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.