Donations and Deductions

Donation and Deduction in Tax Return

As the festive season approaches. Think of the less fortunate, lend a helping hand make a donation. There are many organisations who are deductible gift recipients (DGR). Therefore they are entitled to receive tax deductible gifts.

Conditions and Claims

To claim a donation back on your tax return, it must meet the following conditions:

  • The gift must be made to a DGR.
  • It must be a gift and not a voluntary transfer of money or property.
  • The gift must be money or property. Please note that financial assets such as shares are included
  • The gift must comply with any relevant gift conditions. For some DGRs, the income tax law adds extra conditions affecting types of deductible gifts they can receive.

Now how to know if the recipient is a DGR? Simply visit ABN Look-up: Deductible gift recipientsExternal Link for details.

Always remember that the minimum amount of gift or donation has to be $2.00 or more. In case of bushfire and floods, donations of $2 or more to bucket collections conducted by approved organisation for victims can be claimed without a receipt as long as the donation is less than $10.00. To claim back a donation higher than 10$ you will require a receipt.

Also there is a common misconception that you can claim back raffle tickets purchased for donation purposes. This is incorrect, you can not claim back raffle or art union tickets as well as membership fees.

United Business Services encourages every one to dig in deep and make a donation this festive season. Put a smile on the ones who are less fortunate, make a change. For further details do not hesitate to contact us on +61 2 9534 8744 or visit our contact us page. You can also contact us via our facebook page.




The above article has been taken from Gifts and donations on the ATO website.