New analysis has crowned Western Australians as the nation's most generous donors, despite a significant overall drop in charitable giving amid rising financial pressures.
WA Tops the Giving Rankings
Data from the Australian Taxation Office, analysed by professional services firm KPMG, shows that West Australian taxpayers donated an average of $1,155 per person during the 2023 financial year. This placed the state at the top of the national generosity ladder, ahead of New South Wales in second place. Tasmania and the Northern Territory recorded the lowest average donations.
However, the impressive WA figure actually represents a decline of more than 16 per cent from previous years. The period covered was marked by escalating cost-of-living pressures and a series of interest rate hikes by the Reserve Bank of Australia.
The Forrest Factor and Economic Drivers
The analysis notably excludes one monumental contribution: the $5 billion transfer of Fortescue shares from Andrew and Nicola Forrest to their Minderoo Foundation. KPMG noted that this single philanthropic act was so large it would have added over $10,000 to the per-donor average for WA, drastically skewing the results.
KPMG urban economist Terry Rawnsley linked Western Australia's leading position to its resource-driven economy and concentrated high wealth, particularly in metropolitan Perth. "You can draw a straight line from the resources sector, to high income individuals, to those donations," Mr Rawnsley said, citing Andrew 'Twiggy' Forrest as a prime example. He also highlighted the state's strong tradition of philanthropy, evidenced by institutions like Telethon.
Supporting this, Australian Bureau of Statistics data shows the WA economy grew by 3.5 per cent in the 2023 financial year, buoyed by strong commodity prices. Nearly 480,000 WA taxpayers claimed deductions for donations that year.
National Trends and Sector Pressure
The decline in giving was a nationwide phenomenon. Even in Sydney's affluent eastern suburbs, average donations fell by a striking 34 per cent to $3,837 per person. "When households are feeling confident about their own finances they tend to donate that bit more," explained Mr Rawnsley. "When times are tighter, as we saw in 2022-23... people were a bit more conservative."
This conservatism comes at a difficult time for the charitable sector. "Despite our generosity, charities are still facing pressure on two sides," Mr Rawnsley noted, pointing to a declining donor base in some states and heightened demand for services due to the same cost-of-living pressures affecting donors.
Paradoxically, total revenue across the charity sector reached a record high of $222 billion in the year to June 2023, a jump of 10.7 per cent according to the Australian Charities and Not-for-profits Commission. This figure was also significantly boosted by the Forrest family's multi-billion dollar contribution.
