Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 26.30

  (1)   You cannot deduct under this Act a loss or outgoing you incur, insofar as it is attributable to your * relative's travel, if:

  (a)   you travelled in the course of performing your duties as an employee, or in the course of carrying on a * business for the purpose of gaining or producing your assessable income; and

  (b)   your relative accompanied you while you travelled.

Exception to subsection   (1)

  (2)   Subsection   (1) does not stop you deducting a loss or outgoing if:

  (a)   your * relative, while accompanying you, performed substantial duties as your employer's employee, or as your employee; and

  (b)   it is reasonable to conclude that your relative would still have accompanied you even if he or she had not had a personal relationship with you.

Exception when you provide a fringe benefit

  (3)   Subsection   (1) does not stop you deducting expenditure you incur in * providing a * fringe benefit.

This section also applies to individuals who are not employees

  (4)   If an individual is not an employee, but receives, or is entitled to receive, * withholding payments covered by subsection   (6), this section applies to the individual as if:

  (a)   he or she were an employee; and

  (b)   the entity, who pays (or is liable to pay) * withholding payments covered by subsection   (6) that result in the individual being in receipt of, or entitled to receive, such payments, were the individual's employer; and

  (c)   any other individual who receives (or is entitled to receive) * withholding payments covered by subsection   (6):

  (i)   that result in that other individual being in receipt of, or entitled to receive, such payments; and

  (ii)   that the entity pays (or is liable to pay) to that other individual;

    were an employee of the entity.

This section also applies to entities who are not employers

  (5)   If an entity is not an employer, but pays (or is liable to pay) * withholding payments covered by subsection   (6), this section applies to the entity as if:

  (a)   it were an employer; and

  (b)   an individual to whom the entity pays (or is liable to pay) such withholding payments were the entity's employee.

Withholding payments covered

  (6)   This subsection covers:

  (a)   a * withholding payment covered by any of the provisions in Schedule   1 to the Taxation Administration Act 1953 listed in the table; and

  (b)   a withholding payment covered by section   12 - 47 in Schedule   1 to the Taxation Administration Act 1953 where:

  (i)   the payment is made to a religious practitioner by a religious institution; and

  (ii)   the activity, or series of activities, for which the payment is made is done by the religious practitioner as a member of the religious institution.