Zakat al Maal (Alms giving – wealth tax)
Zakat is one of the five pillars of Islam and an act of worship that every Muslim should perform to help the underprivileged Muslims. In the Quran, the obligation of zakat is discussed several times. Allah said in the holy Quran;
“And be steadfast in prayer and regular in charity: And whatever good ye send forth for your souls before you, ye shall find it with Allah” (Qur’an 2:110)
According to Islam, Zakat is meant to be paid to purify the wealth. Therefore, those Muslims who have enough wealth must give a little amount i.e. 2.5% of the wealth to the poor and needy. It is the duty of wealthy people to serve the deprived community by helping them in every possible way. Muslims obliged to pay Zakat every year to purify their wealth, help the poor and to seek blessings from Allah.
This year 2020 the minimum threshold (Nisab is : $6,330.08AUD (gold value) or $467.10 AUD (Silver value)
Zakat al Fitr
Our beloved Prophet Muhammad (SAW) said:
“The fasting of the month of fasting will be hanging between earth and heavens and it will not be raised up to the Divine Presence without paying the Zakat al-Fitr”.
Zakat ul Fitr is compulsory on all Muslims regardless of age or financial standing. The only exemption is for those who do not have one sa’ (approximately 2.6 – 3kg) of their staple food in excess of their needs. It is a token of thankfulness to Allah for having enabled him or her to observe the obligatory fast.
Zakat al-Fitr is paid by the head of the family and for each one of his dependents including small children. Zakat ul Fitr must be paid before the end of the month of Ramadan. This year Zakath al Fitr is $12.00 minimum per person