The Australian Taxation Office (ATO) is urging taxpayers to make sure they have a record of any donation they are claiming at tax time. Last year nearly two thirds of the charitable claims adjusted, were because the taxpayer could not prove they had made the donation.
The ATO said that around 4.2 million Australians claimed deductions for more than $3.9 billion in gifts and donations to charities and not-for-profits in 2018–19.
Not all gifts and donations are tax deductible. There are four main reasons your donation or gift may not be tax deductible.
The first is giving to an organisation that is not endorsed by the ATO as a deductible gift recipient (DGR). Not all charities and not-for-profits are DGRs. Many crowdfunding campaigns and foreign charities are not DGRs.
The second reason is where you receive or expect to receive a monetary or personal benefit or advantage in return. A raffle ticket or an item from an Op Shop this isn’t considered a tax-deductible gift.
Thirdly, taxpayers fail to keep good records and receipts.
Finally, some people incorrectly claim tax deductions for donations they intend to make in their will or claim for workplace giving that has already reduced the amount of tax paid in each pay period.
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