INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 30 - Gifts or contributions  

Subdivision 30-A - Deductions for gifts or contributions  

SECTION 30-15   Table of gifts or contributions that you can deduct  

30-15(1)  
You can deduct a gift or contribution that you make in the situations set out in the following table. It tells you:

  • · who the recipient of the gift or contribution can be; and
  • · the type of gift or contribution that you can make; and
  • · how much you can deduct for the gift or contribution; and
  • · any special conditions that apply.
  • 30-15(2)  


    A testamentary gift or contribution is not deductible under this section.
    Note:

    Subdivision 30-DA deals with the deductibility of contributions and gifts to political parties, independent candidates and members.


    Deductible gifts or contributions
    Recipient Type of gift or contribution How much you can deduct Special conditions
    1 A fund, authority or institution covered by an item in any of the tables in Subdivision 30-B. A gift of:
    (a) money; or
    (b) property (including *trading stock) that you purchased during the 12 months before making the gift; or
    (c) an item of your trading stock if:
    · the gift is a disposal of the item outside the ordinary course of your *business; and
    · no election has been made, or is made, in relation to the item under Subdivision 385-E (about electing to spread or defer profit from the forced disposal or death of *live stock); or
    (d) property valued by the Commissioner at more than $5,000; or
    (e) *shares that you have acquired in a *listed public company if:
    · the shares are listed for quotation in the official list of a stock exchange that is listed under the heading " Australia " in regulations made for the purposes of the definition of *approved stock exchange; and
    · the *market value of the shares on the day you made the gift is $5,000 or less; and
    · you acquire the shares at least 12 months before making the gift.
    (a) if the gift is money - the amount you are giving; or
    (b) if the gift is property (except trading stock covered by paragraph (c), property covered by paragraph (d) or shares covered by paragraph (e)) - the lesser of the market value of the property on the day you made the gift and the amount you paid for the property; or
    (c) if the gift is an item of your trading stock:
    · that you disposed of outside the ordinary course of your business; and
    · for which no election has been made, or is made, in relation to the item under Subdivision 385-E;
    the market value of the item on the day you made the gift; or
    (d) if the gift is property valued by the Commissioner at more than $5,000 and you did not purchase the property during the 12 months before making the gift - the value of the property as determined by the Commissioner; or
    (e) if the gift is shares described in paragraph (e) of the previous column - the market value of the shares on the day you made the gift.
    (a) the fund, authority or institution must be in Australia; and
    (aa) the fund, authority or institution must either meet the requirements of section 30-17 or be mentioned by name in the relevant table item in Subdivision 30-B; and
    (b) the value of the gift must be $2 or more; and
    (c) any conditions set out in the relevant table item in Subdivision 30-B must be satisfied; and
    (d) if the property is to be valued by the Commissioner - the requirements of section 30-212 are satisfied.
    2 An *ancillary fund established and maintained under a will or instrument of trust solely for:
    (a) the purpose of providing money, property or benefits:
    · to a fund, authority or institution gifts to which are deductible under item 1 of this table; and
    · for any purposes set out in the item of the table in Subdivision 30-B that covers the fund, authority or institution; or
    (b) the establishment of such a fund, authority or institution.
    A gift of:
    (a) money; or
    (b) property (including *trading stock) that you purchased during the 12 months before making the gift; or
    (c) an item of your trading stock if:
    · the gift is a disposal of the item outside the ordinary course of your *business; and
    · no election has been made, or is made, in relation to the item under Subdivision 385-E (about electing to spread or defer profit from the forced disposal or death of *live stock); or
    (d) property valued by the Commissioner at more than $5,000; or
    (e) *shares that you have acquired in a *listed public company if:
    · the shares are listed for quotation in the official list of a stock exchange that is listed under the heading " Australia " in regulations made for the purposes of the definition of *approved stock exchange; and
    · the *market value of the shares on the day you made the gift is $5,000 or less; and
    · you acquire the shares at least 12 months before making the gift.

