INCOME TAX ASSESSMENT ACT 1997
|CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION
|PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS
Div 26 heading substituted by No 121 of 1997.
You cannot deduct political contributions or gifts
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
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.
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
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
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.
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.