Can You Claim a Tax Deduction for Donating Shares?

A donation of shares may qualify for a tax deduction in some circumstances, but the rules are more detailed than the familiar rules for cash donations. The recipient's status, the type and value of the shares, when they were acquired and how they are valued can all matter.

The recipient generally needs DGR status

Tax deductions for gifts generally depend on the gift being made to an eligible deductible gift recipient, commonly called a DGR, and satisfying the relevant gift conditions. At Donate Your Shares, we are the facilitator to eligible recipient organisations.

Listed shares have specific rules

The Australian Taxation Office publishes specific guidance for gifts of listed shares valued at $5,000 or less, including an acquisition timing condition. Different valuation pathways may apply to property valued above $5,000.

A deduction does not automatically remove CGT issues

Giving away an asset can still be a disposal for capital gains tax purposes. The deduction and CGT consequences are separate questions and should be assessed together.

Records are essential

Keep evidence of ownership, acquisition date and cost base, the market value used, the transfer date, recipient details and any receipt or acknowledgment. Your accountant may need these documents to prepare the return.

Get advice before relying on an estimate

Donate Your Shares Australia does not provide personal tax advice. Tax outcomes vary, particularly for shares held by companies, trusts, estates, SMSFs or non-residents.

Ready to take the next step?

We can help with the donation process and supporting transaction records. Speak with your accountant about the tax treatment in your circumstances.

General Information Disclaimer

This article contains general information only and does not constitute financial, legal or tax advice. Requirements vary between holdings, brokers, registries and personal circumstances. Consider obtaining advice from an appropriately qualified professional.