Bangladesh: Mosammat Kulsum lives on a char, or sandbank, in the Jamuna River. Floods and erosion have displaced her more than 20 times – three times in the past year. Photo: ©Elizabeth Stevens/Oxfam

Salary sacrifice charity donations & workplace giving

Learn more about how you can donate through your pay to create a world where everyone can live free of the inequalities that hold them back.

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Kenya: Buke Gabasa Halake, Biqiltu Women Group Chairlady holds up kale from the group's kitchen garden. The kitchen garden is part of the Oxfam Kenya's resilience and livelihoods building project for drought-affected communities in Marsabit. Photo: Peter Irungu/Oxfam

Wouldn’t it be nice to change lives just by going to work?

Workplace giving is one of the simplest and most effective ways you can donate to Oxfam Australia and help people lift themselves out of poverty. You choose the amount of your salary you wish to donate and it will be deducted from your pay.

Last year, workplace givers donated $420,000 to Oxfam Australia, which continues to help us tackle the inequality that fuels poverty all over the world.

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What Australian workplace givers agree

85%

of employees feel it’s important to give back to the community through their workplace (Australian Charities Fund Research, 2014).

92%

of workplace givers described themselves as very pleased to donate (Good2Give research, 2015).

79%

are very passionate about the work of their charities (Good2Give research, 2015).

94%

want giving to be easy and they feel workplace giving is quick and easy (Good2Give research, 2015).

How to set up workplace giving

If your workplace offers workplace giving, getting started is simple. Choose how much you’d like to give, complete a short authorisation form, and your employer takes care of the rest. Here’s what the process usually looks like.

1. Check whether your employer offers workplace giving

Many organisations already have a program in place. If not, some employers are open to setting one up when employees ask.

2. Choose a charity with Deductible Gift Recipient (DGR) status

Only donations to DGR charities are tax-deductible, so it’s worth checking. You can use the ACNC’s Search for a charity to confirm a charity’s status. Oxfam Australia is a registered DGR.

3. Complete your workplace giving or payroll authorisation form

This form tells your employer how much you want to give from each pay. Once approved, the donation starts automatically.

4. Check your payslips

Your donation will appear as a separate line on your payslip. This helps you keep track of what’s being deducted.

5. Review your income statement at tax time

Workplace giving amounts will most likely show up automatically in your income statement, but that depends on your employer’s system. You can still use your payslips or income statement as your record if the amount isn’t prefilled in your tax return.

You can change the amount or stop the deduction at any time by submitting a new form to your employer. The process is flexible, and your employer’s payroll team can help if you’re unsure about any step.

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How employers support workplace giving and salary sacrifice donations to charity

Employers play a key role in both workplace giving and salary sacrifice agreements.

Setting up workplace giving programs
For workplace giving, employers configure their payroll system to deduct your donation and send it to charity. These deductions are reported through Single Touch Payroll (STP) Phase 2 using the code “W – Workplace giving” which makes things smoother come tax time. No need to worry about tax receipts.

Facilitating salary sacrifice arrangements
Salary sacrifice works differently. The ATO requires employers to approve the arrangement before the employee earns the income and to provide the agreed benefit in place of some of your salary.

Payroll processes
Once approved, employers process deductions (or benefits) through payroll each pay cycle. For workplace giving, funds are transferred directly to the DGR charity. For salary sacrifice, payroll adjusts the employee’s salary and applies the agreed-upon benefit.

Frequently asked questions

What is salary sacrifice?

In Australia, salary sacrifice is an arrangement where an employee agrees to receive a smaller salary (and only pay income tax on that smaller salary) in exchange for non-cash benefits. For example, the employee may choose to donate $15,000 via salary sacrifice in exchange for a work car.

Why should you give through your pay?

*Disclaimer: the information on this page is general in nature and you should always speak to your tax advisor about your individual circumstances. You should also speak to your employer about the specific terms of your employer’s workplace giving policy.