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Taxation Determination

TD 92/114

Income Tax: are membership subscriptions to political parties deductible under paragraph 78(1)(aaa)?

  • Please note that the PDF version is the authorised version of this ruling.

FOI status:

may be releasedFOI number: I 1212788

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, the Determination applies to transactions entered into both before and after its date of issue.

1. Yes. Paragraph 78(1)(aaa) of the Income Tax Assessment Act 1936 allows deductions for contributions to registered political parties within the meaning of the Commonwealth Electoral Act 1918 . We consider that the word 'contributions' includes membership subscriptions paid to registered political parties.

2. Deductibility of contributions is subject to the following provisos:

i.
contributions eligible for deduction are those made on or after 1 July 1991;
ii.
subsection 51(7A) limits the total amount deductible in any income year to $100;
iii.
a contribution has to be of the value of $2 or more - if a contribution is made by way of property other than money, the taxpayer making the contribution must have purchased the property within the 12 months before making the contribution;
iv.
a contribution can not be a testamentary contribution; and
v.
a contributor can not be a company.

Commissioner of Taxation
09/07/92

References

ATO references:
NO 92/1615-4

ISSN 1038 - 3158

Subject References:
subscriptions;
political parties

Legislative References:
ITAA 51(7A),
ITAA 78(1)(aaa)


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