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.