Donations and their Deductibility

Monday, 24 June 2019   

Donations and their Deductibility

With tax time fast approaching, all tax payers are looking for ways to minimise their tax bill. One fantastic way to do this (and do your part for the community) is with donations. Yes, donations are tax deductible! But be careful who and what you donate to, there are a couple of things to look out for. Firstly, the recipient of the donation must be a deductible gift recipient (DGR). These organisations are listed with the ATO as organisations that can receive tax deductible gifts. If you are unsure, this can be checked online athttps://www.abn.business.gov.au/Tools/DgrListing. Simply type in their name, ABN or ACN.

Secondly, in order for it to be a deduction in your tax return, you cannot receive any material benefit or advantage. Unfortunately, this rules out the various prize home competitions and the like as donations (e,g RSL Art Union).

Keep those records! It is extremely important to keep the receipts of donations you make during the year. Donations above $2 are tax deductible with a receipt to the correct organisations. This includes political parties. Donations up to $1,500 can be claimed for payments to registered political parties.

If you are unsure of the recipient and the status of the donations, feel free to contact our office to discuss it further on 07 5536 2288.