This study analyses published Australian Taxation Office (ATO) data and represents the extent and characteristics of tax-deductible donations made and claimed by Australian taxpayers to Deductible Gift Recipients (DGRs) at Item D9 Gifts or Donations in their individual income tax returns for the 2020–21 income year.

Analysis of the ATO data showed that the total amount donated and claimed as tax-deductible donations in 2020–21 was $4.39 billion (compared to $3.85 billion for the previous income year). This constitutes a increase of 14.19 per cent or $545.72 million. The average tax-deductible donation made to DGRs and claimed by Australian taxpayers in 2020–21 was $1,047.27 (compared to $886.75 in the previous income year). This is an increase of 18.10 per cent.

Not all charitable organisations qualify for DGR status e.g., many religious or educational institutions, and donations to these organisations are not deductible gifts. The data does not include corporate and trust taxpayers. Expenses such as raffles, sponsorships, fundraising purchases (e.g., sweets, tickets to special events) or volunteering are generally not deductible as ‘gifts’.