Non-Profit News Service No. 0270 - Political donations: legislation passed

On 25 February 2010, Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 was passed by the Senate and is now awaiting royal assent.

The Assistant Treasurer has also issued a media release regarding the amendments in the Bill - see No. 030 Removing Tax Deductibility for Political Donations

The Bill amends the tax law to remove the tax deductibility for businesses making contributions and gifts to political parties, members and candidates. This includes individuals who make the contribution or gift in the course of carrying on a business. Non-business individuals will continue to be able to claim a deduction for political gifts and contributions up to $1,500.

The amendments are retrospective and will apply from 1 July 2008.

We previously advised of the reforms in:

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Last Modified: Wednesday, 3 March 2010