How making donations can save you tax
Do you love doing a little good in this world?
Donation tax credits are claimed as an individual rather than as part of your business and are their own tax return type. But by going through this process, you can get one third of what you donated, back as a tax credit!
What you can claim
You can claim tax credits for donations of $5 or more when the donation:
was to an approved charity or organisation
did not provide any direct benefit to you or your family
was not given, bequeathed, done or appointed by will or made by way of a full or partial debt forgiveness.
You can also claim donations to schools (not to be confused with tuition fees, attendance dues or the like)
The donation does need to be to an approved charity; you can search up the options here - there are over 600 charities to choose from!
Example
You donate $300 to your favourite registered charity in the financial year (from 1 April to 31 March) - you can get $100 back which will either reduce your tax bill, or be refunded into your nominated bank account!