Questions and answers

Can I spread my deduction across financial years?

You can spread your deduction over a maximum of five income tax years. However the deduction for a gift cannot add to or create a tax loss. The first deduction must begin in the income tax year the gift is made.

You will need to complete an Apportionment Election form:

You are encouraged to speak to a tax professional for advice on claiming deductions for gifts through the program.

Are there limitations on tax deductions?

The Australian Tax Office (ATO) may vary or disallow the deductible amount when:

the gift is donated with conditions that prevent or delay the institution having clear title, custody and control of it, or which involve benefits to the donor, other than the allowable tax concessions, or
you donated the gift within 12 months of acquiring it (other than by inheritance), or the gift was acquired specifically for the purpose of donating it—the allowable deduction in this case will be restricted to the purchase price or the market value, whichever is the lesser amount, or
donated items form part of the trading stock of either a dealer or an artist donating their own work.

What if my application is not assessed by the due date for lodging a tax return?

Despite the department's best efforts, the donation submission process may not always be finalised by your due date for lodging your tax return in the financial year you made the donation.

The Australian Taxation Office has advised that in these circumstances you should submit your tax return by the due date. Then, if necessary, you can request an amendment for the relevant year after your donation has been finalised.

More information about how to request an income tax amendment can be found on the Australian Taxation Office website.