Background Note Index

Background Note

Philanthropy by Commonwealth electoral division, 2006–07

Contents

• Introduction
• Results
  • States and territories
  • Electoral divisions

Introduction

Using the latest available data published by the Australian Taxation Office for the 2006–07 income year, this background note looks at levels of philanthropy, or more specifically, tax deductible giving in Australia. The note focuses in particular on how levels of giving, both in absolute terms and as a proportion of taxable income, vary between states and between Commonwealth electoral divisions. The information is shown both in tables and on a map.

Results

States and territories

• In 2006–07, 3.90 million Australians claimed gift deductions, representing 42 per cent of all taxpayers.[1] The ACT had the highest proportion of taxpayers claiming deductions at 51 per cent, while Western Australia had the lowest proportion at 35 per cent (see Table 1).

Table 1. Tax deductible giving by state, 2006–07

Source: Derived from Australian Taxation Office, Taxation Statistics, 2006–07

http://www.ato.gov.au/corporate/content.asp?doc=/content/00177078.htm&mnu=47213&mfp=001

• A total of $1.74 billion was claimed in gift deductions by all Australians, representing 0.36 per cent of total taxable income. The proportion of taxable income claimed as gift deductions was highest in NSW at 0.47 per cent, followed by Victoria at 0.38 per cent and the ACT at 0.37 per cent. In the other states the proportion ranged between 0.24 and 0.28 per cent, falling to 0.17 per cent in the Northern Territory.
• The average gift deduction per taxpayer was $187, ranging from $255 in NSW to $87 in the Northern Territory. The average gift deduction per gifting taxpayer was $445, ranging from $584 in NSW to $238 in the Northern Territory.

Electoral divisions

• The electorate with the highest level of giving in 2006–07 was Wentworth (NSW) where the average gift deduction per taxpayer was $1624 (see Table 2). This was significantly higher than in any other Commonwealth electorate. Warringah (NSW) was next highest with $1144 per taxpayer, followed by Higgins (Vic.) with $886 per taxpayer. The lowest level of giving was $64 per taxpayer in Grey (SA).
• Not only did Wentworth have the highest average level of giving, it also had the highest mean taxable income of any electorate at $102 826 per taxpayer. Further, even when giving is expressed as a proportion of taxable income, Wentworth still ranked ahead of all other electorates with total gifts equal to 1.58 per cent of total taxable income. This compares with 1.21 per cent in Warringah, the second highest electorate, and 1.01 per cent in Higgins, the third highest. All other electorates recorded significantly less than one per cent, ranging from 0.76 per cent in Curtin (WA) to 0.12 per cent in Kalgoorlie (WA).
• The electorate with the highest proportion of taxpayers claiming gift deductions was Calwell (Vic.) at 55 per cent. Significantly, of the 150 Commonwealth electorates, the mean taxable income of taxpayers in Calwell was the 30th lowest. In other words, Calwell had the highest proportion of taxpayers claiming gift deductions, even though it was ranked in the lowest 20 per cent of electorates in terms of its mean taxable income. This contrasts with Forrest (WA) which had the lowest proportion of taxpayers claiming gift deductions, yet was ranked in the top 40 per cent of electorates in terms of its mean taxable income.
• Standout electorates with low mean incomes but high rates of giving were Blaxland (NSW), Chifley (NSW), Reid (NSW) and Watson (NSW). Each of these electorates was ranked in the bottom quarter of all electorates in terms of its mean taxable income, but was ranked in the top quarter of electorates in terms of its giving (total gifts as a proportion of taxable income).   
• Electorates with high mean incomes but low levels of giving were Brand (WA), Capricornia (Qld), Dawson (WA), Kalgoorlie (WA), and Solomon (NT). Each of these electorates was ranked in the top third of all electorates in terms of its mean taxable income, but was in the lowest ten per cent of electorates in terms of its giving.
• A map of the electoral distribution of giving in Australia shows clearly that there are significant regional differences. Overall, gifts as a proportion of taxable income fell from an average of 0.52 per cent in inner metropolitan electorates, to 0.30 per cent in outer metropolitan electorates, to 0.26 per cent in provincial electorates, and to 0.22 per cent in rural electorates.

[1].    A gift deduction may include several separate gifts or donations made by an individual taxpayer during the course of an income year.

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