Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

The Treasurer has provided the following answer to the honourable senator's question:

In the situation described, it is unlikely that a company or individual would be eligible for a tax deduction for the cost of the flight.

Amendments to the Income Tax Assessment Act 1997 effective from 1 July 2008 removed:

Political contributions and gifts made on or after 1 July 2008 must meet several requirements to be tax deductible under subdivision 30-DA of the Income Tax Assessment Act 1997.

The donor must be an individual and the contribution or gift must not be made in the course of carrying on a business.

The recipient must be:

Commonwealth Electoral Act1918

Even if the contribution or gift is made by an individual in their personal capacity and not made in the course of carrying on a business, there are other requirements that would not be met in this case. The contribution or gift must be $2 or more, and be:

To be tax deductible under this subdivision, there must be a transfer of money or property. Therefore there is no deduction for the gift of a service, for example, the use of a private plane as neither money nor property has been transferred. If however property has been transferred as part of providing the service, a deduction may be allowed in relation to the property.

If it could be ascertained that some property was donated, the most that contributors or donors may claim in an income year is:

Only employees or office holders may claim deductions for political contributions incurred in earning assessable income as a general deduction.