Aussie donation rates slow as taxpayers feel cost-of-living pinch
There has been a significant decrease in the number of people donating over the past decade due to lower income pressures, according to a KPMG tax analysis.
Australian residents are slowing the amounts at which they donate to charity, with less than 30 per cent having donated to a registered charity.
A KPMG analysis of ATO tax data revealed the number of people donating had fallen by 270,000 over the past 10 years, which reflected the position of lower-income earners.
The data also highlighted the average tax-deductible gift or donation was $1,067 and for every 1,000 taxpayers, only 275 were in a position to give.
KPMG urban economist Terry Rawnsley said while Australians were always willing to “dig deep”, cost-of-living pressures had forced them to pull back.
“In this tough economic environment something has to give, and unfortunately when people are feeling the pinch, they have to focus on their own families first and foremost,” he said.
“The news comes at a time when charities are already stretched, with demand for their services skyrocketing. This is creating a double-edged sword, with the need for support on the up at a time when the donor base is shrinking.”
Rawnsley noted those who could afford to donate had ‘dug deeper’ and the value of donations had increased by almost $600.
The data showed Western Australia to be the most generous state, with an average donation value of $1,377, followed by NSW at $1,305.
The Northern Territory was recorded at the lowest with an average donation of $491.
The ACT had the highest rate of donations, 342 per 1,000 taxpayers, and the highest median donation value at $250.
While South Australia and Queensland had the lowest rate of donators per 1,000 taxpayers at 251 and 253.
Rawnsley said the varying data across the states was a direct reflection of the differing income levels of households across the country.
“The ACT, NSW and Victoria all have a significant number of high-income earners compared to other states, so it makes sense that they are able to donate more,” he said.
“But the figures show that even when times are tough, the charitable spirit of Aussies remains strong, with people continuing to open their wallets and give what they can, and we expect to see that trend continue this Christmas.”
About the author
