Supplementary Explanatory Memorandum
Circulated By the Authority of the Treasurer, the Hon Wayne Swan MPGeneral outline and financial impact
Amendments to the Tax Laws Amendment (Political Contributions and Gifts) Bill 2008
These amendments will maintain the effect of the existing law for individuals who make a political gift or contribution, but not those individuals who make the gift or contribution in the course of carrying on a business. Those non-business individuals will continue to be able to claim a deduction for political gifts or contributions up to $1,500.
These amendments have the effect of adjusting the Bill so that it only removes deductions for political donations made by businesses or made by individuals in the course of carrying on a business.
Date of effect : The amendments apply from the beginning of the 2008-09 income year.
Proposal announced : Not previously announced.
Financial impact : The amendments have the following revenue impact:
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | 2011-12 |
| Nil | Nil | -$6.5m | -$6.6m | -$7.2m |
Compliance cost impact : Nil.