How does employee giving work?
An employee giving donation is deducted from your regular payroll salary. The benefits of employee giving are:
- Receive a tax deduction without the need to keep receipts for tax purposes.
- Spread donations over the year, rather than making a larger one-off donation.
How does it affect my tax?
It simplifies your tax deduction claim and delivers the benefit of tax deductibility to you immediately, rather than waiting for tax return time.
The tax deduction you would normally get at the end of the year is brought forward and applied immediately, so you don't have to find receipts for donations at the end of the year.
Your payment summary at the end of the financial year will detail your donations. For more information on how this will affect your tax, visit the Australian Taxation Office website here.
In your tax return, you claim the amount donated, which is recorded in your annual payment summary from AGL.
Do I need to do anything at tax time?
Yes. The ATO requests you record the annual amount of your donations as a tax deduction on your tax return so they can measure Australia’s workplace giving effort. AGL will provide your donation amount to you at the end of the year on your PAYG Payment Summary (Group Certificate).