Earn
Can I claim my loose change charitable donation?
There’s no doubt it’s been a tough 12 months for many Australians – and chances are you’ve dropped some loose change into a bucket to support one charity or another – but without any form of receipt, are these types of donations tax deductible?
Can I claim my loose change charitable donation?
There’s no doubt it’s been a tough 12 months for many Australians – and chances are you’ve dropped some loose change into a bucket to support one charity or another – but without any form of receipt, are these types of donations tax deductible?
According to the Australian Taxation Office, for a gift or donation to be deductible, it must be given to an organisation endorsed as a deductible gift recipient (DGR).
“If you made one or more donations of $2 or more to bucket collections conducted by a DGR, you can claim a tax deduction of up to $10 for the total of those contributions for the year without a receipt,” the ATO’s assistant commissioner, Karen Foat, said.
A DGR is a not-for-profit organisation – and includes some charities – that is entitled to receive gifts that are tax deductible.
Notable examples of DGRs that you may have donated to over the past year include: NSW Rural Fire Service, The Trustee for Queensland Volunteer Rural Fire Brigades Donation Fund, Queensland State Emergency Service, Australian Red Cross Society, the Trustee for the Salvation Army, and Cancer Council Victoria.
A comprehensive list of DGRs can be found here.
It’s worth noting that not all charities or crowdfunding campaigns are endorsed DGRs. This means Australians should confirm the DGR status of an organisation they have donated to by checking on the organisation’s ABN before claiming a deduction.
But for larger donations, Ms Foat has instructed that “it is important to keep receipts to support your claim for all other donations beyond this $10 annual limit”.
“Over half of the claims we disallow is because taxpayers haven’t kept a record to support their claim,” the assistant commissioner revealed.
“Charities do good work all over Australia, so we want to make supporting the charity of your choice simple,” she added.
“But remember, you can’t claim a deduction for purchasing tickets in a charity raffle or where you receive any goods or services in return for your donation.”
Did you enjoy this article? You might also be interested in:
- How to make 2020 tax time even easier
- 9 things you can and can't claim tax on this year
- 10 jobs to emerge even stronger from COVID-19
RELATED ARTICLES
About the author
About the author
Tax refund
The ATO will be focusing on these four issues at tax time
The tax office has indicated it will be scrutinising areas where taxpayers are known to make mistakes. Read more
Tax refund
More than half of Aussies get stressed at tax time, survey finds
Many taxpayers feel that they may be missing out on deductions in their tax returns. Read more
Tax refund
Engage or face firmer action, ATO warns taxpayers with unpaid debts
The tax office is offering support and assistance to those with overdue debts. Read more
Tax refund
How to prepare for your tax return
While the end of the financial year is still a couple of months away, you can take action now to help maximise your tax return. Read more
Tax refund
What issues will be on the ATO’s radar this year?
H&R Block has outlined two main areas that the tax office is expected to focus on. Read more
Tax refund
How does the expanded low and middle income tax offset work?
Millions of taxpayers will receive hundreds of dollars more in their tax return this year. Read more
Tax refund
Why 90% of taxpayers could face a higher tax bill next financial year
A tax offset for over 10 million Aussies may not be extended in next month’s budget. Read more
Tax refund
PM ponders extension of low and middle income tax offset
Scott Morrison has hinted that a popular tax-saving measure may return in 2022. Read more
Tax refund
The ATO will be focusing on these four issues at tax time
The tax office has indicated it will be scrutinising areas where taxpayers are known to make mistakes. Read more
Tax refund
More than half of Aussies get stressed at tax time, survey finds
Many taxpayers feel that they may be missing out on deductions in their tax returns. Read more
Tax refund
Engage or face firmer action, ATO warns taxpayers with unpaid debts
The tax office is offering support and assistance to those with overdue debts. Read more
Tax refund
How to prepare for your tax return
While the end of the financial year is still a couple of months away, you can take action now to help maximise your tax return. Read more
Tax refund
What issues will be on the ATO’s radar this year?
H&R Block has outlined two main areas that the tax office is expected to focus on. Read more
Tax refund
How does the expanded low and middle income tax offset work?
Millions of taxpayers will receive hundreds of dollars more in their tax return this year. Read more
Tax refund
Why 90% of taxpayers could face a higher tax bill next financial year
A tax offset for over 10 million Aussies may not be extended in next month’s budget. Read more
Tax refund
PM ponders extension of low and middle income tax offset
Scott Morrison has hinted that a popular tax-saving measure may return in 2022. Read more
