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National

Zakat payment system helping people in need as cost of living rises

Wildan Al Hazmi (right) says he won't stop paying zatak even though the cost of living is rising. (Supplied)

Wildan Al Hazmi, an IT worker at an Islamic school in Melbourne, is ready to celebrate Eid al-Fitr.

His wife has prepared new clothes for their son and special Eid dishes to eat at today's open house.

But behind the hustle and bustle of Eid — a celebration to mark the end of Ramadan — there is one important obligation that Mr Al Hazmi must remember: paying zakat.

"It is an obligation ordered by God, so I'm not afraid to spend money to pay zakat because I believe God will definitely provide," said Mr Al Hazmi, adding that inflation had not deterred him from making the payments.

"In fact, Islam also teaches paying zakat not only helps those who are poor, but also cleanses our wealth and souls."

Mr Al Hazmi, who has lived in Australia for 12 years, said he had been paying zakat to Australia's National Zakat Foundation (NZF) over the last few years as he knows "they will distribute it to help people in need in Australia".

Chief executive officer Ismail Davids said the registered charity, that receives about $2 million in zakat each year, has seen an increase in requests for assistance as the cost of living rises.

"There are a variety of things, but we've seen a spike in the request for rental and food assistance," said Mr Davids, who likened zakat to "a small version of the government's Centrelink system".

What is zakat?

Zakat payments are distributed to people in need and can help cover living costs. (ABC News: Sharon Gordon)

According to Islam, zakat is a compulsory payment that every Muslim should pay through a trusted organisation of their choice.

There are two kinds of zakat payments — one paid out of savings and another special payment, Zakat Al-Fitr, made before Eid to help people pay for celebrations.

In Australia this year Zakat Al-Fitr is $17 per person, up from $15 per person in 2022, because it is calculated using food prices which have increased this year.  

The other zakat payment is similar to tax, but is based on a person's savings instead of their income, said Mr Davids.

Each Muslim who has a certain amount of wealth must donate 2.5 per cent of their savings to a charitable organisation that collects and manages zakat.

Mr Davids said NZF is seeing a trend where people are paying less in zakat because they have less savings.

In some countries, Zakat Al-Fitr is also distributed in the form of staple foods, such as rice. (Supplied: ANTARA)

The money is given to people who fit eight categories. These include the poor, the needy, people who help deliver zakat, refugees or asylum seekers, and people who wish to learn about Islam or are new to Islam and need help.

Mr Davids said zakat was the third pillar of the Islamic belief, that supports the idea that Muslims have to connect with other creations around them.

"How do you do that? By taking care of them and making sure they are secure financially," he said.

"This way, we believe as Muslims, the mercy of God will descend to everyone because we are actually taking care of everyone."

'I can be up on my feet'

Rahmah Wisudo was a zakat recipient when she returned to Australia after leaving a domestic violence situation with almost nothing in 2018.

"I was having difficulty setting up the government help because I had been out of Australia for 12 years," said Ms Wisudo, who had lived in Jordan since 2006 before returning home.

Rahmah Wisudo received zakat when she had no money but now she is financially independent. (Supplied)

"I came back with $35. That's all I had to my name."

A friend then suggested Ms Wisudo seek help from the NZK.

She said she was hesitant at first, but the organisation later gave her financial assistance that she used to pay a bond and settle into a rental property with her two children.

Zulaikha, who did not want to use her real name because of her personal circumstances, was also helped by zakat.

After separating from her husband, she became a single mother at the age of 25, which she found extremely challenging.

"I was going through a lot of depression, I was having panic attacks because you don't want to be that parent that's not able to provide for your kids," she told the ABC.

Zulaikha received payments to help provide for her two children. (Supplied)

Zulaikha was struggling to pay rent, child support and medical expenses for her children.

As a non-citizen, she was also not able to access much in welfare payments from Centrelink.

"It would pay my two weeks rent but then I'd be only left with less than $60 in my account," she said.

"Back then we used to spend $100 and now we are spending double that amount just in a week to be able to put food on the table."

Then, just like Ms Wisudo, a friend suggested she seek help from NZF.

Zulaikha said the help lifted the pressure off her shoulders and she could move forward.

"The zakat has helped a lot to pay for my rent, I can go and get a job, I have money to pay for petrol and physically go to a job interview," Zulaikha said.

"That way, I can be up on my feet, and I don't always have to rely on the zakat funds."

Not losing sight of those in need

Some Muslims with a certain amount of wealth are obliged to pay zakat.  (AAP)

For Ms Wisudo, the help meant she was able to join the workforce.

"I set up my home, I learned how to drive. I enrolled in university and, praise God, I am a registered nurse now."

Both Ms Wisudo's and Zulaikha's experience are exactly what zakat is intended for, said Mr Davids.

"Zakat is designed to say, 'How do we give people money so they can feed themselves so they don't need to come back for a second time?'" he said.

NZF has provided financial help to more than 20,000 "cases" — one case might involve a family of five — since it began operating in 2013.

 
Ismail Davids says requests for assistance are increasing as the cost of living rises. (Supplied)

This year, Ms Wisudo has been able to pay zakat, including Zakat Al-Fitr ahead of Eid.

She said she was very grateful and asked Muslims to obey their obligations.

"I think as a [Muslim] community, a lot of times we lose sight that there are people in need in Australia who can't afford to celebrate," Ms Wisudo said.

"Yes, sending overseas is very good, but we have to look after our own backyard, our own brethren here in Australia.

"The families that are not doing so well, homelessness, mothers who have four or five kids who have left domestic violence situations … I know that once upon a time, that was my situation."

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