myTax 2018 Gifts or donations

This section is about gifts or donations you made.

You can claim a deduction for:

• voluntary gifts of $2 or more made to an approved organisation
• a net contribution of more than $150 to an approved organisation for a fund-raising event (see Deductions for contributions relating to fund-raising events for further conditions)
• contributions of $2 or more to  
  • a registered political party
  • an independent candidate in an election for parliament
  • an individual who was an independent member of parliament during 2017–18 or in limited circumstances had been an independent member
• a donation to an approved organisation of shares listed on an approved stock exchange valued at $5,000 or less
• a donation to a private ancillary fund
• entering into a conservation covenant.

Approved organisations include:

• certain funds, organisations or charities which provide help in Australia
• some overseas aid funds
• school building funds
• some environmental or cultural organisations.

Your receipt will usually indicate whether or not you can claim a deduction for the gift. If you are not sure, you can check with the organisation. If you are still not sure, go to abn.business.gov.auExternal Link or phone us to find out whether the organisation is an approved organisation.

Employees who make donations under salary sacrifice arrangements are not entitled to claim an income tax deduction for the donation on their own tax return.

You cannot claim a deduction for a gift or donation if you received something in return (for example, raffle tickets or dinner) except in certain fund-raising events.

If you made one or more donations of $2 or more to bucket collections conducted by an approved organisation for natural disasters such as bushfires, severe storms and flooding, you can claim a tax deduction of up to $10 for the total of those contributions without a receipt.

If you used the web or phone to make a donation over $2, your web receipt or credit card statement is sufficient. If you donated through third parties, such as banks and retail outlets, the receipt they gave you is also sufficient. If you contributed through 'workplace-giving' your payment summary shows the amount you donated.

For more information, see You need to know.

Completing this section

We have pre-filled your tax return with gifts and donations information provided to us.

Check for gifts or donations that are not pre-filled and ensure you add them. Your receipt should show whether your donation is tax-deductible.

If you made donations in a joint name, include only your share.

1. For each gift or donation expense that is not pre-filled in your tax return, select Add and enter information into the corresponding fields.
2. Select Save.
3. Select Save and continue.

See also:

• Taxation Ruling TR 2005/13 Income tax: tax deductible gifts - what is a gift
• Law Administration Practice Statement PS LA 2002/15 Evidence for making of a gift by a taxpayer who participates in a workplace giving program.

You need to know

If you made donations during the year to an approved organisation through your employer's payroll system (known as 'workplace-giving') your payment summary may include the donated amount. If you show this amount at Workplace giving at Salary, wages, allowances, tips, bonuses etc. in the Payment summaries section, myTax will show those amounts at this section.

Your payment summary, or other written statement from your employer showing the donated workplace-giving amount, is sufficient evidence to support your claim. You do not need to have a receipt.

See Rules for certain types of gifts or donations for more information about deductions for:

• gifts of property, such as land and artworks
• contributions to fund-raising events
• gifts of shares valued at $5,000 or less
• contributions and gifts to registered political parties and independent candidates and members.

See Claiming tax deductions for more information about the rules and what records to keep:

• for cultural, environmental and heritage property gifts
• when entering into conservation covenants
• if you choose to spread over five years your deduction for certain types of gifts.

Rules for certain types of gifts or donations

The following information is about different types of gifts or donations for which you may be able to claim a deduction at this section. If you obtained a valuation of a deductible donation of property, you may be able to claim a deduction for the cost of that valuation at Cost of managing tax affairs.

Gifts of property

You can claim a deduction for a gift of property (such as land, artwork or memorabilia) to an eligible organisation if:

• you purchased the property within 12 months of making the gift, or
• you purchased the property more than 12 months before you made the gift and the Commissioner valued it at more than $5,000.

If you purchased the property within 12 months of making the gift, the amount deductible is the market value of the property at the time of the gift or the amount you paid for the property, whichever is less. If you purchased the property more than 12 months before you made the gift and the Commissioner valued it at more than $5,000, the amount deductible is the value of the property as determined by the Commissioner.

You cannot claim a deduction for a gift of property if you did not purchase it (for example, you inherited or won the property) unless the Commissioner has valued it at more than $5,000.

