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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1013033146969

Date of advice: 13 June 2016

Ruling

Subject: Deductibility of fundraising expenses

Question

Are you entitled to claim a deduction for expenses incurred to raise money for a charity?

Answer

No.

This ruling applies for the following periods

Year ending 30 June 2016

Year ending 30 June 2017

Year ending 30 June 2018

Year ending 30 June 2019

The scheme commences on

1 July 2015

Relevant facts and circumstances

You participate in a fundraiser event for a deductible gift recipient (DGR).

You purchased and fitted out a vehicle which is used for the sole purpose of raising funds for the DGR.

You have incurred costs in preparing the vehicle and running costs during the event.

Relevant legislative provisions

Income Tax Assessment Act 1997 Division 30

Reasons for decision

Section 30-15 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that non-testamentary gifts (to the value of $2 or more) made to a DGR that can be deductible include:

You can claim a deduction for contributions to approved organisations that relate to fund-raising events where you received a minor benefit for your contribution, provide that:

To be deductible, your contribution must meet all of the following requirements:

In your case, you did not gift money directly to DGR instead you paid the expenses to prepare and operate a vehicle used in a fundraising event. These expenses are not part of a contribution to the DGR for the right to participate in the event. You do not satisfy the conditions of section 30-15 of the ITAA 1997 as you did not donate money or property to the DGR.

Therefore, you are not entitled to a deduction for expenses paid to purchase, outfit and operate your vehicle as part of the event.


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