Millions of Aussies Will Lose Thousands This Tax Time Over Confusing Rule: Here’s What You Need To Know
- Half of all working Australians do not add charitable donations to their tax returns
- Experts say it’s one of the main areas where people don’t recoup enough
According to experts, millions of hard-working Australians are missing out on tax time, and they have themselves to blame.
Every day, according to tax experts, Aussies fail to claim everything they are entitled to to maximize their returns.
Nearly half of the population will skip the charitable tax deduction sections when completing their returns — despite being able to claim donations over $2.
Research conducted by CARE Australia revealed that four in five Australians understand they can claim their donations – but it doesn’t translate at tax time.
There are several limits when it comes to charitable donations – and the ATO has strict guidelines.
Millions of hard-working Australians will miss out on tax time, experts say, and they’re to blame (stock image)
You cannot claim donations that you benefit from, such as charity raffles, purchasing tickets to charity galas or purchasing charity merchandise.
The team at CARE Australia said it is disheartening to see so many Australians missing out on tax refunds – as many decide not to make so many cash donations.
The data suggests that Australians are good at supporting medical fundraisers but are falling behind global efforts to raise money for poverty.
‘Addressing the global poverty crisis only becomes more urgent as we face simultaneous crises; global economic inflation, climate emergencies, the COVID-19 pandemic, war and a global famine.
“As humanitarian aid workers, we deliver lifesaving and essential services on a shoestring budget, but we cannot afford to let aid slip if we want to make change and support the most at-risk people in these crises,” said Peter Walton, CEO of CARE Australia said.
“Tackling this problem is not something we are going to solve overnight, and this sector needs the support of many more Australians to beat global poverty,” said Walton.
‘Living in poverty is already a daily struggle for survival. And when disaster strikes, that battle gets even bigger. Donations from Australians are essential to helping those living in disaster-prone regions survive, while also delivering their own financial benefit by lowering donors’ taxable income.”
In 2022, Mark Chapman, Director Of Tax Communications, H&R Block explained that Australians often miss tax time because they don’t know what to claim
Major expenses include travel expenses and other work expenses such as laundry and uniform costs.