(1) You can deduct a gift or contribution that you make in the situations set out in the following table. It tells you:
ï· who the recipient of the gift or contribution can be; and
ï· the type of gift or contribution that you can make; and
ï· how much you can deduct for the gift or contribution; and
ï· any special conditions that apply.
(2) A testamentary gift or contribution is not deductible under this section.
Note: Subdivision 30 - DA deals with the deductibility of contributions and gifts to political parties, independent candidates and members.
Recoupment of expenses you incurred and can deduct
Your assessable income may include an amount that you receive by way of insurance, indemnity or other recoupment if:
ï· it is for a deductible expense; and
ï· it is not otherwise assessable income.
Recoupment of expenses you did not incur but can deduct
Your assessable income may include an amount that another entity receives by way of insurance, indemnity or other recoupment if:
ï· it is for an expense that you can deduct; and
ï· it is not otherwise your assessable income.
Step 1. Add up all the * assessable recoupments of the loss or outgoing that you have received (in the * current year or earlier). The result is the total assessable recoupment .
Step 2. Add up the amounts (if any) included in your assessable income for earlier income years, in respect of the loss or outgoing, by this section or a * previous recoupment law. The result is the recoupment already assessed . (If no amount was included, the recoupment already assessed is nil.)
Step 3. Subtract the recoupment already assessed from the total assessable recoupment. The result is the unassessed recoupment .
Step 4. Add up each amount that you can deduct for the loss or outgoing for the * current year, or you have deducted or can deduct for the loss or outgoing for an earlier income year. The result is the total deductions for the loss or outgoing .
Note: The total deductions may be reduced if an amount has been included in your assessable income because of a balancing adjustment: see section 20 - 45.
Step 5. Subtract the recoupment already assessed from the total deductions for the loss or outgoing. The result is the outstanding deductions .
Step 6. The unassessed recoupment is included in your assessable income, unless it is greater than the outstanding deductions. In that case, the amount of the outstanding deductions is included instead.
This Subdivision reverses the effect of deductions for lease payments for a car leased to you (or to your associate), but only if you make a profit by disposing of the car after acquiring it from the lessor. The smallest of these amounts is included in your assessable income:
ï· your profit on the disposal;
ï· the total deductible lease payments for the period of the lease;
ï· the total amounts you could have deducted for the car's decline in value if, instead of leasing it, you had owned it and used it solely for the purpose of producing assessable income.
• the * car's * cost to the lessor for the purposes of Subdivision 40 - C (which is about working out the cost of * depreciating assets);
• the car's * termination value for the purposes of section 40 - 300 when the lessor disposed of it.
Step 2. If the car's cost exceeds the car's termination value, multiply the excess by:
• the number of days in the lease period;
• the number of days the lessor owned the car.
Step 3. The result is the notional depreciation for the lease period.
Step 4. If the car's cost does not exceed the car's termination value, the notional depreciation for the lease period is zero.
Step 1. Work out the remaining expenditure as follows:
• For the income year in which the * period of the loan begins, it is the amount of the expenditure.
• For a later income year, it is the amount of the expenditure reduced by the maximum amount that you can deduct for the expenditure for each earlier income year.
Step 2. Work out the remaining loan period as follows:
• For the income year in which the * period of the loan begins, it is the period of the loan (as determined at the end of the income year).
• For a later income year, it is the period from the start of the income year until the end of the period of the loan (as determined at the end of the income year).
Step 3. Divide the remaining expenditure by the number of days in the remaining loan period.
Step 4. Multiply the result from Step 3 by the number of days in the remaining loan period that are in the income year.
