In response to the tragic earthquake in Haiti, the Assistant Treasurer is advising Australians wishing to make donations towards relief efforts that overseas donations are treated differently for tax deduction purposes.
Australians considering giving towards the relief efforts should ensure any donations they make are to an endorsed Overseas Aid Fund that has deductible gift recipient (DGR) status.
"All Australians have been deeply saddened by the devastation in Haiti," the Assistant Treasurer said.
"Naturally, many Australians will want to make a direct contribution to relieve the suffering of Haitians and to assist with rescue, reconstruction and redevelopment efforts in Haiti."
In response to the earthquake disaster, appeals have been launched by organisations endorsed as DGRs for the operation of overseas aid funds.
However, tax deductibility for donations to be used outside Australia are subject to tight controls and require any newly established funds to go through a two-step process with the Australian Agency for International Development (AusAID) and the Australian Tax Office.
As this is a lengthy process, the Assistant Treasurer is advising that individuals and organisations may prefer to arrange with an existing tax deductible Overseas Aid Fund to collect money on their behalf for the victims of the earthquake.
Taxpayers can check whether an organisation has DGR status on the ABN Lookup website (www.abn.business.gov.au). Information about non-government organisations that operate tax deductible Overseas Aid Funds is also available on the AusAID website (www.ausaid.gov.au).
Haiti is on the list of developing countries as declared by the Minister for Foreign Affairs.
"Making donations to endorsed Overseas Aid Funds will ensure donations are quickly directed to the affected areas," the Assistant Treasurer said.
"In natural disasters, delivering aid quickly and through organisations that are equipped to deal with such tragedies is critical to reducing the suffering of affected communities."
Donations of $2 or more to DGRs are tax deductible. Donors should keep a receipt for tax purposes.