24 July 2012

Declaration of a disaster for the purposes of tax deductibility - Italian earthquakes

Assistant Treasurer David Bradbury has declared the earthquakes that hit North-Eastern Italy on 20 May and 29 May 2012, a disaster for tax purposes.

This declaration allows Australian taxpayers to claim an income tax deduction for donations made to the relief effort.

"This tragic event has claimed the lives of many people, injured around 400 people, devastated the local economy, and caused massive damage to art and architecture which is historically significant," said Mr Bradbury.

"Aftershocks have continued since May, making it difficult for the communities to get back on their feet, and resume normal activities."

"The sympathies of the Australian Government and all Australians have been with the people of Italy through this difficult time and I know that the Australian community continues to extend its support to those affected."

Funds still need to apply to the Australian Taxation Office (ATO) for formal endorsement, and the ATO has established a fast track process for this purpose.

Donations to funds are tax deductible for a period of two years from 20 May 2012. Taxpayers should ensure that they retain a receipt for their donation.

Further information on establishing a developed country disaster relief fund is available at the ATO website.