    (a) if the gift is money - the amount you are giving; or
    (b) if the gift is property (except trading stock covered by paragraph (c), property covered by paragraph (d) or shares covered by paragraph (e)) - the lesser of the market value of the property on the day you made the gift and the amount you paid for the property; or
    (c) if the gift is an item of your trading stock:
    · that you disposed of outside the ordinary course of your business; and
    · for which no election has been made, or is made, in relation to the item under Subdivision 385-E;
    the market value of the item on the day you made the gift; or
    (d) if the gift is property valued by the Commissioner at more than $5,000 and you did not purchase the property during the 12 months before making the gift - the value of the property as determined by the Commissioner; or
    (e) if the gift is shares described in paragraph (e) of the previous column - the market value of the shares on the day you made the gift.
    (a) the value of the gift must be $2 or more; and
    (b) the terms of the will or trust must allow the trustee to invest money that the ancillary fund receives because of the gift only in a way that an *Australian law allows trustees to invest trust money; and
    (c) the ancillary fund must meet the requirements of section 30-17; and
    (d) if the property is to be valued by the Commissioner - the requirements of section 30-212 are satisfied.
    3 (Repealed by No 65 of 2006)
    4 (a) the Australiana Fund; or
    (b) a public library in Australia; or
    (c) a public museum in Australia; or
    (d) a public art gallery in Australia; or
    (e) an institution in Australia consisting of a public library, a public museum and a public art gallery or any 2 of them.
    A gift of property (except an estate or interest in land or in a building or part of a building). The general rule is that you can deduct the average of the *GST inclusive market values (as reduced under subsection (3) if that subsection applies) specified in the written valuations you get from approved valuers.
    Subdivision 30-C sets out:
    (a) how a person becomes an approved valuer; and
    (b) the exceptions to the general rule; and
    (c) the situations when the amount you can deduct is reduced.
    If the property is jointly owned, see section 30-225 to work out how much of the gift you can deduct.
    (a) the property must be accepted by the recipient for inclusion in a collection it is maintaining or establishing; and
    (b) the value of the gift must be $2 or more; and
    (ba) the institution must meet the requirements of section 30-17, unless it is the Australiana Fund; and
    (c) you must satisfy the valuation requirements in section 30-200, unless section 30-205 (about the proceeds of the sale being assessable) applies.
    5 The Commonwealth (for the purposes of Artbank). A gift of property (except an estate or interest in land or in a building or part of a building). The general rule is that you can deduct the average of the *GST inclusive market values (as reduced under subsection (3) if that subsection applies) specified in the written valuations you get from approved valuers.
    Subdivision 30-C sets out:
    (a) how a person becomes an approved valuer; and
    (b) the exceptions to the general rule; and
    (c) the situations when the amount you can deduct is reduced.
    If the property is jointly owned, see section 30-225 to work out how much of the gift you can deduct.
    (a) the property must be accepted by the Commonwealth for inclusion in a collection maintained, or being established, for the purposes of Artbank; and
    (b) you must satisfy the valuation requirements in section 30-200, unless section 30-205 (about the proceeds of the sale being assessable) applies.
    6 (a) the National Trust of Australia (New South Wales); or
    (b) the National Trust of Australia (Victoria); or
    (c) National Trust of Australia (Queensland) Limited; or
    (d) the National Trust of South Australia; or
    (e) the National Trust of Australia (W.A.); or
    (f) the National Trust of Australia (Tasmania); or
    (g) the National Trust of Australia (Northern Territory); or
    (h) the National Trust of Australia (A.C.T.); or
    (i) the Australian Council of National Trusts.
    A gift of a place included in:
    (a) the National Heritage List, or the Commonwealth Heritage List, under the Environment Protection and Biodiversity Conservation Act 1999 ; or
    (b) the Register of the National Estate under the Australian Heritage Council Act 2003 .
    The general rule is that you can deduct the average of the *GST inclusive market values (as reduced under subsection (3) if that subsection applies) specified in the written valuations you get from approved valuers.
    Subdivision 30-C sets out:
    (a) how a person becomes an approved valuer; and
    (b) the exceptions to the general rule; and
    (c) the situations when the amount you can deduct is reduced.
    If the place is jointly owned, see section 30-225 to work out how much of the gift you can deduct.
    (a) the place must be accepted by the recipient for the purpose of preserving it for the benefit of the public; and
    (b) the value of the gift must be $2 or more; and
    (c) you must satisfy the valuation requirements in section 30-200, unless section 30-205 (about the proceeds of the sale being assessable) applies.
    7 A *deductible gift recipient that is a fund, authority or institution covered by item 1 or 2 of this table. A contribution of:
    (a) money, if the amount is more than $150; or
    (b) property that you purchased during the 12 months before making the contribution, if the lesser of:
    · the *market value of the property on the day you made the contribution; and
    · the amount you paid for the property;
    is more than $150; or
    (c) property valued by the Commissioner at more than $5,000, if you did not purchase the property during the 12 months before making the contribution; or
    (ca) *shares that you have acquired in a *listed public company if:
    · the shares are listed for quotation in the official list of a stock exchange that is listed under the heading " Australia " in regulations made for the purposes of the definition of *approved stock exchange; and
    · the market value of the shares on the day you made the contribution is more than $150 and less than or equal to $5,000; and
    (a) if the contribution is money - the amount of the contribution, reduced by the *GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund-raising event; or
    (b) if the contribution is property that you purchased during the 12 months before making the contribution - the lesser of:
    · the market value of the property on the day you made the contribution; and
    · the amount you paid for the property;
    reduced by the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund-raising event; or
    (c) if the contribution is property valued by the Commissioner at more than $5,000 and you did not purchase the property during the 12 months before making the contribution - the value of the property as determined by the Commissioner, reduced by the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund-raising event; or
    (a) if the contribution is money - the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund-raising event must not exceed the lesser of:
    · 20% of the amount of the contribution; and
    · $150; and
    (b) if the contribution is property that you purchased during the 12 months before making the contribution - the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund-raising event must not exceed the lesser of:
    · 20% of the lesser of the market value of the property on the day you made the contribution and the amount you paid for the property; and
    · $150; and
    (c) if the contribution is property valued by the Commissioner at more than $5,000 and you did not purchase the property during the 12 months before making the contribution - the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund-raising event must not exceed $150; and

