The Assistant Treasurer, the Hon Bill Shorten MP, today declared that the earthquake and tsunami that hit North-Eastern Japan on 11 March 2011 a disaster for tax purposes.
This declaration allows Australian taxpayers to claim an income tax deduction for donations made to the relief effort.
"So far this tragic event has claimed the lives of many people and there are still many people missing. The death toll is sadly likely to rise and the scale of destruction is most distressing," the Assistant Treasurer said.
"Aftershocks are expected to continue and this could lead to further damage as well as continued disruption to power, telecommunications and the rescue effort."
"The deepest sympathies and heartfelt goodwill of the Australian Government and all Australians are with the people of Japan at this time. They are special friends and we are right beside them," the Assistant Treasurer said.
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 11 March 2011. 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 www.ato.gov.au/nonprofit.