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This is a Bill, not an Act. For current law, see the Acts databases.


TAX LAWS AMENDMENT (POLITICAL CONTRIBUTIONS AND GIFTS) BILL 2008

2008
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax Laws Amendment (Political
Contributions and Gifts) Bill 2008
No. , 2008
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for related purposes
i Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008
Contents
1
Short title ............................................................................................ 1
2
Commencement .................................................................................. 1
3
Schedule(s) ......................................................................................... 1
Schedule 1--Political contributions and gifts
3
A New Tax System (Goods and Services Tax) Act 1999
3
Income Tax Assessment Act 1936
7
Income Tax Assessment Act 1997
7
Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008 1
A Bill for an Act to amend the law relating to
1
taxation, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Tax Laws Amendment (Political
5
Contributions and Gifts) Act 2008.
6
2 Commence ment
7
This Act commences on the day on which it receives the Royal
8
Assent.
9
3 Schedule(s)
10
Each Act that is specified in a Schedule to this Act is amended or
11
repealed as set out in the applicable items in the Schedule
12
2 Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008
concerned, and any other item in a Schedule to this Act has effect
1
according to its terms.
2
3
Political contributions and gifts Schedule 1
Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008 3
1
Schedule 1
--
Political contributions and gifts
2
3
A New Tax System (Goods and Services Tax) Act 1999
4
1 Amendments of the A New Tax System (Goods and
5
Services Tax) Act 1999
6
The provisions of the A New Tax System (Goods and Services Tax) Act
7
1999 listed in the table are amended as set out in the table.
8
Amendments
Item Provision
Omit:
Substitute:
1
Paragraph 38-250(1)(a)
*
gift-deductible entity
*
concessional entity
2
Paragraph 38-250(2)(a)
*
gift-deductible entity
*
concessional entity
3
Subsection 38-250(3)
(examp le)
gift-deductible entity
concessional entity
4
Subsection 38-250(4)
*
gift-deductible entity
*
concessional entity
5
Subsection 38-250(4)
(note)
gift-deductible entities
concessional entities
6
Paragraph 38-255(1)(a)
*
gift-deductible entity
*
concessional entity
7
Paragraph 38-255(1)(b)
gift-deductible entity
concessional entity
8
Subsection 38-255(1)
gift-deductible entity
(last occurring)
concessional entity
9
Subsection 38-255(2)
(examp le)
gift-deductible entity
concessional entity
10
Subsection 38-255(3)
*
gift-deductible entity
*
concessional entity
11
Subsection 38-255(3)
(note)
gift-deductible entities
concessional entities
12
Paragraph 38-270(1)(a)
*
gift-deductible entity
*
concessional entity
13
Subsection 38-270(2)
(examp le)
gift-deductible entity
concessional entity
14
Subsection 38-270(3)
*
gift-deductible entity
*
concessional entity
15
Subsection 38-270(3)
(note)
gift-deductible entities
concessional entities
16
Paragraph 40-160(1)(a)
*
gift-deductible entity
*
concessional entity
17
Subsection 40-160(2)
(examp le)
gift-deductible entity
concessional entity
Schedule 1 Po litical contributions and gifts
4 Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008
Amendments
Item Provision
Omit:
Substitute:
18
Subsection 40-160(3)
*
gift-deductible entity
*
concessional entity
19
Subsection 40-160(3)
(note)
gift-deductible entities
concessional entities
20
Subparagraph
48-15(1)(e)(iii)
*
gift-deductible entity
*
concessional entity
21
Subsection 48-15(1AA)
(examp le)
gift-deductible entity
concessional entity
22
Paragraph 63-5(2)(aa)
*
gift-deductible entity
*
concessional entity
23
Subsection 63-5(3)
(examp le)
gift-deductible entity
concessional entity
24
Paragraph 111-18(1)(a)
*
gift-deductible entity
*
concessional entity
25
Subsection 111-18(1)
gift-deductible entity
(second, third and
fourth occurring)
concessional entity
26
Subsection 111-18(2)
(examp le)
gift-deductible entity
concessional entity
27
Subsection 111-18(3)
*
gift-deductible entity
*
concessional entity
28
Subsection 111-18(3)
(note)
gift-deductible entities
concessional entities
29
Section 129-45 (heading)
129-45 Gifts to
gift-deductible
entities
