Generous Aussies are being squeezed by cost-of-living pressures

4.3 million Aussies made a donation to a registered charity, that’s less than 30 percent, according to the latest tax data. 

KPMG found the average tax-deductible gift or donation was $1,067, and for every 1,000 taxpayers, just 275 were in a position to give.  

The data also showed the number of people donating had fallen by 270,000 over the past ten years, reflecting the pressure lower-income earners in particular were feeling for some time now. 

KPMG Urban Economist Terry Rawnsley said while Aussies were always willing to dig deep, cost-of-living pressures were forcing them to pull back. 

“In this tough economic environment something has to give, and unfortunately when people are feeling the pinch, they have to focus on their own families first and foremost,” Mr Rawnsley said. 

“The news comes at a time when charities are already stretched, with demand for their services skyrocketing. This is creating a double-edged sword, with the need for support on the up at a time when the donor base is shrinking.” 

“The good news though is that those who can afford it are digging even deeper, with the value of donations increasing by as much as $573.” Western Australia was the most generous state, with an average donation value of $1,377 followed by New South Wales ($1,305), while the Northern Territory had the lowest average donation ($491). 

The ACT had the highest rate of donators (342 per 1,000 taxpayers) and the highest median donation value ($250). South Australia (251) and Queensland (253) had the lowest rate of donators per 1,000 taxpayers. 

Mr. Rawnsley said that the state breakdowns reflect the income levels of households in those states. 

“The ACT, NSW and Victoria all have a significant number of high-income earners compared to other states, so it makes sense that they are able to donate more.” 

“But the figures show that even when times are tough, the charitable spirit of Aussies remains strong, with people continuing to open their wallets and give what they can, and we expect to see that trend continue this Christmas.” 

Individual Tax Payers– Gifts or donations, by state/territory, 2021–22 income year 

^{Note: Australia includes overseas based tax payers} 

^{Source: KPMG analysis of ATO Taxation Statistics}  

Hayden Jewell
+61 423 868 454
hjewell@kpmg.com.au