Suitable for: Everyone
Tax Difficulty: Easy
Time to read: 2-3 minutes
Tax Focus: Income Tax Returns
If you donate gifts (including money) to certain organisations during the financial year, you may be entitled to claim a deduction for its value on your tax return. In this Help Centre article, we’ll explain the criteria a donation has to meet in order for it to be claimable, and how you can record donations on your Airtax tax return.
In order for a gift to be tax deductible, it must satisfy each of the below requirements:
- It must be made to a “deductible gift recipient (DGR). You can look up whether the organisation you donated to is a DGR here.
- It must truly be a gift: a voluntary transfer of money or property where you do not receive, nor expect to receive anything in return.
- It must be either money or property (including financial assets such as shares).
- It must comply with any relevant gift conditions
NOTE: If you make a monetary donation to a DGR, your receipt should clearly indicate whether it is tax deductible or not.
Examples of donations you can claim:
- Bucket donations:
- $2+ donations that are made to bucket collections conducted by an approved DGR can be claimed on your tax return - up to a maximum of $10.
- Political party/independent candidate donations:
- Up to $1500 may be claimed on the tax return for donations and gifts made to political parties and independent candidates.
- Worthy causes
- Donate $25 to friend who is doing Movember, which is an approved charity. Remember the organisation must be a DGR.
What you can’t claim:
You can’t claim gifts or donations where you receive benefit in return, including:
- Raffle or art union tickets
- Items such as chocolate and pens
- Cost of attending fundraiser dinners - even if the cost exceeds the value of the dinner
- Membership fees
- Payments to school building funds made - for example, as an alternative to an increase in school fees
- Any payments where there is an established understanding that the payment being made will inevitably result in any future benefit to you.
Keeping records of donations you make:
In order to claim a donation on your tax return, you should keep a written record of the donation. When you donate to a DGR, they should issue you with a receipt which clearly displays the following necessary information:
- The name of the organisation the donation has been made to
- The DGR’s ABN (if it has one)
- A statement that the receipt is for a gift.
What you’ve learned:
- Types of gifts that are claimable on the tax return
- Some restrictions around what can and can’t be claimed
- The importance of not receiving any benefit in return for the gift
- How to record the donation on your Airtax tax return.