June 30 has passed, but you may like to take advantage of two little known tax deduction benefits this financial year.
Many taxpayers are unaware that they can make tax deductible gifts of any size, then spread out the benefit of the deductions across five years, in whatever percentages the taxpayer wishes.
If you have a charity you are keen to support with an extra gift in the last days of this financial year, you can give more and plan the benefit of the deductions.
More complex rules apply for gifts other than money (for example gifts of shares, property, etc.) and certain specialised gifts like art works and conservation covenants to protect land.
And remember you can also donate small “unmarketable parcels” of shares to charities and receive a tax deduction for the proceeds: the not-for-profit Share Gift Australia will sell the shares for you at no cost – and brokerage free. It’s a bit late to use this option in this financial year because ShareGift sells after accumulating sufficient shares from multiple donors to make a up viable quantity. But, this is something you may want to think about for the next financial year. Note: sale and donation of the proceeds does still have CGT implications.
Roewen Wishart is the NeuRA Foundation Director and has over 20 years experience in the fundraising and philanthropic sectors.