(b) property (including * trading stock) that you purchased during the 12 months before making the gift; or
(c) an item of your trading stock if:
ï· the gift is a disposal of the item outside the ordinary course of your * business; and
ï· no election has been made, or is made, in relation to the item under Subdivision 385 - E (about electing to spread or defer profit from the forced disposal or death of * live stock); or
(a) if the gift is money--the amount you are giving; or
(b) if the gift is property (except trading stock covered by paragraph (c), property covered by paragraph (d) or shares covered by paragraph (e))--the lesser of the market value of the property on the day you made the gift and the amount you paid for the property; or
(c) if the gift is an item of your trading stock:
ï· that you disposed of outside the ordinary course of your business; and
ï· for which no election has been made, or is made, in relation to the item under Subdivision 385 - E;
(a) the fund, authority or institution must be in Australia; and
(aa) the fund, authority or institution must either meet the requirements of section 30 - 17 or be mentioned by name in the relevant table item in Subdivision 30 - B; and
(b) the value of the gift must be $2 or more; and
(c) any conditions set out in the relevant table item in Subdivision 30 - B must be satisfied; and
(e) * shares that you have acquired in a * listed public company if:
ï· the shares are listed for quotation in the official list of a stock exchange that is listed under the heading "Australia" in regulations made for the purposes of the definition of * approved stock exchange; and
ï· the * market value of the shares on the day you made the gift is $5,000 or less; and
(d) if the gift is property valued by the Commissioner at more than $5,000 and you did not purchase the property during the 12 months before making the gift--the value of the property as determined by the Commissioner; or
An * ancillary fund established and maintained under a will or instrument of trust solely for:
(a) the purpose of providing money, property or benefits:
ï· to a fund, authority or institution gifts to which are deductible under item 1 of this table; and
(b) property (including * trading stock) that you purchased during the 12 months before making the gift; or
(c) an item of your trading stock if:
ï· the gift is a disposal of the item outside the ordinary course of your * business; and
ï· no election has been made, or is made, in relation to the item under Subdivision 385 - E (about electing to spread or defer profit from the forced disposal or death of * live stock); or
(a) if the gift is money--the amount you are giving; or
(b) if the gift is property (except trading stock covered by paragraph (c), property covered by paragraph (d) or shares covered by paragraph (e))--the lesser of the market value of the property on the day you made the gift and the amount you paid for the property; or
(c) if the gift is an item of your trading stock:
ï· that you disposed of outside the ordinary course of your business; and
ï· for which no election has been made, or is made, in relation to the item under Subdivision 385 - E;
(a) the value of the gift must be $2 or more; and
(b) the terms of the will or trust must allow the trustee to invest money that the ancillary fund receives because of the gift only in a way that an * Australian law allows trustees to invest trust money; and
(c) the ancillary fund must meet the requirements of section 30 - 17; and
(e) * shares that you have acquired in a * listed public company if:
ï· the shares are listed for quotation in the official list of a stock exchange that is listed under the heading "Australia" in regulations made for the purposes of the definition of * approved stock exchange; and
ï· the * market value of the shares on the day you made the gift is $5,000 or less; and
(d) if the gift is property valued by the Commissioner at more than $5,000 and you did not purchase the property during the 12 months before making the gift--the value of the property as determined by the Commissioner; or
(a) the Australiana Fund; or
(b) a public library in Australia; or
(c) a public museum in Australia; or
(d) a public art gallery in Australia; or
The general rule is that you can deduct the average of the * GST inclusive market values (as reduced under subsection (3) if that subsection applies) specified in the written valuations you get from approved valuers.
Subdivision 30 - C sets out:
(a) how a person becomes an approved valuer; and
(b) the exceptions to the general rule; and
(c) the situations when the amount you can deduct is reduced.
(a) the property must be accepted by the recipient for inclusion in a collection it is maintaining or establishing; and
(b) the value of the gift must be $2 or more; and
(ba) the institution must meet the requirements of section 30 - 17, unless it is the Australiana Fund; and
The general rule is that you can deduct the average of the * GST inclusive market values (as reduced under subsection (3) if that subsection applies) specified in the written valuations you get from approved valuers.
Subdivision 30 - C sets out:
(a) how a person becomes an approved valuer; and
(b) the exceptions to the general rule; and
(c) the situations when the amount you can deduct is reduced.
(a) the property must be accepted by the Commonwealth for inclusion in a collection maintained, or being established, for the purposes of Artbank; and
(a) the National Trust of Australia (New South Wales); or
(b) the National Trust of Australia (Victoria); or
(c) National Trust of Australia (Queensland) Limited; or
(d) The National Trust of South Australia; or
(e) The National Trust of Australia (W.A.); or
(f) the National Trust of Australia (Tasmania); or
(g) The National Trust of Australia (Northern Territory); or
(h) the National Trust of Australia (A.C.T.); or
A gift of a place included in:
(a) the National Heritage List, or the Commonwealth Heritage List, under the Environment Protection and Biodiversity Conservation Act 1999 ; or
The general rule is that you can deduct the average of the * GST inclusive market values (as reduced under subsection (3) if that subsection applies) specified in the written valuations you get from approved valuers.
