You can only claim a tax deduction for gifts or donations to organisations that have the status of deductible gift recipients (DGRs).
Deductions for gifts are claimed by the person that makes the gift (the donor).
For you to claim a tax deduction for a gift, it must meet four conditions:
- The gift must be made to a deductible gift recipient. We call entities that are entitled to receive tax deductible gifts ‘deductible gift recipients’ (DGRs).
- The gift must truly be a gift. A gift is voluntary transfer of money or property where you receive no material benefit or advantage.
- The gift must be money or property, which includes financial assets such as shares.
- The gift must comply with any relevant gift conditions. For some DGRs, the income tax law adds extra conditions affecting the types of deductible gifts they can receive.
How much to claim
The amount you can claim depends on the type of gift. For gifts of money, it is the amount of the gift but it must be $2 or more. For gifts of property, there are different rules, depending on the type of property and its value.
A tax deduction for most gifts is claimed in the tax return for the income year in which the gift is made.