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 26-45   Recreational club expenses  

26-45(1)    
You cannot deduct under this Act a loss or outgoing to the extent you incur it to obtain or maintain:

(a) membership of a ^* recreational club; or

(b) rights to enjoy (otherwise than as a ^* member) facilities provided by a ^* recreational club for the use or benefit of its ^* members;

whether for yourself or someone else.

Meaning of recreational club

26-45(2)    
A recreational club is a company that was established or is carried on mainly to provide facilities, for the use or benefit of its ^* members, for drinking, dining, ^* recreation or entertainment.

Exception when you provide a fringe benefit

26-45(3)    
Subsection (1) does not stop you deducting expenditure you incur in ^* providing a ^* fringe benefit.