Donations: How to Claim Gifts and Contributions on Your 2025 Tax Return

What Counts as a Tax Deductible Donation? A donation is tax deductible if you give money or property to a charity or organisation that’s officially approved by the government to receive tax deductible donations. Not every charity or cause qualifies, so you need to check before you claim. Review our Gotax guide to assist you.

You can claim a tax deduction for:

• Cash donations of $2 or more to an approved charity or fund is tax deductible. 
• Gifts of property (like shares, artwork, or land) to an approved charity is tax deductible.
• Donations made through workplace giving programs (if your employer takes it from your pay and gives you a statement)
• Bucket donations (like when you chuck a fiver in a tin for an approved charity)
• Gifts under the Heritage and Cultural programs (special rules apply)
• Supermarket round-up donations at checkout, if the donation goes to an approved charity and your receipt says it’s tax deductible

What’s Not Tax Deductible?

• Donations to organisations that aren’t approved to receive tax deductible donations (check before you give)
• Raffle tickets, fundraising dinners, or charity auctions (unless you get nothing of material value in return)
• Donations to overseas charities (unless they’re approved in Australia)
• Donations where you get a material benefit (like a dinner, prize, or merchandise)
• Crowdfunding campaigns (unless the organiser is an approved charity)

How to Check if Your Donation is Tax Deductible Not sure if your donation is tax deductible? Use the ABN Lookup tool online. Just search for the charity’s name and look for “Deductible Gift Recipient” status. Here’s the link:
https://abr.business.gov.au/ (Search for the charity and check if they’re approved to receive tax deductible donations.)

What to Look for on Your Donation Receipt Every receipt for a tax deductible donation should clearly say it’s a tax deductible donation. If it doesn’t, ask the charity for a proper receipt. The receipt should also show:

• The name of the charity or fund
• Their ABN (Australian Business Number)
• The date and amount of your donation
• A statement that your donation is tax deductible

If you don’t see this info, double-check before you claim it on your tax return.

Supermarket Round-Up Donations: Are They Deductible? If you round up your grocery bill at the checkout to donate to a charity, you can claim it as a tax deduction—but only if:

• The supermarket is collecting for an approved charity (check using the ABN Lookup link)
• Your receipt shows the donation amount, the name of the charity, and a note that it’s tax deductible (sometimes this is printed on your shopping receipt)
• If you don’t get a clear receipt, ask at the service desk or check the supermarket’s website for details about their donation program

How to claim:

• Add up all your eligible round-up donations for the year
• Keep your receipts (or a summary from your supermarket account if they provide one)
• Claim the total amount in the “Gifts or donations” section of your tax return

Pro tip:
If you use a rewards card or supermarket app, you might be able to download a summary of your donations at tax time—makes life easier!

When Can You Claim? You claim the deduction in the year you make the donation. For large donations of property or shares, you can choose to spread the deduction over up to five years (special rules apply).

Examples

Example 1:

You donate $50 to the Cancer Council in August 2024. You claim $50 in your 2025 tax return.

Example 2:
You give $10 to a bucket collection for a bushfire appeal run by an approved charity. You can claim it, even if you don’t get a receipt (for donations up to $10).

Example 3:
You round up your bill by $2 every week at Woolies, and your receipt says it’s a tax deductible donation to an approved charity. At the end of the year, you’ve donated $104. You can claim the full $104 as a deduction.

Common Donations Mistakes

• Donating to non-approved charities and trying to claim it
• Claiming the full amount for charity dinners or auctions (only the part over the value of what you get is deductible, and often none of it is)
• Claiming donations made by someone else (only the person who made the donation can claim)
• Claiming in the wrong year

Common Donations Misconceptions

• “All charity donations are deductible.” Nope—only to approved charities.
• “I can claim my time or services donated.” Sorry, only money or property counts.
• “Crowdfunding is deductible.” Not unless the organiser is an approved charity.

Often Overlooked Donation Tax Deductions

• Small cash donations to bucket collections (keep a note, even if you don’t get a receipt)
• Gifts of shares or property (special rules, but can be valuable)
• Donations made through workplace giving (check your payslip or employer statement)
• Supermarket round-up donations (if you keep your receipts)

Record-Keeping Hacks

• Always get a receipt from the charity (except for bucket donations under $10)
• Keep a list of all your donations for the year (spreadsheet, app, or even a photo of receipts)
• For property or shares, keep records of the transfer and valuation
• For supermarket round-ups, keep your shopping receipts or download a summary from your rewards account

ATO Red Flags & Audit Triggers

• Claiming large donations without receipts
• Claiming donations to non-approved charities
• Claiming for charity events where you got a benefit (like a dinner or prize)

Troubleshooting Tricky Donations Situations

Q: I donated to a friend’s GoFundMe—can I claim it? A: Only if the campaign is run by an approved charity. Most aren’t.

Q: I donated jointly with my partner—who claims it? A: Whoever’s name is on the receipt. If both, you can split it.

Q: I got a lapel pin or sticker—can I still claim? A: Yes, if it’s a token item of no material value.

Q: I donated shares—how do I claim? A: You’ll need a valuation. Special rules apply, so keep all paperwork.

Q: What if I lose my receipt? A: For bucket donations under $10, you don’t need one. For others, try to get a copy from the charity.

Q: Can I claim for donating my time or skills? A: No, only money or property.

Q: Can I claim for buying charity merchandise? A: No, if you get something of value (like a t-shirt or mug), it’s not deductible.

Pro Tips

• Always check before you donate—just because it’s a good cause doesn’t mean it’s tax deductible
• If you donate online, keep the email receipt and make sure it says your donation is tax deductible
• For big donations, consider spreading the deduction over several years
• If you donate through work, ask payroll for a summary at year-end
• If you’re a regular giver, set up a folder in your email or on your phone just for donation receipts

Real-World Scenarios

• You donate $20 a month to an approved charity via direct debit—claim the total for the year as a tax deduction
• You buy a ticket to a charity ball—can’t claim unless you get nothing of value in return
• You donate old shares to an approved charity—claim the market value (with proper records)
• You round up your groceries at the supermarket and keep your receipts—claim the total if it’s tax deductible

Action Time

Don’t let your generosity go unrewarded! Use Gotax to claim every cent of your tax deductible donations and gifts on your tax return. We make it easy, fast, and stress-free—with real humans ready to help. Give smarter, claim bigger—choose Gotax!