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:
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.
Not all voluntary work expenses are tax deductible.
This article was published on 17/12/2013 and is current as at that date
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