The complete guide to tax-deductible giving in Australia (2026)
Tax-deductible giving in Australia rewards generosity with a real financial benefit: every eligible dollar you donate to a registered charity reduces your taxable income, lowering the tax you owe when you lodge your return. As the end of the financial year approaches, understanding how the system works helps you give smarter.
This guide covers everything you need to know for the 2025–26 financial year — what tax-deductible means, which charities qualify, how to claim your donation correctly, and the types of giving that count.
Please note: this is general information only and not financial advice. For advice specific to your circumstances, speak to a registered tax agent or the ATO.
Make a tax-deductible donation to The Fred Hollows Foundation today.
What does tax-deductible mean for a charitable donation?
A tax-deductible donation is one that can be subtracted from your taxable income when you lodge your Australian tax return. It does not mean you receive the money back as a refund. It means the ATO calculates your tax on a lower income figure, so you owe less.
How the deduction works
Australia uses a progressive tax system — different portions of your income are taxed at different rates. The benefit of a tax deduction is calculated at your marginal (top) tax rate: the rate that applies to the last dollar of your income.
For example: if your income falls in the 30% marginal tax bracket (which applies to income between $45,001 and $135,000 in 2025–26), a $1,000 donation to The Fred Hollows Foundation reduces your taxable income by $1,000 and saves you $300 in tax. The Foundation receives the full $1,000. You pay $300 less to the ATO. At the 37% bracket, the same $1,000 donation saves $370.
The higher your marginal rate, the greater the after-tax value of your giving — but the benefit applies to every Australian taxpayer who donates to an eligible charity.
Which charities are tax deductible in Australia?
Not all charities qualify. In Australia, a donation is only tax deductible if it is made to an organisation endorsed by the ATO as a Deductible Gift Recipient (DGR). Registration with the Australian Charities and Not-for-profits Commission (ACNC) is a separate requirement — a charity can be ACNC-registered and do important work without being a DGR.
For a full explanation of what DGR status means and how to check it, see What Is a DGR Charity?
How to verify DGR status
The two official tools are ABN Lookup (abr.business.gov.au) and the ACNC Charity Register (acnc.gov.au). Both databases show whether an organisation has active DGR endorsement. Always check before lodging a deduction you cannot support with a receipt from a confirmed DGR.
The Fred Hollows Foundation's DGR status
The Fred Hollows Foundation is endorsed by the ATO as a Deductible Gift Recipient — specifically as an Overseas Aid Fund under Item 1 of section 30-15 of the Income Tax Assessment Act 1997. The Foundation is also recognised as a Health Promotion Charity. You can verify this at any time on ABN Lookup using ABN 46 070 556 642.
When you donate to The Fred Hollows Foundation, your contribution is fully tax deductible. We issue a tax receipt for every donation automatically, so you have everything you need at tax time.
Your contribution also goes directly to work that changes lives. 75% of donated funds go directly to eye health programs and advocacy, helping restore sight and independence for people who would otherwise go without care. The Foundation works across more than 25 countries in Africa, Asia, the Pacific, and Australia.
Is my donation fully tax deductible, and how much can I claim?
In most cases, yes — the full amount of your genuine donation to a DGR charity is tax deductible in Australia.
To qualify, your donation must:
- Be made to a DGR-endorsed organisation.
- Be a genuine gift — you must not receive a material benefit in return (raffle tickets, merchandise, event entry, or similar do not count).
- Be $2 or more. The ATO requires a minimum of $2 per monetary gift. There is no upper limit — you can claim every eligible dollar you donate in a financial year.
- Be supported by a receipt or other written record from the DGR.
Donations that do not qualify include contributions made under salary sacrifice arrangements, gifts left in a will, crowdfunding campaigns to unregistered causes, and anything purchased in exchange for a benefit (raffle tickets, gala dinner entries, charity merchandise).
How to claim a charitable donation on your tax return
To claim a donation, you need a valid receipt from the DGR, and you enter the total under D9 — Gifts or Donations in the Deductions section of your myTax return. If you use a registered tax agent, provide your receipts or annual giving statement and your agent handles the rest.
The process is the same whether you give once, monthly, or through workplace giving — the difference is in the documentation. Monthly donors receive an annual giving statement that replaces individual receipts. Workplace donors use their employer payment summary. The $2 minimum per gift applies throughout.
EOFY deadline: when does your donation need to be made?
To claim a donation in your 2025–26 tax return, the transaction must be completed on or before 30 June 2026. The ATO uses the date the payment was processed — not the date you lodge your return — to determine which financial year it falls in.
Donations made on or after 1 July 2026 are still tax deductible but will be claimed in the 2026–27 return instead. If you are planning an EOFY contribution, allow a few days for processing — especially for bank transfers and workplace giving arrangements.
The standard deadline to lodge your tax return is 31 October. If you use a registered tax agent, the deadline is typically extended to May of the following year.
For more on EOFY timing and payment methods, see EOFY Giving Before 30 June 2026.
The different types of tax-deductible giving
Supporters of The Fred Hollows Foundation can give in several ways, each with slightly different tax treatment.
Workplace giving
Workplace giving and salary sacrifice are two distinct arrangements treated differently at tax time.
Workplace giving: You authorise your employer to deduct donations from your after-tax salary and forward them to the charity. Your gross salary is unchanged. Because you are donating from income you have already received, you claim the deduction yourself in D9 on your personal return. Your employer’s payment summary (income statement) shows the total donated for the year — this is your documentation.
