13 January 2026
Charitable donations surged to $9.1 billion in the 2023 financial year as the number of Australians who had donated to a charity lifted by 216,000 people to nearly 4.5 million, KPMG analysis of ATO data reveals.
The surge was largely thanks to a sharp rise in donations in Inner Perth, which increased from $382 million in the 2022 financial year, to almost $5.3 billion in 2023 when Andrew and Nicola Forrest gifted $5 billion worth of Fortescue shares to the Minderoo Foundation.
This single donation saw the average Australian tax-deductible donation increase significantly to $2,032, a rise of 90.4 percent compared to the previous year’s average donation of $1,067. It also meant total value of donations in Western Australia went up by a whopping 736.7 percent.
The generosity of Western Australian’s offset falls across in some other states with the total value of donations in New South Wales dropping 14.7 percent and Queensland dropping 16.7 percent. The other states besides WA to record an increase in total value of donations were the Northern Territory (7.4%), South Australia (5.2%) and Victoria (3.5%).
“While the cost-of-living crisis squeezed family budgets and led to a fall in the value of donations it didn’t stop the Aussie spirit of generosity as more chose to donate than the previous year,” said KPMG Urban Economist, Terry Rawnsley.
“Despite our generosity, charities are still facing pressure on two sides; a declining donor base in some states and heightened demand for their services amid cost-of-living pressures,” added Rawnsley.
Western Australia leads the nation in giving
Western Australia emerged as the most generous state by a substantial margin, recording an extraordinary 736.7 percent growth in donation amounts and averaging $11,538 per donor, the highest across all states and territories.
“Even removing the post code which included the Forrest’s $5 billion donation to Minderoo, WA still recorded the highest average donation at $1,160,” Rawnsley said.
In contrast, the Northern Territory continued to see the lowest average donation at $503, reflecting typical income disparities across the country.
New South Wales donors, while making up the largest absolute number of contributors (1,400,550), saw their average donation shrink by 18.6 percent to $1,063. Victoria’s average donation also saw a decline, falling to $963, a 1.9 percent decrease.
Meanwhile, Tasmania saw one of the sharpest average donation declines, down 9.9 percent from the previous year, while the ACT saw a relatively small decline at 7.0 percent. South Australia only experienced modest growth, with donations increasing by 1.1 percent.
Donations by state for 2022-23
| State | Donator Tax Payers | Donator per 1,000 | Total Donation Million($) | Average Donation ($) | Average Donation % change |
|---|---|---|---|---|---|
| WA | 476,163 | 271 | 5,494 | 11,538 | 736.7% |
| WA (without postcode 6011) | 474,191 | 271 | 550 | 1,155 | -16.2% |
| NSW | 1,400,550 | 283 | 1,489 | 1,063 | -18.6% |
| ACT | 105,958 | 343 | 99 | 934 | -7.0% |
| VIC | 1,259,532 | 301 | 1,213 | 963 | -1.9% |
| QLD | 834,785 | 255 | 551 | 660 | -20.3% |
| SA | 278,723 | 254 | 183 | 657 | 1.1% |
| TAS | 79,849 | 300 | 45 | 564 | -9.9% |
| NT | 37,750 | 280 | 19 | 503 | 2.4% |
| Australia | 4,480,670 | 278 | 9,103 | 2,032 | 90.4% |
Source: KPMG analysis of Australian Taxation Office (ATO) Individuals statistics for Taxation statistics data for 2021-22 and 2022–23
Affluent suburbs donating less while others increase generosity
While affluent inner-city suburbs continued to dominate the highest average and total donation rankings, 2022-23 saw sharp declines for many suburbs as residents pulled back on charitable giving.
Sydney’s Eastern Suburbs and the City & Inner South SA4* reported average donation declines of 34 percent and 60 percent respectively. Similarly, Melbourne's Inner SA4 saw a 23 percent decline in total donations and Brisbane’s Inner City saw a drop of 57 percent.
Top ten areas by average donations for 2022-23
| Location SA4 | Average Donation ($) | Growth from previous year |
|---|---|---|
| Perth – Inner | 145,456 | 1,233% |
| Sydney – Eastern suburbs | 3,837 | -34% |
| Sydney – North Sydney and Hornsby | 2,856 | -6% |
| Melbourne – Inner | 2,310 | -23% |
| Melbourne – Inner East | 2,173 | 6% |
| Sydney – City and Inner South | 1,981 | -60% |
| Sydney – Northern Beaches | 1,819 | -3% |
| Sydney – Ryde | 1,597 | 1% |
| Brisbane – Inner City | 1,406 | -57% |
| Melbourne – Inner South | 1,371 | -8% |
Note: Locations which do not align with the Statistical Area 4 (SA4) geography (e.g. taxpayers living overseas) have been excluded.
Source: KPMG analysis of Australian Taxation Office (ATO) Individuals statistics for Taxation statistics data for 2021-22 and 2022–23
Conversely, some regional and outer-suburban SA4s experienced robust donation growth. Toowoomba saw an 87 percent increase in average donations, along with the Central Coast (63 percent).
The SA4 of Murray Region (22 percent), Southern Highlands & Shoalhaven (13 percent), and Melbourne’s Outer East (97 percent) also emerging as generous locations.
“Post COVID we saw a strong migration of people out of the inner city to lifestyle-oriented locations like the Central Coast and Southern Highlands. It stands to reason that many high-net-worth individuals were part of that migration and have brought their philanthropy to these regional areas,” Rawnsley said.
Top ten areas for fastest growing in donation for 2022-23
| Locations | Average Donation ($) | Growth from previous year |
|---|---|---|
| Perth – Inner | 145,456 | 1,233% |
| Melbourne – South East | 1,195 | 97% |
| Toowoomba | 1,085 | 87% |
| Sydney – Sutherland | 1,213 | 64% |
| Central Coast (NSW) | 822 | 63% |
| Murray (NSW) | 562 | 22% |
| Capital Region (NSW) | 729 | 20% |
| Southern Highlands and Shoalhaven | 1,016 | 13% |
| Melbourne – Outer East | 709 | 13% |
| Western Australia – Outback (South) | 568 | 13% |
Note: Locations which do not align with the Statistical Area 4 (SA4) geography (e.g. taxpayers living overseas) have been excluded.
Source: KPMG analysis of Australian Taxation Office (ATO) Individuals statistics for Taxation statistics data for 2021-22 and 2022–23
Tax benefits can entice more donations
While it’s not always the main driver for making charitable donations, obtaining a tax deduction may enable taxpayers to be more generous, said KPMG tax partner Craig Robinson. But not all organisations will qualify, so people should check the organisation’s status using its Australian Business Number (ABN).
“When considering a donation, taxpayers will only be able to claim a deduction for donations to qualifying deductible gift recipients,” Mr Robinson said.
For a tax deduction to be available, the taxpayer must not receive any material benefit in return, purchasing entries into raffles or attending fundraising dinners typically will not qualify, he said.
“When considering making donations to international causes, individuals may wish to check whether there is an entity or partner organisation which holds Australian deductible gift recipient status in order to obtain an income tax deduction,” Mr Robinson said.
* Statistical Area 4 (SA4) are groupings of similar suburbs. In total, there are 108 SA4s across Australia.
For further information
Hayden Jewell
Media Relations Manager
KPMG Australia
0423 868 454
hjewell@kpmg.com.au