If you have made a gift of property under the cultural gifts program the rules described above do not apply to you. For more information on working out whether you can claim a deduction for a gift under this program, see Donating under the Cultural Gifts Program.

For more information about property valuations, phone 13 28 61 or go to ato.gov.au.

Receiving a benefit

Generally, you cannot claim a deduction for a donation if you received something in return (for example, a raffle ticket, dinner or a reduction in your child's school fees) other than tokens like lapel badges and stickers that promote the organisation. This rule does not apply to certain fund-raising events. For more information, see below.

Deductions for contributions relating to fund-raising events

You can claim a deduction for contributions to approved organisations that relate to fund-raising events where you received a minor benefit for your contribution, provided that:

• the contribution meets certain conditions, and
• the benefit you received does not exceed a specified limit.

A fund-raising event includes a fete, ball, gala show, dinner, performance or similar event.

You can claim a deduction if you made:

• a contribution of money or property to attend or participate in (or for the right to attend or participate in) a fund-raising event, or
• a contribution of money to purchase goods or services at a charitable auction.

Your contribution must meet the following conditions.

• It was made to an approved organisation.
• If it was money, it was more than $150.
• If it was property, you had either
  • purchased it within 12 months of making the contribution, and both the market value on the day of the contribution and the purchase price were more than $150, or
  • owned it for more than 12 months and the Commissioner valued it at more than $5,000
   
• If it was publicly listed shares, the value was more than $150 and less than or equal to $5,000.
• The fund-raising event was held in Australia.
• The GST-inclusive market value of the minor benefit you received for your contribution must have been worth no more than $150 or 20% of the value of the contribution, whichever is less. The receipt from the approved organisation will show the market value of the minor benefit you received.

Your deduction is the value of your contribution that satisfies the conditions set out above less the GST-inclusive market value of the minor benefit you received. Both of these amounts appear on your receipt.

There is no limit to the number of deductions you can claim for successful bids to purchase goods or services at a charitable auction, provided the above conditions are met.

Gifts of shares valued at $5,000 or less

You can claim a deduction for a gift of shares to an approved organisation if:

• the shares were held in a company that was listed on an approved Australian stock exchange on the day the gift was made
• you acquired the shares at least 12 months before making the gift ('acquired' includes purchased, inherited, won or received as a gift or a bonus)
• the parcel of shares had a market value of $5,000 or less on the day you made the gift
• the parcel of shares was valued at $2 or more.

You cannot claim a deduction for shares that are suspended from trading (other than a mere trading halt).

Gifts of shares held in different companies are separate gifts even if given at the same time.

A deduction is also available to you where you contribute the shares in return for a right permitting you or another individual to attend or participate in a particular fund-raising event in Australia. The gift must satisfy the rules for contributions to fund-raising events:

• the market value of the shares on the day they are contributed must be more than $150 but less than or equal to $5,000
• the market value of the right to attend or participate in the fund-raising event must not exceed 20% of the value of the shares or $150, whichever is less.

Be aware that capital gains tax applies when you make a gift of shares.

Contributions and gifts to registered political parties and independent candidates and members

You can claim a deduction for contributions or gifts to registered political parties, independent members of parliament (state or Commonwealth) or independent candidates in an election for parliament. Contributions must be $2 or more. The contribution or gift must be of money or property that you purchased during the 12 months before making the contribution or gift. If it is property, the amount deductible is the market value of the property at the time of the donation or the amount you paid for the property, whichever is less.

If the total of all your contributions and gifts to political parties during the year is greater than $1,500 then the maximum amount you can deduct is $1,500. A separate deduction limit of $1,500 applies if the total of all your contributions and gifts to independent candidates or independent members of parliament for the year exceeds $1,500.

You cannot claim a deduction for a political gift or contribution of $2 or more (including membership fees) to registered political parties, independent candidates and members of an Australian legislature if you make the gift or contribution in the course of carrying on a business.

The contribution must be to a political party that is registered under Commonwealth, state or territory electoral laws.

The contribution to an independent candidate or independent members must be to a candidate for election to, or member of, the Commonwealth Parliament, a state or territory parliament.

An independent candidate is an individual whose candidature in an election for parliament is not endorsed by a registered political party. An independent member is a member of parliament who is not a member of a registered political party.

These myTax 2018 instructions are about gifts or donations you made.