How to Claim Tax Deductions for Charitable Gifts and Donations in Australia

When is a charitable donation tax deductible?

For the usual charitable donation, four points matter. The donation must be made to a deductible gift recipient (DGR), it must genuinely be a gift, it must consist of money or property, and it must satisfy any additional conditions applying to that gift or recipient.

A genuine gift involves voluntarily transferring money or property without receiving or expecting a material benefit or advantage in return. For an ordinary gift of money to an eligible DGR, the amount must generally be $2 or more.

Division 30 of the Income Tax Assessment Act 1997 contains the statutory framework for deductible gifts and contributions, including the recipients, gift types, deductible amounts and special conditions that can apply.

How do you check whether a charity is a DGR?

Do not assume a donation is deductible simply because an organisation describes itself as a charity or operates for a charitable purpose. The Australian Taxation Office states that you can only claim the ordinary gifts and donations deduction for donations to organisations with the required DGR status.

You can check the organisation on the Australian Government's ABN Lookup. Its record shows whether an entity is endorsed as a DGR and, where applicable, the fund, authority or institution for which DGR endorsement applies.

This distinction is important because there are two forms of DGR endorsement. An organisation may be endorsed as a DGR in its own right, or it may operate a particular fund, authority or institution that has DGR status. In the second situation, only qualifying gifts to that endorsed fund, authority or institution are deductible.

How much can you claim for a money donation?

For an eligible gift of money, you can generally claim the amount you gave, provided the monetary gift meets the applicable $2 minimum and the other deduction conditions are satisfied.

Workplace giving can also qualify. The ATO treats donations made through an employer's payroll system as deductible where the relevant requirements are met, including where your total gifts to the DGR for the income year amount to at least $2.

If a donation was made jointly with another person, include only your own share of the deductible donation in your tax return.

Can you claim raffle tickets, dinners or purchases from a charity?

Usually not as an ordinary gift. If you receive a material benefit in return for the payment, the transaction is not simply a gift. The ATO gives raffle tickets and a dinner as examples of payments that generally cannot be claimed as ordinary gifts or donations.

There are separate rules for certain eligible fundraising-event contributions. One current ATO category covers a net contribution of more than $150 for a qualifying fundraising event, subject to additional statutory conditions. Do not treat every charity ticket, auction purchase or fundraising payment as deductible without checking those rules.

What if you donate property or shares instead of money?

Different rules apply to gifts of property and shares. Division 30 covers specified categories, including property purchased during the 12 months before the gift, certain trading stock, property valued by the Commissioner at more than $5,000 and certain shares in listed public companies.

For example, the ATO states that property purchased and donated to a DGR within 12 months can qualify where the applicable requirements are met and the value of the gift is at least $2. The deductible amount can depend on the type of property and the statutory valuation rules rather than simply the amount you believe the item is worth.

Special rules also apply to certain listed shares, cultural and heritage gifts, conservation covenants and other less common donation types. If your donation is not a straightforward cash gift, determine the applicable gift category before entering an amount in your return.

Do you need a receipt for every donation?

You should keep records supporting tax-deductible gifts, donations and contributions. A DGR receipt is the clearest evidence, but the ATO recognises other records in specified circumstances.

If a DGR issues a receipt for a deductible gift, the tax law requires the receipt to state the name of the relevant fund, authority or institution, the DGR's ABN if it has one, and that the receipt is for a gift.

For an online or telephone donation over $2, the ATO states that a web receipt or credit card statement can be sufficient evidence. A receipt issued when donating through a third party such as a bank or retail outlet can also be acceptable. For workplace giving, your income statement, payment summary or other written employer record showing the donated amount can support the claim.

There is a limited exception for certain small bucket donations. The ATO allows a total deduction of up to $10 for qualifying bucket donations for an income year without a receipt. A receipt is required to claim more than $10 under that concession.

Where do you enter donations in myTax?

You claim eligible gifts and donations as deductions in your individual income tax return. In myTax, the ATO places gifts and donations in the deductions area for gifts, donations, investment-related deductions and the cost of managing tax affairs.

myTax may show information that has been pre-filled from records available to the ATO, including workplace-giving information. You remain responsible for checking the information and adding eligible gifts or donations that have not appeared automatically.

If you are preparing your Australian return online, the separate Helpydo guide to lodging an individual tax return with myTax explains the wider return process.

What donations cannot you claim?

Common mistakes include claiming a payment simply because it went to a charity, claiming a payment where you received a material benefit, or donating through a crowdfunding campaign without checking whether the recipient has DGR status.

The ATO specifically warns that not all charities are DGRs. It also notes that many crowdfunding arrangements are not operated by DGRs. The recipient's actual DGR status, and in some cases the status of the specific fund receiving the money, must be checked.

You also cannot convert the value of your time or voluntary work into an ordinary monetary donation deduction merely because you volunteered for a charity. The deductible-gift rules concern qualifying gifts of money or property and other specifically recognised gifts or contributions.

What if you already lodged your tax return without the donation?

If you have already lodged your tax return and later identify an eligible donation that should have been included, do not lodge a second tax return for the same income year. The ATO provides an amendment process for correcting a lodged return.

You can follow the Helpydo procedure for amending an Australian tax return after it has been lodged.

A final check before you claim

Before entering a donation deduction, confirm three things: the recipient or relevant fund had the required DGR status, your payment meets the rules for a deductible gift or contribution, and you have appropriate evidence for the amount claimed.

For a straightforward cash donation, this usually means checking the DGR on ABN Lookup, confirming you gave at least $2 without receiving a material benefit in return, and retaining the receipt or another acceptable record. Property, shares, fundraising-event contributions and other special gifts should be checked against their specific rules before you claim them.