Explanatory Memorandum
Circulated By the Authority of the Treasurer, the Hon Wayne Swan MpGeneral outline and financial impact
Political contributions and gifts
This Bill amends the Income Tax Assessment Act 1997 and the Income Tax Assessment Act 1936 to remove tax deductibility for contributions and gifts to political parties, independent members and independent candidates. This Bill also amends the A New Tax System (Goods and Services Tax) Act 1999 to ensure that the goods and services tax treatment of these entities is not affected by the income tax amendments.
Date of effect : This measure applies to contributions and gifts made on or after 1 July 2008 as announced in the 2008-09 Budget.
Proposal announced : The Government made an election commitment to remove tax deductibility for political donations in Labor's $ 3 Billion Savings Plan announced on 2 March 2007.
Financial impact : This measure will have these revenue implications:
| 2008 - 09 | 2009 - 10 | 2010 - 11 | 2011 - 12 |
| - | $10.1m | $10.3m | $11.0m |
Compliance cost impact : Low.