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LD 4: Tax credits for payroll donations
or “How you can get tax credits for donations made through your pay”
You could also call this:

“How your employer calculates and reports your payroll donation tax credit”

When you make a payroll donation, your employer needs to work out how much tax credit you get for that pay period. They do this using section LD 4. Your employer must include this amount in the details they send to the tax department.

You might lose your tax credit if the tax department doesn’t get the right information about your payroll donation. This can happen if they don’t receive the employment income information or if the details they get are wrong.

But don’t worry! If there’s a mistake and it gets fixed, you’ll get your tax credit back. It will be like the mistake never happened.

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Next up: LD 6: When donation is paid to ineligible recipient

or “What happens if your payroll donation goes to an unapproved organisation”
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Part L Tax credits and other credits
Tax credits for gifts and donations

LD 5Calculating amount of tax credit and filing particulars

  1. The employer of a person who makes a payroll donation in a pay period must calculate the amount of the person's tax credit for the pay period under section LD 4, and include the amount in the particulars described in section LD 4(1)(a).

  2. The tax credit is extinguished if—

  3. the Commissioner does not receive the employment income information relating to the relevant payroll donation:
    1. the relevant particulars filed are incorrect.

      1. Despite subsection (2), the credit is restored to the person if the relevant matter is corrected and, for the purposes of this section, it is as if the error had never been made.

      Notes
      • Section LD 5: added, on , by section 323 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section LD 5(2)(a): amended, on , by section 159(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section LD 5 list of defined terms employer monthly schedule: repealed, on , by section 159(2)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section LD 5 list of defined terms employment income information: inserted, on , by section 159(2)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section LD 5 list of defined terms PAYE income payment form: repealed, on , by section 159(2)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).