17.3 C
Wednesday, October 4, 2023
HomeAustraliaHow to get the most money back on tax return: Claiming donations...

How to get the most money back on tax return: Claiming donations in Australia rules


Millions of Aussies Will Lose Thousands This Tax Time Over Confusing Rule: Here’s What You Need To Know

  • Half of all working Australians do not add charitable donations to their tax returns
  • Experts say it’s one of the main areas where people don’t recoup enough

According to experts, millions of hard-working Australians are missing out on tax time, and they have themselves to blame.

Every day, according to tax experts, Aussies fail to claim everything they are entitled to to maximize their returns.

Nearly half of the population will skip the charitable tax deduction sections when completing their returns — despite being able to claim donations over $2.

Research conducted by CARE Australia revealed that four in five Australians understand they can claim their donations – but it doesn’t translate at tax time.

There are several limits when it comes to charitable donations – and the ATO has strict guidelines.

Millions of hard-working Australians will miss out on tax time, experts say, and they’re to blame (stock image)

You cannot claim donations that you benefit from, such as charity raffles, purchasing tickets to charity galas or purchasing charity merchandise.

The team at CARE Australia said it is disheartening to see so many Australians missing out on tax refunds – as many decide not to make so many cash donations.


Do you claim your charitable donations?

  • Yes! 0 votes
  • No. 1 votes
  • I don’t make any that are claimable. 0 votes

The data suggests that Australians are good at supporting medical fundraisers but are falling behind global efforts to raise money for poverty.

‘Addressing the global poverty crisis only becomes more urgent as we face simultaneous crises; global economic inflation, climate emergencies, the COVID-19 pandemic, war and a global famine.

“As humanitarian aid workers, we deliver lifesaving and essential services on a shoestring budget, but we cannot afford to let aid slip if we want to make change and support the most at-risk people in these crises,” said Peter Walton, CEO of CARE Australia said.

“Tackling this problem is not something we are going to solve overnight, and this sector needs the support of many more Australians to beat global poverty,” said Walton.

What are the rules for charitable deductions?


The amount that you can deduct depends on the type of gift

Cash gifts – you can claim the amount of the gift, but it must be $2 or more.

Donations of real estate or shares – there are different rules depending on the type and value of the property

Donations under the Heritage and Cultural programs – there are special circumstances where donations may also be deductible

If you receive a symbolic item for your donation, you can still claim a deduction. Token items are things of no material value used to promote the DGR, such as lapel pins, wristbands, and stickers

WHAT CAN’T I claim

You cannot claim gifts or donations that provide you with a personal benefit, such as

Lottery or art union tickets – for example an RSL Art Union prize home

Items such as chocolates, mugs, key chains, hats, or toys with an advertised price

The cost of attending fundraising dinners (you may be eligible for a contribution deduction if the cost of the event exceeded the small benefit provided as part of the event)

Club membership payments to school building funds in exchange for a benefit or benefit – for example, as an alternative to an increase in tuition fees or placement on a waiting list payments

If you have an agreement with the recipient that the payments will be used to benefit your gifts to family and friends for whatever reason

Donations made in the context of a salary sacrifice scheme

Donations based on a will

Source: ATO

‘Living in poverty is already a daily struggle for survival. And when disaster strikes, that battle gets even bigger. Donations from Australians are essential to helping those living in disaster-prone regions survive, while also delivering their own financial benefit by lowering donors’ taxable income.”

In 2022, Mark Chapman, Director Of Tax Communications, H&R Block explained that Australians often miss tax time because they don’t know what to claim

Major expenses include travel expenses and other work expenses such as laundry and uniform costs.

The author of what'snew2day.com is dedicated to keeping you up-to-date on the latest news and information.

Latest stories