Australian firms set up to promote agriculture get charity tax concessions despite billion-dollar revenue

Productivity commission pushes to remove charity status for entities such as Co-operative Bulk Handling and Queensland Sugar Limited after inquiry into philanthropy

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Two companies set up to promote the agricultural industry are getting charity tax concessions despite annual revenues of more than a billion dollars each.

Under existing rules, the companies have been given charity status, which can make them eligible for tax breaks, including income and payroll tax, GST concessions and deductible gift recipient (DGR) status.

But the arrangements have long drawn criticism and now the productivity commission has said “all charities that advance industry” should be removed from DGR status, and has criticised all tax concessions for agricultural entities.

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