Charitable tax deduction guide
Give a gift that transforms the lives of children worldwide while enjoying the tax benefits of charitable donations. Learn how to calculate charitable contribution deductions and how to determine if your charitable donations are tax deductible in Australia.
Save the Children is the world’s leading independent organisation for children, with a presence in over 117 countries. In Australia, we have been a trusted name since 1919 and have Deductible Gift Recipient (DGR) status, meaning you can get all the tax benefits of charitable donations over $2 AUD with us.
Find answers below to common questions like “Are charitable gifts tax deductible?” and “What are the tax benefits of charitable donations.?”
Tax benefits of charitable donations explained
When you make a donation of $2 AUD or more to a charity with Deductible Gift Recipient (DGR) status, such as Save the Children Australia, you can claim that amount as a deduction on your annual tax return. This reduces your taxable income, which in turn lowers the amount of tax you owe.
To calculate your charitable contribution deduction, you can use the ATO’s Income Tax Estimator and add the total of all your eligible donations for the financial year to the deduction section. When filling in your tax return, enter this total in Section D9 (Gifts and Donations).
The Australian Taxation Office (ATO) will then subtract this amount from your taxable income, effectively reducing the amount of income on which you are taxed. For instance, if you earn $80,000 and donate $1,000 to a DGR charity, your taxable income would be reduced to $79,000. It’s important to keep receipts for all donations to substantiate your claim.
Frequently asked questions on charitable donations
Are charitable gifts tax deductible?
Yes, all monetary donations of $2 AUD or more to registered DGR charities like Save the Children are tax deductible.
How much can I claim without receipts?
You can claim up to $10 of donations total without a receipt. Anything beyond that requires a receipt. When donating to Save the Children Australia, receipts are provided immediately for one-off gifts and at the end of the financial year for regular donors.
Can I claim a tax deduction for donated goods?
No, donations must be money, property, or financial assets to be tax deductible. Additional rules apply to deductions for donated property and financial assets, read more on the ATO’s website or check with your tax agent to be sure you’re getting the most out of your donation.
What’s the maximum I can claim?
There is no maximum limit for charity tax deductions; you can generally claim the full amount of your donation if it is $2 AUD or more. However, donations can at most reduce your taxable income to zero and cannot create or add to a tax loss, though if necessary, you can spread your donation over several years (up to five years).
Why donate to Save the Children?
Your donations support crucial initiatives such as health, education, child protection, and emergency response, ensuring that every child has the chance to thrive. By donating to Save the Children, you’re giving children a better future.
Enjoy tax benefits while helping children in need
Make a real difference in the life of a child today and choose to make a one-off donation or become a regular giver. Through your continued generosity, you can help ensure that no child fears for their life, wherever they are in the world.