INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision A - General  

SECTION 74A   ELECTION EXPENSES OF CANDIDATES FOR LOCAL GOVERNMENTS  

74A(1)   [Definitions]  

In this section -

eligible election expenditure
, in relation to a taxpayer, means expenditure incurred by the taxpayer, in the year of income that commenced on 1 July 1985 or a subsequent year of income -

(a) in being elected as a member; or

(b) in contesting an election for membership,

of a local governing body.

local governing body
means a local governing body established by or under a law of a State or Territory.

non-deductible amount
, in relation to a taxpayer in respect of an election as at the end of a year of income, means the total eligible election expenditure incurred by the taxpayer before the end of the year of income in respect of the election (including any such expenditure incurred in any preceding year of income) reduced by -

(a) all deductions allowed or allowable to the taxpayer under this section, in the year of income or a preceding year of income, in respect of that expenditure; and

(b) all amounts that have been applied under subsection (5) in preceding years of income in reduction of amounts that would otherwise have been included in the assessable income of the taxpayer in respect of the election.

unused deduction limit
, in relation to a taxpayer in respect of an election as at the end of a year of income, means -

(a) where neither paragraph (b) nor (c) applies - $1,000;

(b) where -

(i) in a preceding year of income or preceding years of income, a deduction or deductions are allowable or have been allowed to the taxpayer under this section in respect of the election; and

(ii) paragraph (c) does not apply,

$1,000 reduced by the amount of that deduction or the sum of the amounts of those deductions; or

(c) where -

(i) in a preceding year of income or preceding years of income, a deduction or deductions are allowable or have been allowed to the taxpayer under this section in respect of the election; and

(ii) an amount or amounts have been included in the assessable income of the taxpayer of a preceding year of income or preceding years of income under subsection (4) in respect of the election,

$1,000 reduced by the amount (if any) by which the amount of the deduction, or the sum of the amounts of the deductions, referred to in subparagraph (i) exceeds the amount, or the sum of the amounts, included in assessable income as mentioned in subparagraph (ii).

74A(2)   [Allowable deductions]  

Subject to subsection (3), eligible election expenditure incurred by a taxpayer in a year of income is an allowable deduction.

74A(3)   [Maximum deduction allowable]  

The deduction allowable to a taxpayer under this section in a year of income in respect of expenditure incurred in respect of an election shall not exceed the unused deduction limit in respect of the election as at the end of the year of income.

74A(4)   [Expenditure reimbursed or paid by others]  

Subject to subsection (5), where in a year of income the whole or any part of eligible election expenditure incurred by a taxpayer -

(a) is reimbursed to the taxpayer; or

(b) is paid for the taxpayer by any other person or by an organisation,

the assessable income of the taxpayer of the year of income shall include the amount reimbursed or paid.

74A(5)   [Amount included in assessable income]  

The amount to be included under subsection (4) in the assessable income of a taxpayer of a year of income in respect of an election shall be reduced by the non-deductible amount (if any) in relation to the taxpayer in respect of the election as at the end of the year of income.