Deductions for gifts are claimed by the person or organisation that makes the gift (the donor). A donor can be an individual, company, trust or other type of taxpayer.
How much can be claimed?
The amount of the deduction depends on the type of gift. For gifts of money, it is the amount of the gift. For gifts of property and shares, there are various valuation rules.
A deduction for a gift cannot add to or create a tax loss for the donor. The deduction can reduce a donor’s assessable income to nil in the tax year in which the gift is made, but any excess cannot be claimed in that year or carried forward to a later year as a tax loss. However, donors can elect to spread deductions for certain gifts over a period of up to five years.
What records are required?
Donors should keep records of all their deductible gifts, including:
the date the gift was made
the name of the DGR to which the gift was made
the amount of the gift
a description of the gift if it was property, and
any election to spread the deduction.
When property has been gifted, additional details may need to be recorded.
If a donor has elected to spread the tax deduction for a gift, any variations to the election should also be kept.
Receipts
Donors should ask for receipts from authorised collectors when making gifts to DGRs and keep the receipts with their other tax records. This will help donors prepare their tax returns and in case their claims are checked by us.
DGRs are not required by the income tax law to issue receipts for deductible gifts, but any receipts they issue must specify:
that the receipt is for a gift
the name of the DGR, and
the ABN of the DGR.
For more information on claiming deductions for gifts, see our publication GiftPack (NAT 3132).
Other statements and records
If a donor does not have a receipt, they should keep any other statement or record with details of their gift to assist in the preparation of their tax return and in case claims are checked by us. For example:
If a donor has made a gift to a DGR …
then the donor should retain …
through their employer
a statement from their employer identifying:
each DGR to which a gift was made or, if each DGR cannot be identified in the statement to the donor because of space or printing constraints, a statement that all of the gifts were made to DGRs, and
the total amount of gifts made to the DGRs.
This statement can be given to the donor on:
their PAYG payment summary, or
other written or electronic communication from the employer.
at a bank, credit union or other financial institution
statements such as:
a bank statement showing the amount paid to the DGR
a stamped deposit slip showing the amount paid and the name or account number of the DGR.
using internet banking
a printed copy of their transfer details after making the gift.
by credit card or direct debit to their bank, credit union or other financial institution account
their account records.
at a retail outlet
the shopping docket that contains the details of the gift.
through another organisation – such as a telephone or electricity provider
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