129-45 Gifts to
concessional entities
30
Subsection 129-45(1)
*
gift-deductible entity
*
concessional entity
31
Subsection 129-45(2)
(examp le)
gift-deductible entity
concessional entity
32
Subsection 129-45(3)
*
gift-deductible entity
*
concessional entity
33
Subsection 129-45(3)
(note)
gift-deductible entities
concessional entities
34
Section 157-1
gift-deductible entity
concessional entity
35
Subsection 157-5(1)
*
gift-deductible entity
*
concessional entity
36
Subsection 157-5(2)
(examp le)
gift-deductible entity
concessional entity
37
Subsection 157-5(3)
*
gift-deductible entity
*
concessional entity
38
Subsection 157-5(3)
(note)
gift-deductible entities
concessional entities
Political contributions and gifts Schedule 1
Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008 5
Amendments
Item Provision
Omit:
Substitute:
39
Subsection 157-10(1)
*
gift-deductible entity
*
concessional entity
40
Subsection 157-10(2)
(examp le)
gift-deductible entity
concessional entity
41
Subsection 157-10(3)
*
gift-deductible entity
*
concessional entity
42
Subsection 157-10(3)
(note)
gift-deductible entities
concessional entities
2 Section 195-1
1
Insert:
2
Australian legislature has the same meaning as in the Income Tax
3
Assessment Act 1997.
4
3 Section 195-1
5
Insert:
6
concessional entity means:
7
(a) an entity, gifts or contributions to which can be deductible
8
under Division 30 of the Income Tax Assessment Act 1997; or
9
(b) a political party that is registered under Part XI of the
10
Commonwealth Electoral Act 1918 or under a corresponding
11
*
State law or
*
Territory law; or
12
(c) an
*
independent candidate; or
13
(d) an
*
independent member.
14
4 Section 195-1 (definition of gift-deductible entity)
15
Repeal the definition.
16
5 Section 195-1
17
Insert:
18
independent candidate: an individual is an independent candidate
19
at a time if, at that time:
20
(a) the individual's candidature in an election for members of an
21
*
Australian legislature has been declared or otherwise
22
publicly announced by an entity authorised under the relevant
23
electoral legislation; and
24
Schedule 1 Po litical contributions and gifts
6 Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008
(b) the individual's candidature is not endorsed by a political
1
party that is registered under Part XI of the Commonwealth
2
Electoral Act 1918 or under a corresponding
*
State law or
3
*
Territory law; and
4
(c) the earliest of these has not occurred:
5
(i) the time when the result of the election is declared or
6
otherwise publicly announced by an entity authorised
7
under the relevant electoral legislation; and
8
(ii) the time (if any) when the individual's intention to no
9
longer be a candidate for the election is publicly
10
available; and
11
(iii) the time (if any) when, after the election is taken to have
12
wholly failed under the relevant electoral legislation,
13
candidates for the replacement election are declared or
14
otherwise publicly announced by an entity authorised
15
under that legislation.
16
6 Section 195-1
17
Insert:
18
independent member: an individual is an independent member at
19
a time if, at that time:
20
(a) one of the following applies:
21
(i) the individual is a member of an
*
Australian legislature;
22
(ii) the individual's election as a member of an Australian
23
legislature (including as a result of an election that is
24
later declared void) has been declared or otherwise
25
publicly announced by an entity authorised under the
26
relevant electoral legislation, in a case where the
27
individual has not yet started serving as such a member;
28
(iii) the individual has ceased to be a member of an
29
Australian legislature because the legislature, or a house
30
of the legislature, is dissolved or has reached its
31
maximum duration, because the individual comes up for
32
election or because the relevant election has been
33
declared void, in a case where candidates for the
34
resulting election have not yet been declared or
35
otherwise publicly announced by an entity authorised
36
under the relevant electoral legislation; and
37
Political contributions and gifts Schedule 1
Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008 7
(b) the individual is not a member of a political party that is
1
registered under Part XI of the Commonwealth Electoral Act
2
1918 or under a corresponding
*
State law or
*
Territory law.
