DOING GOOD, WORKING SMART.
Doing good can also be good for business.
When your sense of social responsibility leads you to help those less fortunate, you can also benefit – by qualifying for tax deductions. The role of business in helping build up communities and giving individuals a hand up, is vital to our economy. As such, government has legislated further concessions to allow greater tax relief for donators.
Deductions for donations made to a PBO / government department or any other s18A listed body.
THE DEDUCTION IS CALCULATED AS:
The amount donated/value attached thereto limited to:
10%* of the balance of Taxable Income calculated immediately prior to the S18A deduction.
WHAT DOES THIS MEAN?
In the past the excess donation above the 10% limit was lost, but going forward the excess donation above 10% limit can be carried forward to subsequent years of assessment.
HOW DOES THIS AFFECT MY COMPANY?
Deductions for donations made to a PBO / government department or any other s18A listed body in excess of the 10% limit can be carried forward to subsequent years of assessment.
Effective date of change is for years of assessments commencing on/after 1 March 2014.