School chaplain providers say a recent government decision is putting their business in jeopardy. 

The Albanese government's decision not to extend tax-deductible gift eligibility for Australia's largest provider of school chaplains has sparked disappointment and concern among providers. 

Scripture Union Australia, the leading supplier of school chaplaincy services, has warned that this decision would likely lead to cuts in these vital services.

Scripture Union Queensland, the largest provider of school chaplains, faced a complaint questioning its tax deductibility status, which allowed the organisation to collect $33 million in donations. 

The complaint argued that the recipient's status depended on furthering religious instruction in government schools, not pastoral care.

To temporarily address the issue, the Morrison government listed the chaplaincy provider for deductible gift status until June 2023 in the 2021-22 budget.

However, in July, Scripture Union Australia disclosed that this status had not been extended, meaning that tax-deductible receipts for donations made after July 1, 2023, would no longer be issued to support chaplains’ in-school hours.

Scripture Union Australia's CEO, Peter James, says there may have to be cutbacks to chaplaincy services as a result of the decision. 

The controversy surrounding the chaplaincy program has also drawn the attention of Queensland Parents for Secular State Schools (QPSSS), who argue that the program's religious nature conflicts with its original purpose of providing pastoral care. 

QPSSS has called for the scrapping of the program and increased funding for state education departments to employ student wellbeing officers solely based on merit.