School Building Funds and Sacrificial Envelope offerings.
School Building Funds and Sacrificial Envelope Offerings. Are you getting the tax deductions you are entitled to?
School Accounting consultant, Mr Patrick Rowan outlines the tax deductibility of gifts and donations as applicable to St Mary’s Parish, Geelong.
School Building Funds – Tax Deductible Gifts
Your children’s school fee statement may have an item for payment to a School Building Fund, it could be called capital work’s levy or similar, these are not voluntary contributions.
If your school is building new classrooms, renovating or just maintaining existing buildings, it relies on contributions from families to make these projects happen.
The Australian Taxation Offices advises that gifts to school building funds will only be tax deductible if the contribution is made voluntarily.
Additional voluntary contributions to the school building funds – St Marys, St Margarets, Christ the King and St Roberts, are tax deductible.
If the contribution is compulsory, and built into the school fees, no tax deduction is allowed.
Sacrificial envelope monetary offerings
Monetary contributions given to the Parish are a partly deductible in your Income Tax Return.
How do I know how much is tax deductible?
At present, 70% of your contribution made to the St Mary’s Parish is tax deductible in your Income Tax Return.
A 70% deduction is allowed for envelope contributions only.
Receipts for the contributions will need to be maintained along with your Income Tax Return information for a period of five years.
Why am I entitled to a tax deduction?
These deductions are allowed because the school building funds that are contributed to are endorsed as a deductible gift recipient, that is, they have met the criteria for DGR status.
In the case of envelope sacrificial offerings, 70% of your contributions are used to re-pay loans for capital works at the Parish Primary Schools.
Make sure you are getting the tax deductions you are entitled to.
Patrick Rowan & Associates, Geelong specialise in School Accounting.
Disclaimer: This is general advice only and applies to the St Mary’s Geelong Parish only. For information on the tax deductible status of your regular sacrificial contributions, please contact your Parish office. Information is based on Australian Taxation Laws as at 10 February 2016. The taxation laws covering School Building Funds may change from time to time.