Private ruling: Expenses – other – election
Date of advice: 5 February 2019
Published: May 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you entitled to a deduction for election expenses you incurred for re-election to your local Government council seat? | A1: Yes Subsection 25-65(1) of the Income Tax Assessment Act 1997 (ITAA 1997) allows you to deduct expenditure you incur in contesting an election for membership of a local governing body, but you cannot deduct more than $1,000 per election. You deduct the expenditure for the income year in which you incur it. Subsection 25-65(2) of the ITAA 1997 states, you can deduct more than the $1,000 limit if: (a) you have received an amount as recoupment of the expenditure; and (b) some or all of that amount is included in your assessable income for an income year.

Relevant facts and circumstances: You were a candidate for your local government Shire elections. You paid an amount of money from your personal funds toward the Campaign. The payment was made to an agent of the Party to self-fund costs for this campaign. You incurred stationery, hardware and polling booth expenses as part of your election campaign. You have provided substantiation for all of the expenses incurred. You were re-elected to the Shire.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 25-65