Tax deductions for donations

There are a few basic tips to make a difference through the tax system.

Regardless of your political alignment, many Australians don’t believe that the Federal Government is spending appropriately to achieve the best outcomes.

So we have a simple 5 point guide to maximising donations and minimising your tax!

1. Make sure the donation is made to an Australian registered Charity. To get a deduction for your donation, the charity must be registered as a DGR (deductible gift recipient)
   You can find a list of DGR’s here

2. If you are part of a family, ALWAYS make the donation in the name of the highest income earner. It’s most effective at the highest marginal rates.

3. If you have an employer with a donation matching program, USE IT. Your $2000 cash donation could be worth $4000 to the charity if you register with your employer program.

4. Remember donations to political parties are capped $1,500

5. If you receive something in kind (i.e, a raffle ticket, a calendar) it’s usually a contribution, and it’s non-deductible. You have to give without any direct benefit to you being received.

So remember, if your taxable income is $200,000, you are paying .45c plus 2c in Medicare levy for every dollar. Donating $10,000 only costs you $5,300. It’s costs the government $4,700, and that climate change organisation has $10,000. (Or maybe $20,000 if your employer doesn’t cap matching donations……)