Jesus was quite clear on the question of tax. Noting the Roman coin bearing the emperor’s graven image, he advised the Jews to render unto Caesar the things that are Caesar’s.
Fast forward to contemporary Australia and there’s precious little rendering going on.
Nominating the purpose of “advancing religion” is one of the ways not-for-profits can gain tax-exempt status. In doing so, faith groups also avoid many state taxes, stamp duties and local government charges.
Tax-free status is granted on the basis that advancing religion is unequivocally beneficial to the public.