Articles
Individual Philanthropy
Tax claims for individual donations
The tax incentives introduced by the Government in recent years have provided an environment conducive to encouraging higher levels of giving in Australia. The Queensland University of Technology's analysis of the tax office statistics for 2002‑2003 confirms a consistent trend in increased claims of tax deductions for donations to charities and other public funds over a period of 11 years. Since 1993, claims have risen from $439 million to $959 million, with an increase of 600,000 taxpayers claiming gift deductions.
Claims by Australian individual taxpayers in 2000-2001 rose a staggering 16.74% over the previous year. This represents the single largest percentage increase since records have been kept (for 20 years). This increase was due to changes to the income tax law in May 2000 allowing tax deductibility for appreciated gifts of property worth more than $5,000 and to the introduction of a new category of private charitable fund (prescribed private funds), the latter evidenced by a 240% increase in claims by taxpayers earning in excess of $1 million per year.
Giving levels have remained high in 2001-2002 and 2002-2003, rising by a further 4-5% each year. Read the QUT Centre of Philanthropy and Nonprofit Studies' Current Issues Information Sheet 2005/7.
When the estimated amounts donated by Australians where no tax deduction is claimed, and the value of volunteer hours, are added to the taxation figures, we can be proud of our increasing generosity and willingness to work together to make our communities more prosperous and dynamic.
http://www.partnerships.gov.au/philanthropy/philanthropy_individual.shtml