Subdivision 30 - C sets out:
(a) how a person becomes an approved valuer; and
(b) the exceptions to the general rule; and
(c) the situations when the amount you can deduct is reduced.
(a) the place must be accepted by the recipient for the purpose of preserving it for the benefit of the public; and
(b) the value of the gift must be $2 or more; and
A contribution of:
(a) money, if the amount is more than $150; or
(b) property that you purchased during the 12 months before making the contribution, if the lesser of:
ï· the * market value of the property on the day you made the contribution; and
ï· the amount you paid for the property;
is more than $150; or
(a) if the contribution is money--the amount of the contribution, reduced by the * GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund - raising event; or
(b) if the contribution is property that you purchased during the 12 months before making the contribution--the lesser of:
ï· the market value of the property on the day you made the contribution; and
ï· the amount you paid for the property;
(a) if the contribution is money--the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund - raising event must not exceed the lesser of:
ï· 20% of the amount of the contribution; and
(ca) * shares that you have acquired in a * listed public company if:
ï· the shares are listed for quotation in the official list of a stock exchange that is listed under the heading "Australia" in regulations made for the purposes of the definition of * approved stock exchange; and
ï· the market value of the shares on the day you made the contribution is more than $150 and less than or equal to $5,000; and
(c) if the contribution is property valued by the Commissioner at more than $5,000 and you did not purchase the property during the 12 months before making the contribution--the value of the property as determined by the Commissioner, reduced by the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund - raising event; or
(b) if the contribution is property that you purchased during the 12 months before making the contribution--the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund - raising event must not exceed the lesser of:
ï· 20% of the lesser of the market value of the property on the day you made the contribution and the amount you paid for the property; and
(d) the contribution is not a gift; and
ï· the contribution is made in return for a right permitting you to attend, or participate in, a particular * fund - raising event in Australia; or
(ca) if the contribution is shares described in paragraph (ca) of the column headed "Type of gift or contribution"--the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund - raising event must not exceed the lesser of:
ï· 20% of the market value of the shares on the day you made the contribution; and
(d) if, instead of making the contribution, you had made a gift of money to the fund, authority or institution, and:
ï· the amount of the gift had been more than $2; and
ï· the gift had been made for the same purpose for which funds were to be raised by the fund - raising event;
you could have deducted the gift under item 1 or 2 of this table; and
(f) you cannot deduct more than 2 contributions in relation to the same fund - raising event; and
A contribution of money, if:
(a) the amount is more than $150; and
(b) the contribution is not a gift; and
(a) the GST inclusive market value, on the day you made the contribution, of the goods or services must not exceed the lesser of:
ï· 20% of the amount of the contribution; and
(d) you made the contribution because you were the successful bidder at an auction that:
ï· was a particular * fund - raising event in Australia; or
ï· was held at a particular fund - raising event in Australia; and
(b) if, instead of making the contribution, you had made a gift of money to the fund, authority or institution, and:
ï· the amount of the gift had been more than $2; and
ï· the gift had been made for the same purpose for which funds were to be raised by the fund - raising event;
you could have deducted the gift under item 1 or 2 of this table; and
(3) For the purposes of items 4, 5 and 6 of the table in subsection (2), the * GST inclusive market values of the property or place in question are reduced by 1 / 11 if you would have been entitled to an * input tax credit if:
(a) you had * acquired the property or place at the time you made the gift; and
(b) your acquisition had been for a * creditable purpose.
(4) For the purposes of item 7 of the table in subsection (2), in working out the * GST inclusive market value of the right in question, disregard anything that would prevent or restrict conversion of the right to money.
(5) For the purposes of item 8 of the table in subsection (2), in working out the * GST inclusive market value of the goods or services in question, disregard anything that would prevent or restrict conversion of the goods or services to money.