Tax deductible donations

Many people make a big donation at End of Financial Year (EOFY) not only because it is good for the soul but it is also good for the hip pocket/bank balance. Donations can reduce an individual’s taxable income and money donated in June can result in money back in July.

Read on to find out how you and Cancer Council NSW can benefit this financial year from your tax deductible donation and use our calculator to estimate your deductions. 

What are tax deductions?

Tax deductions are a way to reduce your taxable income and the amount of tax that you pay.

While most deductions are expenses directly related to earning your income, gifts and donations can also be considered tax deductions.

What kind of gifts and donations are tax deductible?

Donations of $2 or more made directly to an organisation that is defined by the Australian Tax Office as a Deductible Gift Recipient (DGR) can be considered tax deductible donations. Cancer Council NSW is a DGR. Click here for more information.

If you receive something in exchange for the donation (eg. a raffle ticket or pen) then it doesn’t qualify as a tax deduction. This is because the Tax Office defines this as a transaction where you receive a good or service in return for the money donated. However receiving tokens like lapel badges and stickers that promote the organisation are acceptable and still qualify as a tax deduction.

Why make a tax deductible donation to Cancer Council?

Cancer Council is the only organisation in Australia that covers every aspect of every cancer. Each year we invest almost $15 million to support cancer research.  

97-percentCancer Council NSW is 97% community funded. We rely on donations from the community to provide:

– Investment into cancer research

– Support for people affected by cancer

– Prevention programs in the local community

Does claiming a tax deduction on a donation affect the amount of money Cancer Council NSW receives?

No. Any amount received back to donors comes from the Australian Tax Office as part of the tax refund process.

How much can be claimed?

The full amount of the donation can be claimed as long as it is $2 or more.

There is no limit to how much can be claimed, however there is a limit to how much of a donation can be claimed in a financial year.

A deduction for a gift can reduce the donor’s accessible income to nil in a tax year, but it is not allowed create or add to a tax loss for the donor. If this is a possibility, the deduction can be spread over several years and be used as a deduction for up to five years.

Can companies donate?

Absolutely. Just as individuals can claim donations as a tax deduction, businesses can claim gifts to charity – as long as it is a cash gift and the charity is a deductible gift recipient. 

More information is available on the Australia Taxation Office website. 

How do I claim? 

Make a donation to Cancer Council NSW and keep the receipt.

Gather all of your tax documentation including tax file number, PAYG payment summary and receipts.

Lodge your tax return online, with a paper tax return or with a tax agent.

Pay close attention to section D9 Gifts or donations of the return – this is where you should record your donations.

Calculate your potential tax benefit

Simply enter your donation amount and select your income bracket to estimate your potential savings.

Donation Amount

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Income

Savings

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*You may be eligible for a tax deduction for your donation over $2. These figures are based on Australian Taxation Office 2015/16 figures (excluding the Medicare levy) according to your individual circumstances. The amounts shown in the calculator above are a guide only, you should always seek independent financial advice.

How do I donate?

Click here for more information on the different ways you can donate to Cancer Council NSW or click on the button below. 

Donate now

 

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