Tax Deduction for Donations? 2025–26 Guide

Updated for the 2025–26 income year (tax returns lodged from 1 July 2026), with 2026–27 changes noted. Reviewed 19 October 2026.

Can I claim donations on tax? Yes, if you give money or property to an organisation that is a deductible gift recipient (DGR), it's a genuine gift (you get nothing material in return), and you have a record of it.

1. Is there still a $2 minimum?

Not for gifts to DGRs made on or after 1 July 2024. The $2 minimum threshold was removed (the change applies from 1 July 2026 but is backdated to gifts made from 1 July 2024). So for your 2025–26 return you can claim all eligible DGR donations, even amounts under $2. Gifts made before 1 July 2024 still needed to be $2 or more, and the $2 minimum still applies to political donations. You can add up multiple small donations to the same DGR during the year.

2. Check the organisation is a DGR

Not every charity is a DGR. Check the organisation's "deductible gift recipient status" on ABN Lookup before you claim. Many crowdfunding campaigns and social media fundraisers aren't run by DGRs, so those donations aren't deductible.

3. Types of gifts

• Money – claim the amount given.
• Property or shares – different valuation rules apply depending on the type and value.
• Cultural and heritage gifts – special programs apply.

Receiving a token item such as a pin, wristband or sticker doesn't stop you claiming.

4. Bucket donations, workplace giving and receipts

• Bucket collections: for cash donations to a DGR's bucket collection for natural disaster victims, you can claim up to $10 in total for the year without a receipt.
• Workplace giving: your income statement or a written record from your employer is enough.
• Online/phone donations: keep the email receipt or bank/credit card statement.
• Point-of-sale donations (for example, rounding up at the checkout): keep the receipt showing the gift and check the recipient's DGR status.

5. What you can't claim

• Raffle or art union tickets
• Items with an advertised price, such as chocolates, pens, toys or merchandise
• The cost of fundraising dinners (unless the contribution rules apply)
• Membership fees, school fees or payments that give you a benefit
• Gifts to family or friends, salary-sacrificed donations and donations made in a will

6. Political donations

Gifts of $2 or more to registered political parties and independent candidates may be deductible, up to $1,500 a year for parties and $1,500 for independent candidates and members, if made as an individual and not in the course of a business.

7. Large gifts

A gift deduction can't create or add to a tax loss. For gifts of money or property valued at more than $5,000 you can elect to spread the deduction over up to 5 income years – the election must be made before you lodge.

Example (illustrative figures only): Elena gives $1.50 a week through workplace giving for 20 weeks ($30) and makes a $250 online donation to a registered charity. She can claim $280 in 2025–26. These donations don't reduce the new $1,000 standard deduction that starts in 2026–27 – you keep claiming gifts separately.

Ready to lodge? See our tax return service.