Australian Taxes & Israel: Funding IDF & Settlements?

Australian taxpayers are indirectly subsidising donations to Israel’s military and to organisations operating in Israeli settlements in the occupied Palestinian Territories through a network of registered charities with deductible gift recipient (DGR) status, an investigation has found.

Financing the IDF and Settlements

Under Australia’s tax system, donations to DGR-endorsed charities reduce a donor’s taxable income, meaning the public indirectly contributes to the charity’s activities. Documents reviewed indicate that several Australian charities have raised and transferred funds to Israeli military units and to settlement-linked projects in occupied Palestinian territory.

The Chai Charitable Foundation

The Chai Charitable Foundation reported more than $19 million in revenue in 2024, with the vast majority of its funding directed overseas. Registered with the ACNC in 2017, Chai states its purpose is to alleviate poverty, distress and suffering in Australia and internationally.

In its 2024 financial report, the charity disclosed $15.39 million in grants and donations for use outside Australia, compared with $1.62 million domestically. While the charity says it supports low-income families and “civilian victims of terror” in Israel, it has also hosted fundraising campaigns linked to organisations that openly provide equipment to the Israel Defense Forces (IDF).

One such campaign supports One People for Israel, founded in 2023 by Ari Briggs, an Australian-born man who emigrated to Israel. The organisation says it works directly with senior IDF logistics officials to deliver helmets, protective vests and other military equipment to Israeli soldiers. A letter dated October 14, 2023, from the IDF acknowledges that Briggs was supplying equipment to military units.

United Israel Appeal

The United Israel Appeal Refugee Relief Fund Limited (UIA) reported $50.9 million in revenue in 2024. Established in 1992 and based in Melbourne, UIA raises funds almost exclusively for overseas use, though it does not publicly break down how much of its income is spent outside Australia.

The charity describes itself as part of Keren Hayesod, a global fundraising network that operates in more than 40 countries and acts to further the national priorities of the State of Israel. UIA funds programs that assist people to serve in the IDF.

Through its support of the Jewish Agency for Israel, UIA helps fund the “Lone Immigrant Soldier” program, which provides grants, counselling, employment guidance and housing assistance to immigrants who move to Israel and serve in the IDF without family support. Around 1,300 lone soldiers complete their army service each year, according to UIA. UIA also funds education and training initiatives such as the Net@ program, which provides advanced technology training to young people. Promotional material for the program states that graduates are “strong candidates for elite IDF units”.

Charities Response

MWM contacted each of the charities identified in this investigation, seeking comment on whether they have provided funds, equipment or other support to the Israel Defense Forces or illegal settlements in the occupied West Bank since October 2023.

United Israel Appeal CEO, Yair Miller stated that “United Israel Appeal is fully compliant with Australian law”.

The Chai Charitable Foundation provided the following statement: “The Chai Charitable Foundation does not provide equipment, funds or other support to the IDF or any of its units. The Chai Charitable Foundation does not support any activities that are affiliated with entities on DFATs list of sanctioned entities, including those based in the West Bank. Regular checks are made to ensure that funds are not made available to entities on DFAT’s sanctions list.”

“The Chai Charitable Foundation employs an overseas Compliance Officer who oversees the onboarding, vetting and monitoring of our overseas partners. This includes ensuring that the purposes being advanced align with our mission and status as a registered charity in Australia. We are committed to the external conduct standards issued by the ACNC and the DGR conditions regulated by the ATO.”

The other charities contacted for this story did not respond to requests for comment by deadline.

How DGR Status Works

In Australia, charities endorsed with DGR status can receive tax-deductible donations, an incentive intended to support activities that advance the public good. The ACNC oversees charity registration, while the Australian Taxation Office administers DGR endorsement.

The ACNC Act allows registration to be revoked if a charity has a “disqualifying purpose”, including where it engages in, or supports, serious criminal activity such as terrorism, or where it operates for a non-charitable purpose. Charities can also lose registration if they fail to comply with the External Conduct Standards, which apply to overseas activities.

For charities operating internationally, the External Conduct Standards require that funds and resources be applied consistently with the charity’s stated purpose, that reasonable controls and risk-management processes are in place to prevent misuse, and that charities take reasonable steps to comply with Australian law while operating overseas. This includes compliance with relevant provisions of the Criminal Code, such as those relating to terrorism financing.

Evidence suggesting charitable funds or resources are being used to support foreign military units or settlement-linked activities could justify regulatory scrutiny by the ACNC, particularly where such activities appear to fall outside a charity’s stated purposes or raise risks under Australian criminal law.

Canada’s Crackdown on JNF

Regulatory action against charities funding Israeli settlements is not without precedent. In Canada, multiple charities including Jewish National Fund Canada, have had their charitable status revoked after a tax office audit found “the organisation used donations to help fund infrastructure for the Israeli military, a foreign army, which contravenes Canada’s Tax Code”. JNF Canada was ordered to wind up its operations in Canada and disperse its remaining assets valued at $31 million. The revocation of JNF Canada’s charity status followed decades of grassroots campaigning and activism.

ACNC Response

MWM put detailed questions to the ACNC about its oversight of charities funding the Israeli military and illegal settlements, including whether it considers such funding compatible with charitable purposes and whether any compliance reviews have been opened since October 2023.

The ACNC said it cannot enforce international law unless it has been incorporated into Australian domestic legislation. While the United Nations considers Israeli settlements in occupied territory to be illegal under international law, the regulator said this position “has not, at this stage, been incorporated into domestic Australian law”.

The ACNC said it does not categorise concerns using identifiers such as “funding the IDF or settlement-related activities”, but stated that “between 7 October 2023 and 31 December 2025 it received 896 concerns relating to 88 charities in connection with the Israel/Gaza conflict.”