7 Aug 2018
Tax
Donations. What Goes Around Comes Around.
By Brock Lamke | Accountant at DW Mathers & Co.

Hey, do you have a second to talk about… A phrase most of us have heard while walking through a shopping centre. Commonly, this phrase instinctively makes some us walk a little faster with our head down or pretending to talk on the phone to avoid eye contact and conversation.

The phrase is generally coming from someone trying to encourage walk-byers to sign up and donate to their charity of choice.

Did you know that donations over $2 can be tax deductible?

Perhaps next time that charity representative interrupts your shopping centre stroll, it might be worthwhile it to learn about their charity and make a donation. Not only will you be helping those in need, but you might also be helping yourself.

As with all tax deductions you will not receive all the money you donated back in your tax return. You will instead reduce your taxable income, which then in turn reduces the amount of tax you owe depending on which tax bracket you fall into. Most Australians will reduce their tax payable by about 30% of what their deductions are (This is a very rough estimate, and each person is different).

Additionally, the charity must be registered as a Deductible Gift Recipient (‘DGR’) for your donation to count as a tax deductable expense. This stops people donating hundreds of dollars to their own “Grocery Fund”. Furthermore, donations are not tax deductible if you receive a raffle ticket, prize or item in return.

Donate today.

If this blog has encouraged you to help those in need, donate today to the struggling farmers throughout New South Wales. After a 7-year drought, these farmers have reached breaking point. Click here to donate.

If you are an animal lover, I am currently participating in the Pawgust campaign to support the Queensland Guide Dogs in training. I’m showing my support by walking my dog for 30 minutes every day in August and collecting donations for Guide Dogs Queensland. You can donate to my Pawgust Campaign by clicking here.

Every dollar counts.

Always remember to ask for a receipt. If you want any further clarification on what donations are tax deductible feel free to contact us here.

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Daniel Mathers is an authorised representative (1238174) of Hunter Green Pty Ltd (AFSL 225962). Emily Matthews is an authorised representative (1261200) of Hunter Green Pty Ltd (AFSL 225962). Future Key Financial Pty Ltd ACN 608 953 840 is a Corporate Authorised Representative (1238170) of Hunter Green Pty Ltd (AFSL 225962). The information on this website contains general information and does not take into account your personal objectives, financial situation or needs. We recommend that you seek for specific financial advice if you require advice that takes into account your personal circumstances.