Private ruling: Deductibility of donation
Date of advice: 25 August 2025
Published: 3 November 2025
Ruling period: Income year ended 30 June 20XX

Ruling: Q1: Is Person X entitled to a deduction under Division 30 of the Income Tax Assessment Act 1997 (ITAA 1997) for goods gifted or contributed to Entity Y in the income year ended 30 June 20XX? | A1: No

Relevant facts and circumstances: 1. Person X is a resident of Australia for tax purposes. 2. Person X donated items to Entity Y. The items were collected on XX July 20XX. 3. Person X received a letter from Entity Y on XX July 20XX which lists and values the items that were collected. 4. The valuation of the items in the letter was provided by Person X. 5. The letter includes the ABN of the entity in receipt of the donated items. This entity is Entity Y. 6. Entity Y is a registered charity but does not have deductible gift recipient (DGR) status.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 30 | Income Tax Assessment Act 1997 section 30-15 | Income Tax Assessment Act 1997 section 30-17 | Income Tax Assessment Act 1997 subsection 30-17(2) | Income Tax Assessment Act 1997 Subdivision 30-B | Income Tax Assessment Act 1997 Subdivision 30-BA | Income Tax Assessment Act 1997 section 30-226 | Income Tax Assessment Act 1997 subsection 30-227(2)

Reasons for decision: Summary: Person X is not entitled to a deduction under Division 30 for goods gifted or contributed to Entity Y on XX July 20XX. | Detailed Reasoning - Detailed reasoning: Division 30 sets out the rules for working out deductions for certain gifts and contributions made. The situations in which a taxpayer can deduct a gift or contribution are itemised in a table in section 30-15. For each situation (item) the table specifies (among other requirements) who the recipient of the gift or contribution can be. To be able to deduct a gift made to a fund, authority or institution that is both described in the column headed 'Recipient' of item 1 of the table in section 30-15 and not mentioned by name in an item of a table in Subdivision 30-B, subsection 30-17(2) also requires that the fund, authority or institution must be an entity or government entity that is endorsed under Subdivision 30-BA as a DGR. Section 30-226 states: An entity must ensure certain details must appear on a receipt it issues for a gift that: (a) is made to the entity or a fund, authority or institution it operates; and (b) is of a kind that the giver can deduct under Subdivision 30-A. If the entity has an ABN, the Australian Business Registrar must state in the Australian Business Register that the entity is a deductible gift recipient. A DGR is defined at subsection 30-227(2) and states that a DGR is an entity or government entity that: (a) is a fund, authority or institution described in item 1, 2, 4, 5 or 6 of the table in section 30-15 and is: (i) endorsed under Subdivision 30-BA as a deductible gift recipient; or (ii) mentioned by name in that table or in Subdivision 30-B; or (iii) (Repealed by No 88 of 2009) (b) is endorsed as a deductible gift recipient for the operation of a fund, authority or institution described in item 1, 2 or 4 of the table in section 30-15. | Detailed Reasoning - Application to your circumstances: Entity Y is an institution that both fits the description of 'Recipient' in item 1 of the table in section 30-15 and is not mentioned by name in an item of a table in Subdivision 30-B. The requirements of section 30-17 therefore apply such that Entity Y must be endorsed as a DGR. As Entity Y has not been endorsed as a DGR: • Entity Y does not meet the requirement of section 30-17; • it cannot be said that all the relevant requirements for deductibility under item 1 of the table in • section 30-15 were satisfied in respect of Person X's donation to Entity Y on 18 July 2023; and • Person X is therefore not entitled to a deduction under Division 30 for that donation.