The Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, today launched the Australian Charities Fund's Workplace Giving Program in Sydney.
Senator Coonan said the workplace giving program had the potential to fundamentally improve the way charities and non-profit organisations are funded, reducing their fundraising costs and allowing them to concentrate their efforts and resources on the very worthy causes that they support.
"The beauty of workplace giving, having donations deducted directly from one's pay, is that is simple and convenient for the donor, and provides regular and reliable funding for the charity," Senator Coonan said.
"And I commend the tax office for their practice ruling on this issue which effectively means that employees who make donations through a workplace giving program get the applicable tax deduction automatically, without having to dig out their receipts at tax time.
"Currently only a third of taxpayers claim a deduction for a charitable donation, while two-thirds say they make such donations. Workplace giving can make the whole process easier.
"Funding their good works can be a major challenge for Australian not-for-profit organisations. Workplace giving has the potential to greatly increase the funding available, and importantly provide a great deal more certainty and stability in the flow of funding.
"Think of the power of this program. If we can get just 10 per cent of the Australian workforce forgoing $2 a week, almost $200 million will flow to the charity and non-profit sector each year.
"I would strongly encourage Australian employers to get behind the idea of workplace giving and I want to congratulate the Australian companies that are already offering workplace giving programs to their employees.
"Giving automatically through payroll deductions paves the way for a profound change in the way charities operate with much greater ability to commit to long term programs and to effectively plan for the future.
"This is so important for charities and non-profit groups involved in such things as medical research, helping disadvantaged families, overseas aid programs and home care for older Australians and people with disabilities.