Hillsong, Aussie charities warned against ‘serious wrongdoing’

A national watchdog investigating the Hillsong megachurch has delivered a general warning to any charity trying to “hide” dodgy dealings.

A national watchdog investigating the Hillsong megachurch has issued a warning against charities who engage in “serious wrongdoing” through complex offshore accounting. Picture: NCA NewsWire / Damian Shaw

A national watchdog investigating the Hillsong megachurch has delivered a general blast against those charities who engage in “serious wrongdoing” through complex offshore accounting.

The megachurch, which has an extensive network of international arms, was accused in parliament last year of “illegally” moving millions of dollars offshore to avoid scrutiny.

Now head of the Australian Charities and Not for Profits Commission Sue Woodward has announced a crackdown on charities with overseas branches.

Hillsong and other Australian charities have been warned about engaging in “serious wrongdoing”. Picture: NCA NewsWire / Damian Shaw

“We are becoming increasingly concerned about charities using complex corporate structures to hide serious wrongdoing,” Ms Woodward said.

“So our message is that it is not complexity per se that is the problem, but complexity used to hide non-compliance, such as using funds for a non-charitable purposes or private benefit.

“It’s a golden rule that charitable funds must be used for the charitable purpose that each charity is registered for.”The ACNC made a “rare” statement in March last year, confirming its probe into Hillsong after documents released in parliament claimed church leaders used “private jets like Ubers” and “went on shopping sprees that would embarrass a Kardashian.”

The church was also accused of misusing $15.7 million of tax deductible funds to purchase Melbourne’s Festival Hall, where the Beatles played.

Hillsong handed over the lease of the iconic music venue to promoter Live Nation after the documents were tabled in parliament by Independent MP Andrew Wilkie.

The release of the documents came as an investigative podcast, Faith On Trial, revealed claims that the church interrogated young women about their sex lives and banned abuse victims from working with children.

The Hillsong Church on George street in Brisbane’s CBD. Picture: NCA Newswire / Dan Peled

Ms Woodward did not name Hillsong in her opinion piece, which was published in Accountants Daily and on the ACNC website.

The ACNC was currently bound by secrecy rules preventing it from detailing its investigations.

New legislation before the federal parliament would allow the ACNC to name and shame charities which were accused of financial fraud.

Assistant Treasurer Stephen Jones said in parliament in November last year that the proposed law would allow the ACNC “to make disclosures about new or ongoing investigations where the disclosure would prevent or minimise the risk of significant harm.”

The current secrecy rules, he added, damaged “public trust and confidence” in the charity sector and weakened the regulator.

Incoming global pastor Phil Dooley. Picture: Facebook

Hillsong was contacted for comment about the ACNC’s report.

The church has yet to release its annual report for the 2021, 2022 and 2023 financial years.

In 2022, the church acknowledged that it had forgiven loans between some of its different entities.

Incoming global pastor Phil Dooley said after the parliamentary disclosure last year that the church was reviewing its practises.

“In any organisation the way financial decisions are made is based on a certain structure and culture,” Mr Dooley said.

“Our structure and culture is changing and needs to change more to ensure we are held to higher level of accountability.”

Originally published as Hillsong, Aussie charities warned against ‘serious wrongdoing’