Countdown has recently applied for a product ruling from IR, with respect to its Onecard donate to charity programme.
For those of you who shop at Countdown and use your Onecard each time you make a purchase, you will appreciate that you accumulate Onecard points based on your dollar spend, and every now and then you’re receive a message that your points total has now crossed the threshold to generate an e-voucher, which if you’re like me, you immediately use to offset against your current shopping tally.
Well apparently, rather than spending this e-voucher on yourself, you can also request that Countdown donate your e-voucher monetary value to one of a number of charities who participate in the programme.
The product ruling has been sought, to clarify whether the Onecard holder is then entitled to claim a donation rebate, which respect to the value of the e-voucher donated to the participating charity.
In a nutshell, provided the six conditions stipulated by the Commissioner are satisfied (nothing earth-shattering or unexpected), a Onecard holder’s donation of $5 or more, will be deemed for the purpose of sections LD 1 and LD 3 to be ‘a charitable or other public benefit gift’.
Consequently, the Onecard holder will have under section LD 1(2), a tax credit, for the tax year in which the ‘charitable or other public benefit gift’ is paid, equal to the amount of the e-voucher donated multiplied by 33 & 1/3%.
The Ruling applies for the period 25th November 2020 to 31st December 2023.