Tax Credits Available For NZ for Earthquake Donations

Tax Credits Available online For NZ for Earthquake Donations

Bill Shorten Australian Assistant Treasurer informed last week that funds need to apply to the Australian Tax Office (ATO) for formal endorsement, and that the ATO had established a fast track process for this purpose. Donations to such funds are tax deductible for a period of two years from February 22, 2011.

The Australian government has recognized other overseas disasters for the purposes of tax deductibility in the past, including the bush fires in Greece in August 2007, the Abruzzo earthquake in Italy in April 2009 and the Taiwan typhoon in August 2009

Peter Dunne New Zealand Revenue Minister has reminded residents that all Christchurch earthquake cash donations over NZD5 by individuals through approved done organizations can gain a tax credit, and will be tax deductible when made by companies.

“This is worth being aware of at a time when New Zealanders are getting generous for the people of Christchurch in their hour of need,” Mr Dunne said.

Mr Dunne said that it was also great to see that Australia, as well as supplying invaluable assistance in the actual rescue and recovery operations in Christchurch, has recognized the disaster for donation tax purposes for Australian taxpayers.

This allowed Australian taxpayers to claim an income tax deduction for donations to the relief effort, and that public funds established and maintained by a public benevolent institution solely to provide money for the relief of people in New Zealand could be endorsed as ‘developed country relief funds’.

Dunne admitted: “There has been a huge amount of support flowing between our two countries in what has been a string of natural disasters on both sides of the Tasman in recent months.”

“The help and heart that has gone both ways has indicated how strong the bonds that tie us are, and further strengthened them.”