3
Income Tax Assessment Act 1936
4
7 Subsections 78A(2), (3) and (4)
5
Omit "fund, authority, institution or person" (wherever occurring),
6
substitute "fund, authority or institution".
7
Income Tax Assessment Act 1997
8
8 Section 12-
5 (table item headed "political parties")
9
Repeal the item, substitute:
10
political contributions and gifts
deductions for ............................................................................ 26-22
9 After section 26-20
11
Insert:
12
26-22 Political contributions and gifts
13
You cannot deduct political contributions or gifts
14
(1) You cannot deduct under this Act:
15
(a) a contribution (including a membership fee) or gift to a
16
political party that is registered under Part XI of the
17
Commonwealth Electoral Act 1918 or under corresponding
18
State or Territory legislation; or
19
(b) a contribution or gift to an individual when the individual is a
20
candidate in an election for members of:
21
(i) an
*
Australian legislature; or
22
(ii) a
*
local governing body; or
23
(c) a contribution or gift to an individual who is a member of:
24
(i) an Australian legislature; or
25
(ii) a local governing body.
26
Schedule 1 Po litical contributions and gifts
8 Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008
Exception for employees and office holders
1
(2) However, subsection (1) does not apply to a loss or outgoing
2
incurred in gaining or producing assessable income from which an
3
amount is required to be withheld under section 12-35 or 12-45 in
4
Schedule 1 to the Taxation Administration Act 1953.
5
Note:
These provisions of the Taxation Administration Act 1953 require
6
amounts to be withheld from income of employees and office holders.
7
Starting and stopping being a candidate
8
(3) For the purposes of this section, an individual:
9
(a) starts being a candidate when the individual's intention to be
10
or to attempt to be a candidate for the election is publicly
11
available; and
12
(b) stops being a candidate at the earlier of:
13
(i) the time when the result of the election is declared or
14
otherwise publicly announced by an entity (an electoral
15
official) authorised under the relevant electoral
16
legislation; and
17
(ii) the time (if any) when the individual's intention to no
18
longer be a candidate for the election is publicly
19
available.
20
Starting being a member
21
(4) An individual who becomes a member as a result of an election
22
(including an election that is later declared void) is taken to start
23
being a member when the individual's election as a member is
24
declared or otherwise publicly announced by an electoral official.
25
10 Subsection 30-5(1)
26
Omit "a contribution or gift to a political party, independent candidate
27
or member, or".
28
11 Subsection 30-5(1) (note 1)
29
Omit "Note 1", substitute "Note".
30
12 Subsection 30-5(1) (note 2)
31
Repeal the note.
32
Political contributions and gifts Schedule 1
Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008 9
13 Subsection 30-15(2) (note 1)
1
Omit "Note 1", substitute "Note".
2
14 Subsection 30-15(2) (note 2)
3
Repeal the note.
4
15 Subdivision 30-DA
5
Repeal the Subdivision.
6
16 Subsection 30-315(2) (table item 87)
7
Repeal the item.
8
17 At the end of section 110-38
9
Add:
10
(6) Expenditure does not form part of any element of the cost base to
11
the extent that section 26-22 prevents it being deducted.
12
Note:
Section 26-22 denies deductions for political contributions and gifts.
13
18 After subsection 110-55(9E)
14
Insert:
15
(9F) Expenditure does not form part of the reduced cost base to the
16
extent that section 26-22 prevents it being deducted.
17
Note:
Section 26-22 denies deductions for political contributions and gifts.
18
19 Subsection 995-1(1) (definition of independent candidate)
19
Repeal the definition.
20
20 Subsection 995-1(1) (definition of independent member)
21
Repeal the definition.
22
21 Application
23
The amendments made by this Schedule apply in relation to
24
contributions or gifts made on or after 1 July 2008.
25

 


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