The news of the earthquake, tsunami, and now nuclear threat to Japan has shaken the world. Images and video footage from the unfolding tragedy paint a bleak picture for the people of Japan. For people in Australia and New Zealand, the news of yet another natural disaster added to the pain already being felt by their own share of recent flooding, cyclones and earthquakes.
While the disasters on our backdoors meant that we had various ways to give and support each other, supporting the Japanese is more difficult. Thankfully, however, the Assistant Treasurer announced earlier this week that the earthquake and tsunami in Japan are now recognised as a disaster for tax purposes.
The news of the earthquake, tsunami, and now nuclear threat to Japan has shaken the world. Images and video footage from the unfolding tragedy paint a bleak picture for the people of Japan. For people in Australia and New Zealand, the news of yet another natural disaster added to the pain already being felt by their own share of recent flooding, cyclones and earthquakes.
While the disasters on our backdoors meant that we had various ways to give and support each other, supporting the Japanese is more difficult. Thankfully, however, the Assistant Treasurer announced earlier this week that the earthquake and tsunami in Japan are now recognised as a disaster for tax purposes.
This means that Australian taxpayers can now make donations to endorsed, tax-deductible funds and claim a tax deduction.
Below is a snippet from the press release from the Assistant Treasurer's website
Declaration of a disaster for the purpose of tax deductibility – Japan earthquake and tsunami
The Assistant Treasurer, the Hon Bill Shorten MP, today declared that the earthquake and tsunami that hit North-Eastern Japan on 11 March 2011 a disaster for tax purposes.
This declaration allows Australian taxpayers to claim an income tax deduction for donations made to the relief effort.
Funds still need to apply to the Australian Taxation Office (ATO) for formal endorsement, and the ATO has established a fast track process for this purpose.
Donations to funds are tax deductible for a period of two years from 11 March 2011. Taxpayers should ensure that they retain a receipt for their donation.
If you would like more information or would like to establish a tax-deductible fund, see the ATO's Non-Profit News Service No. 0320 - Support for earthquake and tsunami victims in Japan.
Image thanks to danmags100 on Flickr
