Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 26 - Some amounts you cannot deduct, or cannot deduct in full  

Operative provisions  

SECTION 26-30   Relative ' s travel expenses  

26-30(1)    
You cannot deduct under this Act a loss or outgoing you incur, insofar as it is attributable to your ^* relative ' s travel, if:

(a) you travelled in the course of performing your duties as an employee, or in the course of carrying on a ^* business for the purpose of gaining or producing your assessable income; and

(b) your relative accompanied you while you travelled.

Exception to subsection (1)

26-30(2)    
Subsection (1) does not stop you deducting a loss or outgoing if:

(a) your ^* relative, while accompanying you, performed substantial duties as your employer ' s employee, or as your employee; and

(b) it is reasonable to conclude that your relative would still have accompanied you even if he or she had not had a personal relationship with you.

Exception when you provide a fringe benefit

26-30(3)    
Subsection (1) does not stop you deducting expenditure you incur in ^* providing a ^* fringe benefit.

This section also applies to individuals who are not employees

26-30(4)    

If an individual is not an employee, but receives, or is entitled to receive, ^* withholding payments covered by subsection (6), this section applies to the individual as if:

(a) he or she were an employee; and

(b) the entity, who pays (or is liable to pay) ^* withholding payments covered by subsection (6) that result in the individual being in receipt of, or entitled to receive, such payments, were the individual ' s employer; and

(c) any other individual who receives (or is entitled to receive) ^* withholding payments covered by subsection (6):

(i) that result in that other individual being in receipt of, or entitled to receive, such payments; and

(ii) that the entity pays (or is liable to pay) to that other individual;

were an employee of the entity.

This section also applies to entities who are not employers

26-30(5)    

If an entity is not an employer, but pays (or is liable to pay) ^* withholding payments covered by subsection (6), this section applies to the entity as if:

(a) it were an employer; and

(b) an individual to whom the entity pays (or is liable to pay) such withholding payments were the entity ' s employee.

Withholding payments covered

26-30(6)    

This subsection covers:

(a) a ^* withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table; and

(b) a withholding payment covered by section 12-47 in Schedule 1 to the Taxation Administration Act 1953 where:

(i) the payment is made to a religious practitioner by a religious institution; and

(ii) the activity, or series of activities, for which the payment is made is done by the religious practitioner as a member of the religious institution.

Withholding payments covered
Item	Provision	Subject matter
1	Section 12-40	Payment to company director
.
2	Section 12-45	Payment to office holder
.
3	Section 12-50	Return to work payment
.
4	Subdivision 12-D	Benefit, training and compensation payments