Most Australians are aware that donations to charitable organisations over $2 are tax deductible – with the latest research by humanitarian aid not-for-profit agency CARE Australia revealing 80% of taxpayers are aware of this legislative perk.
Despite this knowledge, roughly 50% of surveyed citizens admitted to not donating to charities despite the obvious financial benefits of doing so.
In short, this means that half of Australia’s taxpayers are missing out on extra money in their tax returns – with their generosity meaning they forgo the chance to put more money into their own pocket, rather than the pockets of charitable organisations.
CARE Australia is encouraging Australians to be generous by giving to international causes, with the bonus of being able to benefit from tax deductions when submitting returns, in the hope of stimulating even more giving.
CARE CEO Peter Walton stated in the previous financial year, Australians were able to lend a helping hand to those affected by poverty or war, totalling 1.44 million people from around the globe.
“These results could be effectively doubled if more Australians considered donating at tax time, which really shows how much more we can do,” Mr Walton said.
Roughly 50 per cent of the population have reported plans to donate to charities or not-for-profits before June 30th in order to make a difference and make use of the financial advantages. According to figures from the Australian Taxation Office, about 4.2 million people in 2019–20 declared deductions towards gifts as well as donations which totaled up to $3.7 billion.
