It’s the end of financial year, a time when many of us turn our attention to making charitable donations to help reduce our taxable income and the tax we will pay this year.
Let’s take a look at how it works.But it can be tricky to work out exactly what donating means to our bottom line. So this year, CARE Australia has released a nifty calculator to help you get clear a picture of what making a donation means to your after-tax income.
If you make a $100 donation and your income is between $37,001 and $80,000, then you’ll receive a tax deduction of $32.50.
If you make a $500 donation and your income is between $80,001 and $180,000 then you’ll get $185 back.
Even donating a small amount makes a difference to how much tax you pay: a $20 donation on the same income will generate a deduction of $7.40.
And although this might not seem to be a great deal of money to you, it can make a huge difference to the work CARE Australia does.
According to its figures, $10 can provide high yield seeds for a family, $60 provides clean water for a family, $69 can educate a girl for a year and $555 can build a community a vegetable garden so they can grow food close to home.
With only a few days to go until the end of the tax year, why not make a donation to CARE Australia today to make a difference to a community in need, and at the same time, reduce your tax bill?