The Gillard Labor Government has today moved to assist the disaster recovery effort for victims of the Christchurch earthquake, making all donations by Australians tax deductible.
The Assistant Treasurer, Senator Nick Sherry, announced the earthquake that hit New Zealand's second largest city last Saturday has been recognised as a disaster for Australian tax purposes.
“The thoughts of all Australians and the Australian Government are with our friends across the Tasman at this terrible time,” the Assistant Treasurer said.
“This sudden and indiscriminate blow to one of our closest neighbours has brought out the traditional solidarity between our two countries.”
“I know Australians will want to help out the people of Christchurch, and allowing a tax deduction for their gifts is an appropriate way of boosting the relief drive,” the Assistant Treasurer said.
The declaration means public funds established and maintained by a public benevolent institution solely to provide money for the relief of people in New Zealand who are in distress as a result of the Christchurch earthquake can be endorsed as ‘developed country relief funds'.
Donations to such funds are tax deductible for a period of two years from 4 September 2010. Taxpayers should ensure they retain a receipt for their donation.
Further information on establishing a developed country disaster relief fund is available at the Australian Taxation Office website www.ato.gov.au/nonprofit.