Pre-Tax Donations for Payroll Giving
14 August 2002 at 1:08 pm
Charity Aid Foundation (CAF) Australia says a recent decision from the Australian Taxation Office will give employees throughout Australia the opportunity to give to their favourite charity through their payroll, receiving an immediate tax benefit.
Assistant Commissioner of Taxation, Megan Yong gazetted the ruling on the 2nd July 2002 allowing a variation to the amount of withholding payment.
This means for the first time Australians can give ‘pre-tax’ to charities registered as deductible gift recipients and receive their tax deduction up front. This avoids the need for individuals to wait until the end of the tax year and, in fact, to remember to claim their deduction.
CAF’s Executive Director, Duncan Power says his organisation among others has lobbied extensively to achieve this ruling and it is encouraged that the government has responded so positively.
He says the changes present a new and exciting opportunity for corporate Australia to support the community involvement of their employees.
CAF Australia is an international not-for-profit organisation and leader in payroll giving with 15 years experience in over 10 countries. CAF provides programs and services to assist both the corporate and not-for-profit sectors with the development of community involvement.