    · you acquire the shares at least 12 months before making the contribution;
    where:
    (d) the contribution is not a gift; and
    (e) either:
    · the contribution is made in return for a right permitting you to attend, or participate in, a particular *fund-raising event in Australia; or
    · the contribution is made in return for a right permitting an individual (other than you) to attend, or participate in, a particular fund-raising event in Australia.

    (ca) if the contribution is shares described in paragraph (ca) of the previous column - the market value of the shares on the day you made the contribution, reduced by the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund-raising event.

    (ca) if the contribution is shares described in paragraph (ca) of the column headed " Type of gift or contribution " - the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund-raising event must not exceed the lesser of:
    · 20% of the market value of the shares on the day you made the contribution; and
    · $150; and
    (d) if, instead of making the contribution, you had made a gift of money to the fund, authority or institution, and:
    · the amount of the gift had been more than $2; and
    · the gift had been made for the same purpose for which funds were to be raised by the fund-raising event;
    you could have deducted the gift under item 1 or 2 of this table; and
    (e) you must be an individual; and
    (f) you cannot deduct more than 2 contributions in relation to the same fund-raising event; and
    (g) if the property is to be valued by the Commissioner - the requirements of section 30-212 are satisfied.
    8 A *deductible gift recipient that is a fund, authority or institution covered by item 1 or 2 of this table. A contribution of money, if:
    (a) the amount is more than $150; and
    (b) the contribution is not a gift; and
    (c) you made the contribution by way of consideration for the supply of goods or services; and
    (d) you made the contribution because you were the successful bidder at an auction that:
    · was a particular *fund-raising event in Australia; or
    · was held at a particular fund-raising event in Australia; and
    (e) the amount of the contribution exceeds the *GST inclusive market value, on the day you made the contribution, of the goods or services.
    The amount of the contribution, reduced by the GST inclusive market value, on the day you made the contribution, of the goods or services. (a) the GST inclusive market value, on the day you made the contribution, of the goods or services must not exceed the lesser of:
    · 20% of the amount of the contribution; and
    · $150; and
    (b) if, instead of making the contribution, you had made a gift of money to the fund, authority or institution, and:
    · the amount of the gift had been more than $2; and
    · the gift had been made for the same purpose for which funds were to be raised by the fund-raising event;
    you could have deducted the gift under item 1 or 2 of this table; and
    (c) you must be an individual.

    30-15(3)  


    For the purposes of items 4, 5 and 6 of the table in subsection (2), the * GST inclusive market values of the property or place in question are reduced by 1/11 if you would have been entitled to an * input tax credit if:


    (a) you had * acquired the property or place at the time you made the gift; and


    (b) your acquisition had been for a * creditable purpose.

    30-15(4)  


    For the purposes of item 7 of the table in subsection (2), in working out the * GST inclusive market value of the right in question, disregard anything that would prevent or restrict conversion of the right to money.

    30-15(5)  


    For the purposes of item 8 of the table in subsection (2), in working out the * GST inclusive market value of the goods or services in question, disregard anything that would prevent or restrict conversion of the goods or services to money.

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