Tax Rebate on Charity Donations

At tax return time in Australia, July to October, many people will be checking to see what they donated to charities during the previous financial year.

Most donations of over $2 will be able to be set of in the tax return, as a deductible expense against taxable income.

This means that an average taxpayer, who donates $100, and has a top tax rate of 30%, is able to claim a tax deduction of $30 in regard to their charity donation. The effect of this is that the Charity gets the full $100 paid for by the donors net $70 and $30 from the overall Australian taxpayers pool of Income Tax received by the ATO.

Higher paid individuals, who may be on the 45% tax bracket, would get $45 rebated from their $100 donation, leaving then with a net cost of $55.

A few words of caution:

  • Your donation must be $2 or more.
  • You must have a receipt.
  • The charity must be endorsed as a Deductible Gift Recipient (DGR) by the ATO otherwise your deduction may be disallowed.

For people who donate large amounts, a number use the Charities Aid Foundation (CAF) to manage their giving, more details at:

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Through CAF’s operations in Australia during 2008-09, more than $AU20 million was granted to recognised Deductible Gift Recipient charitable and not-for-profit organisations across Australia and South East Asia.

Even larger donors, with $500,000+ available for donations can set up a Private Ancillary Fund. This allows the fund to earn tax free income, but must distribute at least 5% of the fund each year to recognised organisations.
Details at:

Other options for Donations, but with no tax rebates, include raffles such as these, where the ticket buyer is contributing to a charity, but also getting a chance of winning a house.

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