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This is a Bill, not an Act. For current law, see the Acts databases.
1996-97-98
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Taxation Laws
Amendment (Political Donations) Bill
1998
No. ,
1998
(Treasury)
A Bill
for an Act to amend the law relating to taxation
Contents
Part 1—Insertion of new Subdivision 30-DA in the Income Tax
Assessment Act 1997 8tlapdh1.html
Part 2—Further amendment of the Income Tax Assessment Act
1997 8tlapdh1.html
Part 3—Amendment of the Income Tax Assessment Act
1936 8tlapdh1.html
Part 4—Application of amendments 8tlapdh1.html
A Bill for an Act to amend the law relating to
taxation
The Parliament of Australia enacts:
This Act may be cited as the Taxation Laws Amendment (Political
Donations) Act 1998.
This Act commences on the day on which it receives the Royal
Assent.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
Part
1—Insertion of new
Subdivision 30-DA in the Income Tax Assessment Act 1997
1 After Subdivision 30-D
Insert:
You can deduct certain contributions to political parties and gifts to
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 a person is an independent
candidate
30-245 When a person is an independent
member
[This is the end of the Guide.]
(1) You can deduct any of the following for the income year in which they
are made:
(a) a contribution 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 gift to a person when the person is an
*independent candidate for a Commonwealth,
State, Northern Territory or Australian Capital Territory election;
(c) a gift to a person 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 gift to a person who is, or was, an
*independent member must be made:
(a) when the person is an independent member; or
(b) if the person 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 person comes up for election;
after the person ceases to be a member but before candidates for the
resulting election are declared or otherwise publicly announced by a person
authorised under the relevant electoral legislation.
(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 to political parties.
(4) You cannot deduct more than $1,500 under this Subdivision for an
income year for gifts to *independent
candidates or *independent members.
(1) A person is an independent candidate if:
(a) the person 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 person’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, a person does not start being an
*independent candidate until the candidates for
the election are declared or otherwise publicly announced by a person authorised
under the relevant electoral legislation.
(3) A person stops being an *independent
candidate when the result of the election is declared or otherwise publicly
announced by a person 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 a person authorised under the relevant electoral
legislation;
the person stops being an *independent
candidate in that election when candidates for the replacement election are
declared or otherwise publicly announced by a person authorised under the
relevant electoral legislation.
(1) A person 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 person:
(a) is a member of that Parliament or Legislative Assembly; and
(b) the person 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) A person 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 person’s election as a member
is declared or otherwise publicly announced by a person 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 to a political
party, a gift to an independent candidate or member or”.
3 Subsection 30-5(1) (note)
Repeal the note, substitute:
Note: Subdivision 30-D deals with the deductibility of
testamentary gifts under the Cultural Bequests Program and Subdivision 30-DA
deals with the deductibility of contributions to political parties and gifts to
independent candidates and members.
4 Subsection 30-5(2)
Omit “and contributions”.
5 Subsection 30-5(2)
Omit “or contribution”.
6 Subdivision 30-A
(heading)
Omit “or contributions”.
7 Subsection 30-15(1)
Omit “or contribution” (wherever occurring).
Note: The heading to section 30-15 is altered by omitting
“or contributions”.
8 Subsection 30-15(2)
Omit “or contribution” (wherever occurring).
9 Subsection 30-15(2)
(note)
Number the note as note 1.
10 Subsection 30-15(2) (after note
1)
Insert:
Note 2: Subdivision 30-DA deals with the deductibility of
contributions to political parties and gifts to independent candidates and
members.
11 Subsection 30-15(2) (table
heading)
Omit “or contributions”.
12 Subsection 30-15(2) (table item
3)
Repeal the item.
13 Subsection 30-315(2) (table item
87)
Omit “contributions”, substitute “parties and independent
candidates and members”.
14 Subsection 30-315(2) (table item
87)
Omit “item 3 of the table in section 30-15”, substitute
“Subdivision 30-DA”.
15 Subsection 995-1(1)
Insert:
independent candidate has the meaning given by section
30-244.
16 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
17 Subsections 78A(2), (3) and
(4)
Omit “fund, authority or institution” (wherever occurring),
substitute “fund, authority, institution or person”.
Part
4—Application of
amendments
18 Application
The amendments made by this Schedule apply to contributions or gifts made
on or after 1 July 1998.