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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS

Division 26 - Some amounts you cannot deduct, or cannot deduct in full

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History Div 26 heading substituted by No 121 of 1997.

Operative provisions

SECTION 26-22  Political contributions and gifts

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You cannot deduct political contributions or gifts

26-22(1)

You cannot deduct under this Act (other than Subdivision 30-DA ):

(a) a contribution (including a membership fee) or gift to a political party that is registered under Part XI of the Commonwealth Electoral Act 1918 or under corresponding State or Territory legislation; or

(b) a contribution or gift to an individual when the individual is a candidate in an election for members of:

(i) an *Australian legislature; or

(ii) a *local governing body; or

(c) a contribution or gift to an individual who is a member of:

(i) an Australian legislature; or

(ii) a local governing body.

Exception for employees and office holders

26-22(2)

However, subsection (1) does not apply to a loss or outgoing incurred in gaining or producing assessable income from which an amount is required to be withheld under section 12-35 or 12-45 in Schedule 1 to the Taxation Administration Act 1953 .

Note:

These provisions of the Taxation Administration Act 1953 require amounts to be withheld from income of employees and office holders.

Starting and stopping being a candidate

26-22(3)

For the purposes of this section, an individual:

(a) starts being a candidate when the individual ' s intention to be or to attempt to be a candidate for the election is publicly available; and

(b) stops being a candidate at the earlier of:

(i) the time when the result of the election is declared or otherwise publicly announced by an entity (an electoral official ) authorised under the relevant electoral legislation; and

(ii) the time (if any) when the individual ' s intention to no longer be a candidate for the election is publicly available.

Starting being a member

26-22(4)

An individual who becomes a member as a result of an election (including an election that is later declared void) is taken to start being a member when the individual ' s election as a member is declared or otherwise publicly announced by an electoral official.

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History S 26-22 inserted by No 16 of 2010, s 3 and Sch 1 item 9, applicable in relation to contributions or gifts made on or after 1 July 2008.