Tax Benefits Of Donating To Charity In Australia

The Australian Tax system is not as mean and punitive as it seems. With some knowledge of the tax system, one can take advantage of its provision to reduce the income that is subject to taxation.

With some knowledge of the tax systems, you can take advantage of its provisions to minimize the tax that you are subjected to.

One of the provisions by law is exemption enjoyed for making donations or offering gifts. However, these provisions
are not out rightly direct.

There are a set of conditions and provisions that come with the advantage. This article is about gaining a tax advantage by utilizing the provisions that come with gifts and donations.

Gifts and donations; what qualifies

The Australian law has various parameters used to identify a gift. The fundamental features of a gift are that the property of money must appear to be transferred voluntarily. The transfer should not be because of a contractual obligation or any other condition that there may be (ibid).

The other character of a gift is that it is transferred without the expectation of an advantage that is of material in nature (ibid). A gift is simply a voluntary and gratuitous transfer of an asset.

The same law defines a donation. An effectual donation must meet three aspects to be considered by law to be a donation.

The transfer of asset should be made on contemplation but not when the donor necessarily expects something in return.

Secondly, the donation must be made in the particular subject matter that is relevant to what is conceived by the donor.

Thirdly, the donation must be to the donee of the particular relevant matter.

The claims for tax deduction

Other than meeting the set definitions, the gift or donation must meet four main conditions as set by the Australian tax exemption options. The following are the main four conditions that qualifies the transfer for tax exemption.

• The gift or donation must be directed to the listed DGR (Deductible gift recipients). The link lists the various DGRs that qualify for the tax advantage. So before you make your donations and pursue your claims peruse the list for a rightful recipient
• The gift or donation must meet the definition of a gift or donation as provided above. There should be no material benefit transferred back to you.
• The transferred gifts that enjoy these privileges must strictly be money or property. This means that share and other financial assets are included in the list.
• The gift or donation must be in conformity to any other law that regulates the particular transfer. The income tax laws provisions sometimes affect some Deductible gift recipients. These provisions should be met before exemption.

What to claim

There are provisions that guide the amount to claim after a donation or a gift. If the gift is money, then one can make a tax claim provided the gift is more than $2.

If the gift is a property, then there are other issues involved other than the value of the property. These provisions depend on the type of property that is donated.

Most tax deductable donations are claimed in the tax return for the particular income that you will have made over that year. However, there are provisions that allow you to spread the deductions over a period of five income years.

There are certain donations that you may have been invited to but you do not understand how to take advantage of the tax provisions afforded for them.

If you made a bucket donation towards bushfire or floods, then you can claim your tax deduction for the sum equal or less than $10 but more than $2.

What you will not be able to claim

There are some gifts and donations that do not qualify for tax deductions. According to the Australian law, you do not qualify for the tax deduction when the donation or gift attract personal benefits of the following forms.

• When you benefit in the form of raffle or art tickets
• When you get benefits in the form of chocolates or pens
• When you benefit from a reduced cost of attending a dinner for raising funds even in the event that the donation made exceeds the cost of the dinner
• When you are awarded any membership fees or a reduction in school fees

These benefits may not be material but their beneficiaries are not considered for tax deductions.

Conclusion

You can take advantage of these legal options to pay less tax by making donations or gifts. The income tax that you are subjected to will be reduced incommensurate to the donation and gift that you have given.

However, there are a set of rules that guide the tax deductions that are provided for gifts and donations. Consider the rules when making your donations then claim for the tax advantage.

Benefits of Sponsoring A Child

According to Children International by sponsoring a child living in poverty you can provide them access to some life-changing benefits such as educational support, medical care, job training and life skills.

And according to Inc. sponsoring a child has not only direct benefits for the child in question but also provides some indirect benefits for every business.

Top 5 benefits of sponsoring a child

1. Providing hope and change

There are a number of friendships that start by exchanging letters, both with young children and their carers, who usually give a helping hand if a sponsored child is still too little or young to write.

By the email and mail, you will get to know of another culture by the eyes of a young child.

When sponsoring a child, it means bonding with that child on a certain journey to become the person she or he can beith you.

To Provide an inspiration along the way. To be a part of that certain journey will also inspire you. Today, there are a lot of reasons to sponsor a child.

The most fundamental way is that a lot of children will miss out on paramount opportunities to get away from generational poverty as well as to lead fulfilling lives with the absence of sponsors’ support.

To provide a poor child a brighter future, you can consider child sponsorship for only about $1 per day. This kind of support can make a difference in the world. That is, one child at a time.

You can do this by providing the chance and hope for that young child to prosper. Make a substantial difference and become a sponsor to a child today.

2. Regular, nutritious meals

Every weekend at the center, specifically on Saturdays, children assisted by Compassion are given with both morning and afternoon snacks and lunch. Children who come early at the center also get breakfast.

Delicious and nutritious snacks and meals include fruits, vegetables and meat. These are items their parents cannot usually provide.

Moreover, all the assisted children can get vitamins and medicines, as well as regular dental and medical checkups to make sure they have the best physical development.

3. Going to school and developing skills

There are many children who cannot afford the school supplies, uniform, and other extra fees necessary for them to attend school.

Their poor parents are very grateful for the sponsors’ help. Now, they do not have to be worried about their children getting an education.

Aside from the regular learning activities on Saturdays, many assisted children go to the Compassion center during weekdays to gain from extra tutoring.

As well as homework help. The children also have access to the center’s computer lab and internet.

4. Highly personal donating process

Child sponsorship is making the process of donating very personal and individualized. It aids to create the notion that a certain individual can truly make a difference.

Aside from this, the life of every child can directly become better through a certain person’s financial contribution.

Money from the sponsorship has very real effects for the children concerned, and this provides huge impact and effects on their young lives. The financial support given by the sponsor can empower the child.

Child sponsorship also creates a long-term commitment on the part of the sponsor who donates the money.

This encourages a repeated donation with unceasing benefits for these children, instead of a one-off donation.

5. Brings people together

Child sponsorship can bring people together – people who are from many different ages and cultural backgrounds.

Personal relationships are established despite of long distances. Both internationally and within the same nation.

As steady communication is highly recommended between the sponsor and the child. The long-term relationship that is formed can benefit both them.

A sponsor can be deeply and emotionally affected through sponsoring a child.

Hey Everyone, Dear Family and Friends

 Join us in checking out my new facebook page! we’re trying to build my popularity and get as many likes as we can.  So go to facebook and look up ice cream man from hell exactly like it’s shown below and “like my page”. As always, I appreciate you all and i look forward to hearing from each and every one of you. please tell all your family and friends and let’s have some fun!!!

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Jimmy – AKA The Ice Cream man From Hell

Ice Cream man From Hell – AKA Jim Trotta

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