September 23, 2025

Deductible Donations and Gifts: The 2025 Aussie Tax Guide

Published: 23rd September 2025 Gotax Publishing

Thinking about giving back in 2025? Good on ya. But here’s the catch — not every donation gives you tax perks. The ATO plays hardball when it comes to deductible donations, and unless you follow their rules, your good deed might not trim your tax bill.

This guide breaks down what you can claim, what you can’t, and the classic mistakes people make when trying to be generous and tax-smart at the same time.

What Makes a Donation Deductible?

For a donation or gift to count as a tax deduction in Australia, it needs to tick four boxes:

Must go to a DGR (Deductible Gift Recipient): Not every charity is a DGR. Check the register before giving.
Must be a true gift: You give voluntarily and get nothing valuable in return.
Must be money or property: This includes shares, listed securities, and some other assets.
Must meet special rules: Some DGRs and assets have extra conditions.

If you buy a raffle ticket, fundraising dinner, or a box of Cadbury choccies — sorry champ, no deduction.

Donation Examples That Trip People Up

Example 1: You donate $100 to the Cancer Council (a DGR). You get nothing in return except warm fuzzies. ✔ Deductible.
Example 2: You buy a $10 box of fundraising chocolates. You eat the evidence. ✘ Not deductible.
Example 3: You tip $20 into a bucket for bushfire relief at Woolies. If it’s an approved disaster appeal and over $2, you can claim up to $10 without a receipt. ✔ Deductible.
Example 4: You donate BHP shares worth $5,000 to a DGR. ✔ Deductible, but valuation rules apply.

Common Mistakes Aussies Make

Donating to non-DGR charities (think random GoFundMe or overseas groups).
Forgetting receipts (no proof = no claim, except for small bucket donations).
Claiming when you got a benefit back (raffles, dinners, merch).
Not realising only the person on the receipt can claim.
Thinking overseas charities automatically qualify (they don’t, unless DGR-registered here).

Implications for Your Tax Return

You can only claim donations in the same year you make them.
Donations reduce your taxable income, but they don’t give you a refund if you didn’t pay tax in the first place.
Businesses, trusts, and individuals can claim — as long as the donation goes to a DGR.
Property, crypto, and shares can be deductible, but rules get tricky.

Gotax Online Q&As on Donations

Can I claim a deduction for every charity donation?

No. Only donations to ATO-approved DGRs are deductible.

What is a DGR?

It’s a Deductible Gift Recipient — a charity approved by the tax office to accept tax-deductible donations.

Do I always need a receipt?

Yes, unless it’s a bucket donation under $10 for an approved disaster appeal.

Can I claim raffle tickets?

No. You’re getting a chance to win, which kills the deduction.

What about school fundraising chocolates?

Nope, the sugar rush cancels out the deduction.

Can I claim supermarket checkout donations?

Yes, if it’s to a DGR and you get a receipt.

Can I claim GoFundMe donations?

Only if the campaign is run by a registered DGR.

What if I donate property or shares?

You can claim, but special valuation rules apply.

Can I claim donations made in my will?

No. Only donations you personally make while alive.

Can I claim a club membership?

No. Memberships don’t qualify as gifts.

Are school building funds deductible?

Yes, but only if you don’t get a benefit (like guaranteed enrolment).

Can I claim gifts to family or friends?

Nope. Only gifts to DGRs.

Can I claim salary-sacrificed donations?

No, your employer claims the benefit.

Are overseas charities deductible?

Only if they’re registered as a DGR in Australia.

Can I carry forward unused donation deductions?

Sometimes, for property gifts — but not for cash donations.

Can businesses claim donations?

Yes. Same rules: must be to a DGR.

Can I claim for donating my time or services?

No. Generosity of spirit doesn’t count for tax.

What if I get a thank-you gift?

If it has value (like a mug or T-shirt), it’s not deductible.

Can trusts make deductible donations?

Yes, if the deed allows and the gift is to a DGR.

Can I split a donation with my partner?

Only the person named on the receipt can claim.

What's Next

Donating is a great Aussie tradition. But when it comes to tax:

Check for DGR status.
Keep your receipts.
Remember: if you got something back, it’s not deductible.

Do it right, and your generosity helps others and trims your tax bill.

Want to keep it simple? Gotax is your tax return wingman. We know exactly where to plug in your deductible donations, so you don’t miss a dollar.

Start your tax return now: www.gotax.com.au/guest-user
Rental property returns: https://www.gotax.com.au/rental-property-tax-return
Small business & ABN returns: https://www.gotax.com.au/abn-tax-return

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