Understand tax implications for tax donations
Donating to charitable organisations is a great way to give back to the community while also receiving potential tax benefits. However, not all donations are tax-deductible. Understanding the rules around donation deductions can help ensure you maximise your tax return while supporting causes that matter to you.
Donations you can claim.
To claim a tax deduction for a donation, there are some conditions that must be met.
- The donation must be made to a Deductible Gift Recipient (DGR). A DGR is an organisation that has been officially registered with the Australian Taxation Office (ATO) to receive tax-deductible donations.
- The donation must be a gift, meaning you do not receive anything in return. This means payments for things like raffle tickets, event tickets, or crowdfunding campaigns such as GoFundMe are not tax-deductible.
- The donation must be a monetary contribution of $2.00 or more, or a gift of property under certain conditions.
- If the donation is non-monetary, such as shares or goods, there may be specific valuation rules that apply.
- You must keep records and receipts as proof of your donation to claim it in your tax return.
How to claim your deductions.
If your donation meets these eligibility requirements, you can claim it as a tax deduction when lodging your tax return. Simply include the donation amount in your tax return under the deductions section. And remember — you must have a receipt from the registered charity or organisation as the ATO may request proof of the contribution.
Donations you can’t claim.
While many charitable contributions can be deducted, there are specific types of payments that do not qualify, including:
- Donations made to individuals or crowdfunding campaigns that are not registered as DGRs.
- Payments for event tickets, such as charity dinners or galas.
- Purchases of raffle tickets or items at charity auctions.
- Gifts that provide you with a personal benefit in return.
We’re here to help.
Understanding tax rules can be complex, but Ascent Accountants are here to help. If you’re unsure whether your donation qualifies or need assistance with tax planning, we can help ensure you’re maximising your deductions while staying compliant with ATO regulations.
For more information on claiming tax deductions for donations, contact us!
Need help with your accounting?
June is zooming by! Here’s another handy checklist for business owners—let’s get you sorted for EOFY and tick off those to-dos.
EOFY is almost here. Are you ready? Now’s the time to get your finances in order and maximise your tax return. Our latest guide covers top tax deductions, super contributions & co-contributions, SMSF must-dos, PAYG instalment tips and a 30 June checklist.
Whether you're a first-time landlord or managing multiple properties, understanding what you can claim at tax time can make a big difference to your bottom line. In our latest blog, we break down the most common (and often overlooked) deductions.
Buying and selling property rarely lines up perfectly. The logistics of it all can be incredibly stressful. If you’ve found the perfect next home but haven’t sold your current one yet, a bridging loan can make your move easier, without having to wait on your current property sale. What is a bridging loan? A bridging loan is a short-term loan that gives you the funds to buy a new property before your current property has sold. It’s designed to bridge the gap between buying and selling. These loans are generally interest-only and are typically offered for up to 12 months, giving you time to sell and settle on your current home while already owning the next one. When would I need a bridging loan? You might consider bridging finance if: You’ve found your next home but haven’t yet sold your current one. You want to avoid renting or moving twice between sales. You want more time to prepare your home for market to get the best sale price. You're building a new home while still living in your existing one. How does it work? Peak Debt: The lender combines your current mortgage, the cost of the new property (including stamp duty and legal fees), and any interest (if it’s being capitalised). This total is known as your Peak Debt. Interest Only: During the bridging period, you’ll typically pay interest only — or the interest may be capitalised (meaning it’s added to your loan rather than paid upfront). Sell Your Property: Once you sell your existing home, the sale proceeds are used to reduce your Peak Debt. End Debt: The remaining balance becomes your End Debt, which then continues as a standard mortgage. An example of a bridging loan. Your current home loan = $200,000 New home = $800,000 Total bridging loan (Peak Debt) = $1,000,000 After selling your home for $600,000, that amount is used to pay down your loan Remaining loan (End Debt) = $400,000 Things to consider. Like any major financial decision, it’s important to understand all the moving parts before you commit. Time pressure: You typically have 6–12 months to sell. If you don’t sell in time, the lender may step in to sell the property and/or charge default interest. This is an extra interest rate that a lender charges when you fail to meet your loan obligations — in this case, not selling your property within the agreed timeframe. Interest costs: If interest is capitalised, it means you're not making repayments during the loan period, so the interest gets added to the loan balance instead of being paid separately. This means your loan grows each month. Making even small repayments can help keep this under control. Equity & serviceability: Lenders will assess how much equity you have and whether you can manage the loan during the bridging period. Loan-to-value ratio: If your End Debt ends up being more than 80% of the new property’s value, you may have to pay Lenders Mortgage Insurance (LMI). Existing loan setup: If your current lender doesn’t offer bridging loans, refinancing may be required — sometimes triggering break fees if your existing loan is fixed. This means you may have to pay a penalty if you end a fixed-rate home loan early (before the agreed term is up). Is a bridging loan right for you? That’s the big question. Bridging finance can offer flexibility and peace of mind, helping you move forward with confidence rather than being held back by uncertain sale timing. But it’s not without risk or cost — so it’s vital to understand the structure, timeframe, and repayment expectations. If you’re considering your next property move and want tailored advice on whether bridging finance suits your situation, talk to the team at Ascent Property Co. or Ascent Accountants. We can also put you in touch with finance brokers to discuss what is best for you.
That work perk might be costing you more than you think… Fringe Benefits Tax (FBT) is charged at a whopping 47% — the same as the top personal tax rate. That means lower salary or fewer benefits. So, while salary packaging can save tax, in many cases it ends up costing you more.
If you’re expecting a higher income this financial year, now is the time to act. We’ve put together 9 Smart Tax Planning Tips that could save you thousands — but they only work before 30 June.
