The Assistant Treasurer, the Hon Bill Shorten MP, today declared the multiple tornadoes that hit Southern USA on 28 April 2011 and 22 May 2011 a disaster for tax purposes.
On Thursday, 28 April 2011, Alabama and other Southern US states suffered a rare storm system in which more than 160 twisters hit within 24 hours. That system killed over 350 people across seven states, and injured 1,700 people with an inexact number of people unaccounted for.
On Sunday, 22 May 2011, a massive tornado hit the town of Joplin, Missouri which has killed at least 116 people, and flattened 2,000 homes and damaging at least a quarter of the city, which is home to about 50,000 people.
As a result of these tornados many people are now homeless.
These are the worst tornado disasters in decades, and are responsible for the third largest number of tornado-related deaths in US history. The tornado of 22 May was the nation's deadliest single tornado in nearly 60 years.
"In my view, the Southern USA tornado disaster fulfils the requirements to be declared a disaster for tax purposes," Mr Shorten said.
This declaration allows Australian taxpayers to claim an income tax deduction for donations made to the relief effort.
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 28 April 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.