Tax deductible donations
Making a big donation at End of Financial Year (EOFY) is not only good for the soul; it is also good for your 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. Use our calculator to estimate your deductions.
How do I claim a tax deduction?
- 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
Enter your donation amount and select your income bracket to estimate your potential savings.
*You may be eligible for a tax deduction for your donation over $2. These figures are based on Australian Taxation Office 2021/22 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 much can I claim?
You can claim the full amount of the donation as long as it is $2 or more.
There is no limit to how much you can claim, however, there is a limit to how much of a donation you can claim in a financial year.
A deduction for a gift can reduce your accessible income to nil in a tax year, but it is not allowed to create or add tax loss. If this is a possibility, the deduction can be spread over several years and be used as a deduction for up to five years.
How do I donate?
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.
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.
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 is tax deductible?
Donations of $2 or more made 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. 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.
- Investment in cancer research
- Support for people affected by cancer
- Prevention programs in the local community