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



Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008

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

Schedule 1 Political contributions and gifts


Political contributions and gifts Schedule 1



Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008

Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008

Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 No. , 2008
A Bill for an Act to amend the law relating to taxation, and for related purposes
The Parliament of Australia enacts:

 

1 Short title

This Act may be cited as the Tax Laws Amendment (Political Contributions and Gifts) Act 2008.

 

2 Commencement

This Act commences on the day on which it receives the Royal Assent.

 

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1--Political contributions and gifts

A New Tax System (Goods and Services Tax) Act 1999

 

1 Amendments of the A New Tax System (Goods and Services Tax) Act 1999
The provisions of the A New Tax System (Goods and Services Tax) Act 1999 listed in the table are amended as set out in the table.

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) (example)
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) (example)
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) (example)
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) (example)
gift-deductible entity
concessional entity

 

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) (example)
gift-deductible entity
concessional entity

 

22
Paragraph 63-5(2)(aa)
*gift-deductible entity
*concessional entity

 

23
Subsection 63-5(3) (example)
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) (example)
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) (example)
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) (example)
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

 

39
Subsection 157-10(1)
*gift-deductible entity
*concessional entity

 

40
Subsection 157-10(2) (example)
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
Insert:

Australian legislature has the same meaning as in the Income Tax Assessment Act 1997.

 

3 Section 195-1
Insert:

concessional entity means:

        (a)   an entity, gifts or contributions to which can be deductible under Division 30 of the Income Tax Assessment Act 1997; or

        (b)   a political party that is registered under Part XI of the Commonwealth Electoral Act 1918 or under a corresponding *State law or *Territory law; or

        (c)   an *independent candidate; or

        (d)   an *independent member.

 

4 Section 195-1 (definition of gift-deductible entity)
Repeal the definition.

 

5 Section 195-1
Insert:

independent candidate: an individual is an independent candidate at a time if, at that time:

        (a)   the individual's candidature in an election for members of an *Australian legislature has been declared or otherwise publicly announced by an entity authorised under the relevant electoral legislation; 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 a corresponding *State law or *Territory law; and

        (c)   the earliest of these has not occurred:

        (i)   the time when the result of the election is declared or otherwise publicly announced by an entity authorised under the relevant electoral legislation; and

        (ii)   the time (if any) when the individual's intention to no longer be a candidate for the election is publicly available; and

(iii) the time (if any) when, after the election is taken to have wholly failed under the relevant electoral legislation, candidates for the replacement election are declared or otherwise publicly announced by an entity authorised under that legislation.

 

6 Section 195-1
Insert:

independent member: an individual is an independent member at a time if, at that time:

        (a)   one of the following applies:

        (i)   the individual is a member of an *Australian legislature;

        (ii)   the individual's election as a member of an Australian legislature (including as a result of an election that is later declared void) has been declared or otherwise publicly announced by an entity authorised under the relevant electoral legislation, in a case where the individual has not yet started serving as such a member;

(iii) the individual has ceased to be a member of an Australian legislature because the legislature, or a house of the legislature, is dissolved or has reached its maximum duration, because the individual comes up for election or because the relevant election has been declared void, in a case where candidates for the resulting election have not yet been declared or otherwise publicly announced by an entity authorised under the relevant electoral legislation; 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 a corresponding *State law or *Territory law.

Income Tax Assessment Act 1936

 

7 Subsections 78A(2), (3) and (4)
Omit "fund, authority, institution or person" (wherever occurring), substitute "fund, authority or institution".

Income Tax Assessment Act 1997

 

8 Section 12-5 (table item headed "political parties")
Repeal the item, substitute:

political contributions and gifts


deductions for

 

26-22

 

9 After section 26-20
Insert:

 

26-22 Political contributions and gifts
You cannot deduct political contributions or gifts

    (1) You cannot deduct under this Act:

        (a)   a contribution (including a membership fee) 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; or

        (b)   a contribution or gift to an individual when the individual is a candidate in an election for members of:

        (i)   an *Australian legislature; or

        (ii)   a *local governing body; or

        (c)   a contribution or gift to an individual who is a member of:

        (i)   an Australian legislature; or

        (ii)   a local governing body.

Exception for employees and office holders

    (2) However, subsection (1) does not apply to a loss or outgoing incurred in gaining or producing assessable income from which an amount is required to be withheld under section 12-35 or 12-45 in Schedule 1 to the Taxation Administration Act 1953.

Note: These provisions of the Taxation Administration Act 1953 require amounts to be withheld from income of employees and office holders.

Starting and stopping being a candidate

    (3) For the purposes of this section, an individual:

        (a)   starts being a candidate when the individual's intention to be or to attempt to be a candidate for the election is publicly available; and

        (b)   stops being a candidate at the earlier of:

        (i)   the time when the result of the election is declared or otherwise publicly announced by an entity (an electoral official) authorised under the relevant electoral legislation; and

        (ii)   the time (if any) when the individual's intention to no longer be a candidate for the election is publicly available.

Starting being a member

    (4) 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 when the individual's election as a member is declared or otherwise publicly announced by an electoral official.

 

10 Subsection 30-5(1)
Omit "a contribution or gift to a political party, independent candidate or member, or".

 

11 Subsection 30-5(1) (note 1)
Omit "Note 1", substitute "Note".

 

12 Subsection 30-5(1) (note 2)
Repeal the note.

 

13 Subsection 30-15(2) (note 1)
Omit "Note 1", substitute "Note".

 

14 Subsection 30-15(2) (note 2)
Repeal the note.

 

15 Subdivision 30-DA
Repeal the Subdivision.

 

16 Subsection 30-315(2) (table item 87)
Repeal the item.

 

17 At the end of section 110-38
Add:

    (6) Expenditure does not form part of any element of the cost base to the extent that section 26-22 prevents it being deducted.

Note: Section 26-22 denies deductions for political contributions and gifts.

 

18 After subsection 110-55(9E)
Insert:

(9F) Expenditure does not form part of the reduced cost base to the extent that section 26-22 prevents it being deducted.

Note: Section 26-22 denies deductions for political contributions and gifts.

 

19 Subsection 995-1(1) (definition of independent candidate)
Repeal the definition.

 

20 Subsection 995-1(1) (definition of independent member)
Repeal the definition.

 

21 Application
The amendments made by this Schedule apply in relation to contributions or gifts made on or after 1 July 2008.

 

---

[Index] [Search] [Download] [Related Items] [Help]