Apportionment of deductions
You can choose to spread (apportion) the tax deduction over a period of up to five income years where the deduction is a result of:
- A gift of money or property valued at more than $5,000 to a tax deductible environmental organisation; or
- The entry into a perpetual conservation covenant with an accredited conservation program. More information about the apportionment of tax deductions relating to conservation covenants can be found at Tax concessions for landowners who enter conservation covenants.
Note: At present the only tax-deductible heritage organisations are the state/territory and national bodies of the National Trust.
Do you qualify?
To spread (apportion) the tax deduction under the Income Tax Assessment Act 1997, you must:
- donate to an organisation listed on the Register of Environmental Organisations, or the environmental organisations listed in the Income Tax Assessment Act 1997 or the National Trust organisations listed in the Income Tax Assessment Act 1997; and
- have made the donation on or after 1 July 1999; or
- donate property valued at more than $5000; or
- obtain a valuation verifying the value of the gift through the Australian Taxation Office (ATO)
- have entered into a conservation agreement and be eligible for conservation covenant deductions
The ATO charges a fee for valuations on a cost recovery basis and the fee is tax deductible. Information on the valuation process is available from the ATO and in the Income Tax Assessment Regulations 1997.
ATO contact details:
Australian Taxation Office
GPO Box 9977
HOBART TAS 7001
Phone: 1300 356 780
To find out which environmental organisations have tax deductibility status, go to the Australian Business Register.
How to spread the tax deduction
To spread the tax deduction over a period of up to five income years, you must make an election stating how much of the deduction you will claim each year over the five years.
To make an election, you must use the appropriate form available below. You can also make a variation to a previous election by using the same form.
You must lodge a copy of the form with the Secretary of the Department of the Environment (the Secretary).
The Department of the Environment (the Department) will acknowledge the lodgement of your form in writing. You should keep the original of your form and the Departmental acknowledgment as part of your tax records. You must also keep the original receipt for the donation from the recipient body and the original valuation certificate from the ATO in your tax records.
The Secretary has no role in vetting or approving the applications for election. This role is performed by the ATO as part of its normal audit processes. The ATO may use records kept by the Department for audit purposes.
Obtaining the form
The following apportionment election forms will guide you through the process of making an election.
For apportionment of donations to the environment and heritage bodies:
For apportionment of conservation covenant deductions:
Alternatively, you can contact the Department by telephone on 02 6274 1467 or email email@example.com to ask for the form to be posted or faxed to you.
Division 30 of the Income Tax Assessment Act 1997 covers the gift deduction provisions. The Act can be viewed at the Australian Attorney Generals Department's Comlaw web site.
The information requested in the apportionment election forms is required under the Income Tax Assessment Act 1997.
Where authorised by law to do so, we may give this information to other government agencies. This includes the ATO who may use records kept by the Department for audit purposes.