Democratic Alternative Information Service:
  Constitutional Convention

Tax Deductibility of Campaign Expenses

Although it has not yet been publicised by the Government, expenses involved in nominating and campaigning for the Constitutional Convention will be tax deductible, up to a maximum of $1000.

This measure was introduced - but hardly noticed by most observers - in the 1997 Federal Budget. It is based on existing provisions regarding local, state and federal elections, and legislation to give specific effect to this measure is expected to go to Parliament in late 1997 or early 1998.

On 24 October, I spoke by phone with Mark O'Connor of the Australian Taxation Office in Canberra, after failing to obtain any information from the ATO in Brisbane. Mark's advice was that eligible expenses will include the $500 nomination fee, and will be likely to include any campaign expenditure apart from private entertainment expenses. Entertainment expenses should be deductible, though, in the case of a function which is open to the public, for campaign purposes.

Keep records - and keep receipts!

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Ross Garrad, 24 October 1997