Skip to main content
Child SponsorshipDonate now

Tax-deductible donations

Every donation of $2 or more to The Smith Family is tax deductible in Australia. As The Smith Family is endorsed as a Deductible Gift Recipient (DGR), your donation can reduce your taxable income while helping children experiencing disadvantage succeed at school.
school children outside in the playground sitting together

Are donations to The Smith Family tax deductible?

Yes. All donations of $2 or more to The Smith Family are tax deductible under Australian law because we are a DGR. You can claim eligible donations in your annual tax return You should keep a record of your donation, such as a copy of your receipt.

What makes a donation tax deductible in Australia?

A donation to The Smith Family (as a Deductible Gift Recipient) is tax deductible when: 

  1. The donation is $2 or more 
  2. It is given voluntarily without any material benefit or advantage in return 

Examples of donations that are generally tax deductible (where no material benefit is received): 

Examples that are generally not tax deductible: 

  • Raffle tickets 
  • Event tickets
  • Purchasing merchandise

How much can I claim on my tax return for donations?

You can claim the full value of any eligible donation of $2 or more. There is no fixed dollar cap on tax deductible donations, but deductions cannot reduce your taxable income below zero or create a tax loss. 

For example (in basic terms): 

  • If your taxable income is $60,000 and you donate $1,000, your taxable income becomes $59,000. 
  • Your tax saving depends on your marginal tax rate. 

Higher-income earners may receive a greater tax benefit because deductions reduce income taxed at higher rates.

Is there a limit to how much I can claim in tax deductible donations?

There is no upper dollar limit for tax deductible donations in Australia. However: 

  • You cannot claim more than your taxable income 
  • These Deductions cannot create or increase a tax loss 
  • In some cases, large donations can be spread over up to five financial years 

This spreading option can apply to substantial gifts and may provide strategic tax planning opportunities. 

We recommend consulting a registered tax agent or financial adviser for personal financial advice. 

Information is also available on the following website: www.ato.gov.au

Are monthly donations tax deductible?

Yes. Monthly donations to The Smith Family are tax deductible (once the $2 threshold is exceeded). 

At the end of each financial year, we provide: 

  • A consolidated annual receipt 
  • A breakdown of total donations

Regular giving provides sustained educational support while remaining fully eligible as a tax deductible gift.

Can businesses claim charitable donations?

Yes. Businesses can claim tax deductible donations made to a DGR. 

Corporate donations may: 

  • Be claimed as a deduction 
  • Form part of ESG (Environmental, Social and Governance) reporting 
  • Support community engagement initiatives 

The value of the deduction to the business may vary depending on accounting treatment, so businesses should seek tailored advice.

Donation Tax Deduction Calculator

Use our donation tax calculator to estimate the potential saving from your tax-deductible gift.

The calculator:

  • Uses Australian marginal tax rates
  • Estimates how your taxable income changes
  • Calculates approximate tax savings
  • Helps you understand the impact of your donation

This tool estimates how much a tax-deductible donation to a registered Deductible Gift Recipient (DGR) may reduce your taxable income under Australian tax law.

 

Estimated Tax Saving: $0.00

Estimated Cost to You: $0.00

Donate now
Donations of $2 or more to The Smith Family may be tax deductible in Australia. The figures shown in this calculator are estimates only and are based on current Australian resident individual income tax rates. They exclude the Medicare Levy (2%) and do not take into account your personal circumstances. The Smith Family does not provide tax or financial advice. You should consider your individual situation and seek independent advice where appropriate. This calculator has been developed using publicly available Australian Tax Office (ATO) tax rate information. It is provided for general information purposes only.
the four steps to make a tax deductible donation

Four steps to make a tax deductible donation

Step 1 – Select a charity that has DGR status

Check for DGR status and find out what impact your gift will have.
You can check this by using the Australian Business Register.

Step 2 – Make your donation

It’s often easiest to donate online or by phone.

Step 3 – Keep your receipt

You should keep all records of tax deductible gifts.

Step 4 – Claim your tax deduction

Claim your donation when you file your next tax return from 1 July.

Frequently asked questions about tax deductible donations