Australians are known for their generosity, with millions given to charities every year. But when tax time rolls around, many people are surprised to learn that not every donation is deductible. Some gifts reduce your taxable income, while others, like raffle tickets or fundraising dinners, don’t qualify at all.
If you want to maximise both your impact and your refund, it’s important to know the difference. Understanding the rules will help you give with confidence, avoid missed opportunities, and ensure your donations are claimed correctly.
What counts as deductible?
- Donations of $2 or more to organisations registered as Deductible Gift Recipients (DGRs).
- Gifts made in money or property (such as shares or goods) to approved charities.
- Workplace giving programs, where your employer deducts donations from your pay.
What doesn’t count?
- Raffles, fundraising dinners, or auctions (as you receive something in return).
- Gifts to individuals or overseas charities not registered with the ATO.
- Donations without a proper receipt.
How to claim correctly
- Always keep your receipts.
- Make sure the charity is registered as a DGR.
- Claim the deduction in your individual tax return under “Gifts and Donations.”
Charitable giving is a wonderful way to make a difference, and when done correctly, it can also provide you with a tax benefit.
