.
LMI and other tax-free companies in the Hillsong network are able to provide housing, cars, overseas travel, accommodation, credit cards and other perks free of fringe benefits or income tax.
And since LMI was set up in 2001, the Houston family’s relationship with the company has included property deals that have earned Brian Houston and his wife Bobbie $1.4 million.
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