Church of Jesus Christ of Latter-day Saints accused of being a cult and exploiting a tax loophole in Australia: inquiry
A submission to a government inquiry has alleged the Church of Jesus Christ of Latter-day Saints is a cult and allegedly exploited a loophole to claim up to $750m in tax deductions in Australia.
Exclusive: Australia’s Mormon church is a “cult” that has allegedly exploited a loophole to allow it to claim tax deductions on up to $750 million of donations, a public submission to a government inquiry claims.
The Church of Jesus Christ of Latter-day Saints is accused in the submission of being “essentially the only religious group in Australia where its members can claim a tax deduction on their tithes.”
The Mormon church, which has a global $300 billion investment fund, also allegedly asks teenagers invasive questions about their sex lives, tearing families apart and targeting vulnerable people to join.
The claims comes after Nationals leader David Littleproud raised concerns about the US branch of the Mormon church “outcompeting Australian farming families” by paying $500 million for property here this year.
The Church of Jesus Christ of Latter-day Saints provided an 1100-word response, denying it was a cult, saying it complied with charity and tax rules and had donated more than $2 billion to aid projects last year.
Details of the accusations against the church are contained in a 29-page report compiled by Dr Neville Rochow KC which was made public on Wednesday by a government inquiry into “the recruitment methods and impacts of cults and organised fringe groups.”
His submission alleges “the Mormon Church is a cult; one that has amassed staggering wealth at its members’ expense.”
The submission also claims that the church has “funnelled” $750m of donations made in America through one of its entities, LDS Charities Australia, since 2014 to be able to claim a tax benefit.
“As a direct consequence, the Australian Tax Office has given the Australian LDS Church Deductible Gift Recipient (DGR) status, which has enabled Australian Mormons to claim 100 per cent of their tax back on their tithing,” Dr Rochow’s submission claims.
“It is likely that little, if any, Australian tithing goes towards humanitarian aid.”
When asked about whether Mormon church tithes were tax deductible, the ATO said in a statement: “Tithings to a religious organisation are generally not tax deductible. If a religious organisation runs a separate fund or distinct entity that has DGR endorsement, voluntary donations (but not compulsory payments) to that specific fund may be deductible.
“Donations to DGRs can only be used for the specific purpose for which they are endorsed, not the broader religious purposes of the organisation.”
The church said in a statement that LDS Charities Australia supported 146 projects in 55 developing countries.
“Church members who make voluntary tithing contributions can choose to direct their donations to LDS Charities Australia,” the church said.
“As with all other donations made by Australian taxpayers to registered charities, these contributions are tax deductible.”
The church’s wealth has impacted on Australia’s farming property market.
A company linked to the US based Mormon church paid almost $500m for farms at Worrall Creek in Queensland, and Moree, Forbes and Gunnedah in NSW between August 2024 and April this year.
Mr Littleproud has raised concerns about the deals because they were not subject to a Foreign Investment Review Board probe, due to Australia’s Free Trade Agreement with the United States.
“I don’t think it was the intent of the original agreement, that we’d ever envisage that an organisation would take such a large slice of agricultural land in this country,” he said.
“It allows a church or large corporate who has significant capital backing, to outcompete Australian farming families.”
The Mormon church, which has its headquarters in Salt Lake City, Utah, has more than $300bn in a stock portfolio under an entity called Ensign Peak Advisors.
The value of the funds, which does not include the churches’ temples and buildings around the world, has doubled since whistleblowers revealed its existence in 2019.
Former Mormon bishop Simon Southerton said: “The Mormon Church could continue without any members forever because of its income from its investments now.”
He said the church pressured members to give 10 per cent of their income — a tithe — often leaving young families and pensioners struggling to pay bills.
“Members are really hurting it and they’re really struggling. And I think this is why a lot of them are leaving this, quite a large exodus from the LDS Church in Australia,” he added.
Dr Rochow’s submission to the Victorian government “inquiry into the recruitment methods and impacts of cults and organised fringe groups” also accuses the church of controlling its members’ behaviour, with strict rules banning alcohol, coffee and other hot drinks except herbal tea.
Mormons are allegedly ordered to wear strict, conservative underwear that limits clothing choices for women.
The church practices “thought control” and “information control”, with members told to only access church approved books and websites, the submission alleges.
The submission also accuses the church of invading the privacy of young people, potentially opening them to the risk of sexual abuse.
“It is very common for youth to be regularly asked intimate questions about their sexual activity, including if they masturbate or have engaged in any sexual activity with others,” the submission claims.
“All of these behaviours are opportunities for leaders to groom younger people, making them more susceptible to psychological and, in some cases, sexual abuse.”
The church added in a statement: “Leaders and members are guided by the two great commandments to love God and love their neighbour.
“Church services each week include the sacred sacrament ordinance where bread and water are blessed and passed to all participants in remembrance of the life and sacrifice of Jesus Christ.”
It said “the Church’s worldwide missionary force of 84,000 can be found in communities across the country.”
“These enthusiastic volunteers are happy to answer any questions people have about the Church.”
stephen.drill@news.com.au
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Originally published as Church of Jesus Christ of Latter-day Saints accused of being a cult and exploiting a tax loophole in Australia: inquiry
