Australia gifts and donations deductions
This explanation covers gifts and donations deductions in Australia, using the published government rules and their stated scope.
On this page
- Deductible gift recipients
- A deductible gift recipient (DGR) is an organisation or fund endorsed by the ATO or listed by name in tax law to receive tax-deductible gifts. Not all charities are DGRs.ATO gifts and donations
- The minimum threshold changed
- The ATO states that from 1 July 2026 the minimum A$2 threshold for gifts and donations to DGRs was removed. The change is backdated to eligible gifts and donations made from 1 July 2024; it does not apply to political donations.ATO gifts and donations
Deductible gift recipients
A deductible gift recipient (DGR) is an organisation or fund endorsed by the ATO or listed by name in tax law to receive tax-deductible gifts. Not all charities are DGRs. ATO gifts and donations (opens in a new tab).
The recipient must have DGR status at the time of the gift. The gift must be voluntary, without a material benefit or advantage in return, and comply with any relevant gift conditions. ATO gifts and donations (opens in a new tab).
The minimum threshold changed
The ATO states that from 1 July 2026 the minimum A$2 threshold for gifts and donations to DGRs was removed. The change is backdated to eligible gifts and donations made from 1 July 2024; it does not apply to political donations. ATO gifts and donations (opens in a new tab).
For gifts before 1 July 2024, a deduction is available only for gifts or donations valued at A$2 or more. For eligible gifts on or after that date, amounts below A$2 can also be claimed. ATO gifts and donations (opens in a new tab).
Gift types and material benefits
For gifts of money, the deduction is the amount of the gift. Property and shares have different rules depending on their type and value. ATO gifts and donations (opens in a new tab).
Token items with no material value, such as promotional lapel pins, wristbands and stickers, do not prevent a deduction. Raffle tickets and purchases of advertised-price goods provide a personal benefit and cannot be claimed as gifts. ATO gifts and donations (opens in a new tab).
Records and limited exceptions
A deduction requires a record of the donation, such as a receipt. Workplace giving can be evidenced by an income statement, payment summary or written employer record. ATO gifts and donations (opens in a new tab).
Cash donations to a DGR bucket collection for natural disaster victims can be claimed without a receipt up to a total of A$10 in one income year. Donations above A$10 need a receipt. ATO gifts and donations (opens in a new tab).
Timing and deduction limits
Gifts are generally claimed in the income year they are made. Certain gifts can be spread over up to 5 income years by an election made before lodging the return for the year of the gift. ATO gifts and donations (opens in a new tab).
Gifts and donations deductions cannot add to or create a tax loss. Any excess cannot be claimed in that income year. ATO gifts and donations (opens in a new tab).
This general explanation provides no personal eligibility decision, tax calculation or recommendation.