Claiming volunteer expenses as a tax deduction
- Involved in voluntary work?
|At a glance:
- Voluntary work expenses in relation to income producing activities may be deductible in certain circumstances.
- Be aware of whether voluntary work expenses can be claimed as a tax deduction.
- Contact us if you require any clarification or advice.
- Currently there is no taxation law specifically addressing whether voluntary work expenses are deductible.
- Generally voluntary work is unpaid and any payments made to volunteers may be categorised as being not assessable income. Therefore most expenses incurred in voluntary work are not tax deductible.
- The exception to this principle is where the expenses incurred are in relation to the gaining or producing of assessable income. In this instance a taxpayer may be entitled to claiming certain expenses as a tax deduction provided it is not capital, private or domestic in nature.
- Some common expenses that may be claimed as a tax deduction include items in relation to:
- Uniforms; and
- Safety equipment.
- Expenses will need to be apportioned where there is a private component as only the income-producing portion is an allowable deduction.
- In addition, if taxpayers choose to make a donation to the non-profit organisation it may be deductible if the following conditions are met:
- It is made voluntarily;
- Nothing is received in return, i.e. a badge or raffle ticket;
- The receiver is a deductible gift recipient; and
- Be in the form of money ($2 or more) or certain types of property.
- For more information, click here.
- Not all voluntary work expenses are tax deductible.