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High-profile think tank China Matters says the Australian Government won’t return its calls

Think tank China Matters has said “fiscal pressures’’ will likely see its funding reduced, and admits it seems to have lost special tax status as the Australian Government turns its back.

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Exclusive: Think tank China Matters has admitted it is “getting the silent treatment’’ from the Government and that it appeared to have lost the special tax status it was seeking.

The comments come three weeks after the organisation — established in 2015 to promote debate about Australia’s relationship with China — had claimed its “government contacts’’ had assured them there had been no change.

News Corp reported on June 14 that China Matters, which has received almost $2 million in taxpayer funds, had fallen out of favour in Canberra and would no longer receive grants from three government departments or be granted deductible gift registration tax status.

In a webinar on July 3, China Matters CEO Michael Clifton was asked by founder Linda Jakobson to comment on the story, which reported concerns raised in Canberra that China Matters was pushing a pro-Beijing agenda.

Former DFAT secretary and now chancellor of the University of Queensland Peter Varghese, and former ASIO and defence chief Dennis Richardson were also involved in the webinar.

“My first comment would be to say that I would prefer that as few people as possible actually read the story,’’ Mr Clifton said.

“Let’s set aside the nonsensical claim that China Matters works to advance a Beijing agenda.

“In relation to government funding, as yet we are unaware of any whole of government edict saying to government departments that they shall not continue funding arrangements with China Matters.

“That said however, the fiscal pressures on the government are very, very real and … we anticipate there will be a significant drop in government funding. Final decisions are still outstanding from the likes of (Prime Minister and Cabinet) and one or two others so there is very real pressure but no whole of government decision that we are aware of.’’

Attorney-General Christian Porter had told News Corp he was reviewing the decision of his department to continue to fund China Matters to see if it was “appropriate.’’ His office said there was no progress to report on his review.

Attorney-General Christian Porter is still reviewing funding for China Matters. Picture: Getty
Attorney-General Christian Porter is still reviewing funding for China Matters. Picture: Getty

Mr Clifton went on to tell the webinar that the deductible gift recipient (DGR) decision, which would have assisted the organisation to raise funds by allowing donors to claim their donations as tax deduction was “more problematic.’’

“We did notice quite some time ago that despite being approved for DGR status in the budget papers we mysteriously were dropped from the enabling legislation,’’ he said.

“Now, despite multiple approaches to the relevant Minister, in this case (Assistant Treasurer) Michael Sukkar, we know only what we’ve read in The Daily Telegraph.

“If indeed the government has made a decision to reverse its previous position, no one has had the courage or courtesy to relay that decision to China Matters.

“That’s a tad blunt but I’m struggling to put it in a more gentle form of words. We seem to have lost DGR but no-one has actually told us that as yet.’’

“I’ve called the office on several occasions. No-one has seen fit to return my calls. We are getting the silent treatment for reasons which remain somewhat of a mystery to me.’’

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Assistant Treasurer Michael Sukkar. Picture: AAP
Assistant Treasurer Michael Sukkar. Picture: AAP

China Matters declined to answer questions ahead of News Corp’s publication of story, but issued a letter after its publication, disputing what it said were “defamatory insinuations’’ about the work on the think tank and its supporters.

“China Matters does not, has not, and will not lobby against Australia or the Australian national interest. Advocacy of ongoing engagement with the PRC does not make one a stooge of the Communist Party of China or an agent of influence. One can call out the government in Beijing and at the same time strongly support – in the national interest – engagement with the PRC,’’ said chairman Kevin McCann.

Originally published as High-profile think tank China Matters says the Australian Government won’t return its calls

Original URL: https://www.couriermail.com.au/business/companies/highprofile-think-tank-china-matters-says-the-australian-government-wont-return-its-calls/news-story/908fb03fe69906d79a441d6aa1756a0e