Charitable Donations and Tax Deductions

Throughout the year we talk with client about their life goals and aspirations to ensure we are financially creating a plan that is meaningful. This does involve tax strategies and deductions to manage down their taxable income.

Commonly, events like selling a property or shares and making a profit can add to your personal income for the financial year. This in turn can carry with it a surprise in the form of a delayed tax bill when you lodge your tax return the following year.

What types of additional spending can help with creating deductions for tax purposes.


Considering contributing to superannuation and claiming a personal tax deduction, there are limits on what you can contribute, both annual and sometimes looking back into previous years to use any limits you didn’t utilise in previous years, there are conditions on this, Talk to your adviser.

Work related expenses like work related vehicle costs, uniforms and study relating to work.

Making a donation to a charity

Making a contribution to a registered charity group has important tax benefits for you or your business. Donating to charity allows you to lower your taxable income – without taking a pay cut.

to make a tax deductible donation, or how to clarify the eligibility of your chosen charity?

What is a tax deductible donation?

A donation is considered tax deductible when an amount of $2 or more is donated to an eligible charity or non-profit organisation. Your eligible donations are subtracted from your taxable income, decreasing the portion of your income that can be taxed in a given financial year.

The donation must be a gift or contribution to the eligible charity or nonprofit organisation, with no benefits provided to you as part of the exchange. For example, donations made in exchange for raffle tickets, event admission and other charity fundraisers are ineligible for tax deduction.

The recipient of the donation must also be a ‘Deductible Gift Recipient’ (DGR), listed in the charity register with the Australian Charities and Not-for-profits Commission (ACNC).

What types of donations are tax deductible?

Your donation to charity is tax deductible regardless of the type of donation made. The donation must be an amount greater than $2, and could take the form of a:

  • One-off donation
  • Regular monthly donation
  • Donation in support of a specific appeal,
  • Corporate sponsorship
  • Donation in lieu of a gift

Remember, as a business or individual, you cannot receive benefits in exchange for your contribution. 

We have seen these strategies in action with some of our clients and have their permission to share their experiences.