Commonwealth Consolidated Acts Commonwealth Consolidated ActsPart 1 -- Insertion of new Subdivision 30 - DA in the Income Tax Assessment Act 1997
1 After Subdivision 30 - D
Insert:
Subdivision 30 - DA -- Donations to political parties and independent candidates and members
30 - 241 What this Subdivision is about
Generally, you can deduct certain contributions and gifts to political parties, independent candidates and members.
Contributions and gifts must be at least $2 and there is a limit on the total amount that you can deduct.
Table of sections
Operative provisions
30 - 242 Deduction for political contributions and gifts
30 - 243 Amount of the deduction
30 - 244 When an individual is an independent candidate
30 - 245 When an individual is an independent member
30 - 242 Deduction for political contributions and gifts
(1) You can deduct any of the following for the income year in which they are made:
(a) a contribution 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;
(b) a contribution or gift to an individual when the individual is an * independent candidate for a Commonwealth, State, Northern Territory or Australian Capital Territory election;
(c) a contribution or gift to an individual who is, or was, an * independent member of the Commonwealth Parliament, a State Parliament, the Legislative Assembly of the Northern Territory or the Legislative Assembly for the Australian Capital Territory.
(2) The contribution or gift must be of:
(a) money; or
(b) property that you purchased during the 12 months before making the contribution or gift.
(3) The value of the contribution or gift must be at least $2.
(4) You cannot deduct a testamentary contribution or gift under this Subdivision.
(5) A contribution or gift to an individual who is, or was, an * independent member must be made:
(a) when the individual is an independent member; or
(b) if the individual ceases to be an independent member because:
(i) a Parliament, a House of a Parliament or a Legislative Assembly is dissolved or has reached its maximum duration; or
(ii) the individual comes up for election;
after the individual ceases to be a member but before candidates for the resulting election are declared or otherwise publicly announced by an entity authorised under the relevant electoral legislation.
30 - 243 Amount of the deduction
(1) If the contribution or gift is money, the amount of the deduction is the amount of money.
(2) If the contribution or gift is property, the amount of the deduction is the lesser of:
(a) the market value of the property on the day that you made the contribution or gift; and
(b) the amount that you paid for the property.
$1,500 limit on deductions
(3) You cannot deduct more than $1,500 under this Subdivision for an income year for contributions and gifts to political parties.
(4) You cannot deduct more than $1,500 under this Subdivision for an income year for contributions and gifts to * independent candidates or * independent members.
30 - 244 When an individual is an independent candidate
(1) An individual is an independent candidate if:
(a) the individual is a candidate in an election (including an election that is later declared void) for members of the Commonwealth Parliament, a State Parliament, the Legislative Assembly of the Northern Territory or the Legislative Assembly for the Australian Capital Territory; and
(b) the individual's candidature is not endorsed by a political party that is registered under Part XI of the Commonwealth Electoral Act 1918 or under corresponding State or Territory legislation.
(2) However, an individual does not start being an * independent candidate until the candidates for the election are declared or otherwise publicly announced by an entity authorised under the relevant electoral legislation.
(3) An individual stops being an * independent candidate when the result of the election is declared or otherwise publicly announced by an entity authorised under the relevant electoral legislation.
(4) If:
(a) the election is taken to have wholly failed under the relevant electoral legislation; and
(b) the result of the election has not been declared or otherwise publicly announced by an entity authorised under the relevant electoral legislation;
the individual stops being an * independent candidate in that election when candidates for the replacement election are declared or otherwise publicly announced by an entity authorised under the relevant electoral legislation.
30 - 245 When an individual is an independent member
(1) An individual is an independent member of the Commonwealth Parliament, a State Parliament, the Legislative Assembly of the Northern Territory or the Legislative Assembly for the Australian Capital Territory if the individual:
(a) is a member of that Parliament or Legislative Assembly; and
(b) the individual is not a member of a political party that is registered under Part XI of the Commonwealth Electoral Act 1918 or under corresponding State or Territory legislation.
(2) 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 of the Parliament or Legislative Assembly when the individual's election as a member is declared or otherwise publicly announced by an entity authorised under the relevant electoral legislation.
Part 2 -- Further amendment of the Income Tax Assessment Act 1997
2 Subsection 30 - 5(1)
After "making", insert "a contribution or gift to a political party, independent candidate or member, or ".
3 Subsection 30 - 5(1) (note)
Repeal the note, substitute:
Note 1: Subdivision 30 - D deals with the deductibility of testamentary gifts under the Cultural Bequests Program.
Note 2: Subdivision 30 - DA deals with the deductibility of contributions and gifts to political parties, independent candidates and members.
4 Subsection 30 - 15(2) (note)
Omit "Note", substitute "Note 1".
5 Subsection 30 - 15(2) (after note 1)
Insert:
Note 2: Subdivision 30 - DA deals with the deductibility of contributions and gifts to political parties, independent candidates and members.
6 Subsection 30 - 15(2) (table item 3)
Repeal the item.
7 Subsection 30 - 315(2) (table item 87)
Omit "contributions", substitute "parties and independent candidates and members".
8 Subsection 30 - 315(2) (table item 87)
Omit "item 3 of the table in section 30 - 15", substitute "Subdivision 30 - DA".
9 Subsection 995 - 1(1)
Insert:
"independent candidate" has the meaning given by section 30 - 244.
10 Subsection 995 - 1(1)
Insert:
"independent member" has the meaning given by section 30 - 245.
Part 3 -- Amendment of the Income Tax Assessment Act 1936
11 Subsections 78A(2), (3) and (4)
Omit "fund, authority or institution" (wherever occurring), substitute "fund, authority, institution or person".
Part 4 -- Application of amendments
12 Application
The amendments made by this Schedule apply to contributions or gifts made on or after the day on which this Act receives the Royal Assent.
[ Minister's second reading speech made in--
House of Representatives on 8 December 2005
Senate on 13 June 2006 ]
(185/05)