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Home News Australia

Tax office data shows fewer Australians giving to charity despite sector revenue growth

byJoe Higgins
15 June 2021
Reading Time: 2 mins read
AA
Money matters: The number of donors in Australia is on the decline but Australia’s peak charity body says the sector remains “robust”.

Money matters: The number of donors in Australia is on the decline but Australia’s peak charity body says the sector remains “robust”.

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FEWER Australians gave to charity over the financial year 2018-19, the lowest in 50 years, new Australian Tax Office data reveals. 

The ATO reported less than 29 per cent of the nation’s taxpayers made a tax deduction during 2018-19.

A range of factors could explain the drop in donors from poor wage growth to the decline of Baby Boomers, but most experts have pointed the finger at consumer confidence.

The number of people giving to charity has had a general decline since the end of the Global Financial Crisis.

But the ATO data cuts off before the 2020 January bushfires, which saw large crowdsourced fundraising efforts.

Despite the decrease in the number of people giving to charity over that financial year, Australia’s peak charity body has reported the sector remains strong. 

The Australian Charities and Not-for-profits Commission released data in May that showed the sector was “robust” immediately prior to COVID-19 and the bushfires.

ACNC reported the sector employed 11 per cent of Australia’s workforce – about 1.38 million people – and generated $166 billion in revenue.

The sector’s revenue grew by 6.8 per cent on the previous year, the report said.

ACNC Commissioner Dr Gary Johns said there was also a $1.3 billion rise in donations, a testament to public confidence in the work charities do. 

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He said the report sets an important benchmark.

“This comprehensive analysis of the data sets the benchmark for our future understanding of the significance of the COVID-19 pandemic and the catastrophic 2020 bushfires,” Dr Johns said. 

“These major events are likely to have affected the sector and we will have a clearer picture of that in our next annual data analysis.”

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