mattwnz: I realise it is in the legislation but what is the whole reasoning that led to churches etc being tax free. I am guessing it is because they did a lot of free work on the community. But it's this sort of thing still relevant in the 21st century? Especially how many are run like businesses with CEOs etc and paid staff

Yeah, I believe that's the reasoning too. It was probably sensible when the vast majority of people were members of some organised religion or other, and the churches did play a significant role in looking after the poor and needy. But nowadays, neither of those things is true.

I say tax the churches, and pay them for the good works that they do.

I suspect the Sallies would get a fair amount of their money back, whereas the Catholics would disappear their profits overseas.