Tax season is almost upon us! At this time of the year, we often field questions about deductibility of various expenses and donations. Here’s a common asked one – School Building Fund Levy.
Gifts to a school building fund will qualify for a tax deduction where the school building fund has been endorsed as a Deductible Gift Recipient (DGR) by the Australian Taxation Office (ATO) and no material benefit is received by the donor. To be tax deductible, gifts must have the following characteristics:
- They are made voluntarily.
- They do not provide a material benefit to the donor.
- They essentially arise from benefaction.
Gifts to a school building fund will not be tax deductible where the following material benefits are received by the donor:
- A reduction in school fees.
- The grant of scholarships to nominated students.
- Raffle tickets.
- Tickets to functions.
What You Need To Do
- Prior to making a donation, confirm with the school that the school building fund is a DGR.
- Keep all receipts for contributions to the school building fund.
- Ensure that no material benefits were received by yourself or your family when making the donation.
Unsure whether a donation which you made is tax deductible? Send us all your receipts when requesting for your tax return to be prepared. Our tax accountants will check and advise on tax deductibility. Contact us for assistance with your tax returns today!