27 Aug 088 Political Contributions and Gifts Bill 2008 introducedOn 27 August 2008, Tax Laws Amendment (Political Contributions and Gifts) Bill 2008 was introduced into the House of Representatives. The Bill amends the ITAA 1997 and the ITAA 1936 to remove tax deductibility for contributions and gifts to political parties, independent members and independent candidates. The 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. The measures apply to contributions and gifts made on or after 1 July 2008 as announced in the 2008-09 Budget.
These amendments (other than the GST amendments) were formerly contained in Tax Laws Amendment (2008 Measures No 1 Bill) 2008, which was defeated in the Senate on 26 June 2008 because of concerns over tax deductions for carbon sink forests: see 2008 TAXVINE No 26 (11) (4 July 2008). Curiously, the 2008 Measures No 1 Bill itself contained no amendments relating to carbon sink forests at the time of its defeat.
For a copy of the Bill, go here
For a copy of the EM, go here