• Further conditions for a tax-deductible contribution

    On this page:

    Approved NFPs

    To be tax deductible, the contribution must be made to a deductible gift recipient (DGR).

    Who can claim?

    A tax deduction for a contribution can only be claimed by an individual taxpayer.

    Approved donation types

    • Money over $150 (at a fundraising auction donors can only claim a deduction for contributions of money).
    • Property purchased during the 12 months before making the contribution and valued at more than $150.
    • Property valued by us at more than $5,000.
    • Shares:
      • acquired at least 12 months before making the contribution
      • valued between $150 and $5,000
      • in a listed public company
      • listed for quotation on the Australian securities exchange.
       

    Claim limits

    For a contributor to claim a tax-deductible contribution, the benefit they receive must be:

    • no more than $150 and,
    • no more than 20% of the value of the contribution.

    See also:

    Eligible events

    For a contributor to claim a tax-deductible contribution, the donation must be for an eligible fundraising event, which is a DGR fundraising event conducted in Australia, including:  

    • fetes, balls, gala shows, dinners, performances and similar events
    • events involving sales of goods if selling these goods is not a normal part of the supplier's business.

    DGRs must run fewer than 15 events of the same type in one financial year for donation to remain tax-deductible.

    Political donations

    Fundraising events held by political parties are ineligible for this concession. Political gifts and contributions are subject to their own rules in order to be deductible.

    See also:

    Example 1 – Claiming a deduction when paying with cash

    Mel pays $420 to attend a charity dinner. The value of the dinner provided was $80. Her deduction is worked out by taking the cost of the ticket and subtracting the value of the dinner: $420 − $80 = $340. It is an allowable deduction because the value of the benefit ($80) is less than $150 and not more than 20% of her contribution (which would be 20% of $420 = $84).

    End of example

     

    Example 2 – When the benefit exceeds 20% of your contribution

    Bernie buys a ticket for $400 to a gala performance organised by a DGR.

    The performance is normally open to the public for $100 a ticket.

    Therefore, the benefit Bernie receives is $100, which is less than the limit of $150. So at this stage: Ticket price $400 − benefit $100 = $300 tax deduction.

    However, the value of the benefit must not be more than 20% of his contribution: 20% of $400 contribution = $80.

    So given the benefit is $100 and 20% of Bernie's contribution is $80, he cannot claim a tax deduction.

    End of example
    Last modified: 25 Jul 2017QC 52961