Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) You cannot deduct under this Act a loss or outgoing to the extent you incur it to obtain or maintain:
(a) membership of a * recreational club; or
(b) rights to enjoy (otherwise than as a * member) facilities provided by a * recreational club for the use or benefit of its * members;
whether for yourself or someone else.
Meaning of recreational club
(2) A recreational club is a company that was established or is carried on mainly to provide facilities, for the use or benefit of its * members, for drinking, dining, * recreation or entertainment.
Exception when you provide a fringe benefit
(3) Subsection (1) does not stop you deducting expenditure you incur in * providing a * fringe benefit.