Salary sacrifice: Your employer makes the donation as part of your remuneration package, reducing your gross salary before tax is applied. Because your taxable income is already lower, you do not claim a separate deduction in D9 — doing so would amount to claiming the same benefit twice.
If you are unsure which arrangement applies to you, check your employment contract or ask your payroll team before lodging.
For more on workplace giving, see Tax-Deductible Workplace and Corporate Giving.
Regular monthly giving
Monthly contributions are tax deductible. Each payment is treated as a separate eligible gift. You do not need to track individual transactions — The Fred Hollows Foundation provides an annual giving statement showing the full financial year total. Enter the annual total in D9 when you lodge.
Once-off giving
One-off donations to The Fred Hollows Foundation are fully tax deductible, provided they meet the standard eligibility criteria: the donation is $2 or more, made to a DGR, and supported by a receipt. This includes memorial donations.
Gift in Will
Leaving a gift to The Fred Hollows Foundation in your Will creates a lasting impact for future generations. Charitable bequests are not tax deductible in the same way as donations made during your lifetime — they do not reduce your personal taxable income. However, there may be estate-related tax considerations depending on your circumstances. Speak to a solicitor or estate planning adviser for guidance specific to your situation.
Why donate to The Fred Hollows Foundation?
Giving to The Fred Hollows Foundation is about more than tax benefits. It is about supporting a mission to restore sight and independence to people living with avoidable blindness around the world.
Avoidable blindness is one of the most solvable problems in global health. A cataract surgery can cost as little as $25 and restores full sight in under 20 minutes. When a person’s sight is restored, they can return to work, support their family, and participate fully in their community. The impact is immediate, lasting, and measurable.
Since The Foundation was established over 30 years ago, the results speak for themselves:
- 8,102,299 people screened.
- 562,213 eye operations and treatments performed.
- 178,638 pairs of glasses distributed.
- 66,852 people trained, including community health workers, teachers, and surgeons.
Our team delivers medication, surgery, education, equipment, and training to build sustainable eye health systems in communities that need them most. We work alongside governments, global organisations, and local communities to overcome the barriers that prevent people in lower-income areas from accessing care.
Learn more about why you should consider donating to The Foundation.
Frequently Asked Questions
IS MY DONATION TO THE FRED HOLLOWS FOUNDATION TAX DEDUCTIBLE?
Yes. The Fred Hollows Foundation is a registered DGR charity. Every eligible donation is fully tax deductible, and you will receive a tax receipt automatically. You can verify the Foundation’s DGR status on ABN Lookup using ABN 46 070 556 642.
WHAT IS A DGR CHARITY?
DGR stands for Deductible Gift Recipient. It is an endorsement from the ATO that allows an organisation to receive tax-deductible donations. Only donations to DGR-endorsed organisations are deductible. You can check whether any charity has DGR status on ABN Lookup or the ACNC Charity Register.
HOW DO I CLAIM A CHARITABLE DONATION ON MY TAX RETURN?
Log into myGov, open your tax return for the relevant financial year, navigate to Deductions, and select D9 — Gifts or Donations. Enter the total of all eligible donations. Keep your receipts in case the ATO requests them.
WHAT IS THE EOFY DEADLINE FOR A TAX-DEDUCTIBLE DONATION IN 2026?
Your donation must be made on or before 30 June 2026 to be claimed in the 2025–26 tax return. The ATO uses the payment processing date, not the lodgement date. Any donations from 1 July 2026 onward are deductible in the following financial year.
HOW MUCH OF MY DONATION CAN I CLAIM?
You can claim the full amount of every eligible donation, provided it is $2 or more and made to a DGR. There is no upper limit. The deduction reduces your taxable income — the tax saving depends on your marginal rate.
DO I NEED A RECEIPT TO CLAIM MY DONATION?
Yes. For cash donations you need a valid receipt from the DGR. The exception is small cash donations to approved bucket collections — you can claim up to $10 total for these without individual receipts. The Fred Hollows Foundation issues receipts automatically for every donation. If you have lost yours, contact us and we will issue a replacement.
CAN I CLAIM REGULAR MONTHLY DONATIONS ON MY TAX RETURN?
Yes. Add together all monthly donations made between 1 July and 30 June and enter the total in D9. Fred Hollows Foundation monthly donors receive an annual giving statement covering the full year, so you do not need to track each payment individually.
ARE ALL CHARITIES TAX DEDUCTIBLE IN AUSTRALIA?
No. Only donations to DGR-endorsed organisations are deductible. Always check ABN Lookup or the ACNC Charity Register before lodging a deduction for any organisation you haven’t confirmed.
Give to The Fred Hollows Foundation this financial year
The Fred Hollows Foundation is a registered DGR charity, which means every eligible donation you make is fully tax deductible. We issue automatic tax receipts, provide annual statements for monthly donors, and put 75% of donated funds directly into eye health programs, community education, and advocacy.
If you have not yet made your donation for the 2025–26 financial year, there is still time before the 30 June deadline. For just $25, you can help fund sight-restoring surgery for someone who would otherwise go without care — and claim the deduction when you lodge.
Donate to The Fred Hollows Foundation before 30 June and claim your tax deduction.
Learn more about tax-deductible giving
How to claim a charitable donation on your tax return
End of financial year giving makes your donation count
Is my donation to a charity tax deductible?