Private ruling: Election expenses
Published: September 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to deduction for election expenses you incurred in your State election campaign? | A1: Yes.

Relevant facts and circumstances: You were a candidate for a seat in your State election. You incurred the following expenses as part of your election campaign: · electronic billboard advertising · delivery of election material to households · election advertising fridge magnets · election advertising Christmas cards · hire of a hall for an election forum. You have provided substantiation for all of the expenses incurred.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 25-60.

Reasons for decision: Summary: Section 25-60 of the Income Tax Assessment Act 1997 (ITAA 1997) allows you to deduct expenditure you incur in contesting an election for the parliament of the Commonwealth, or the Parliament of any State or Territory. The deduction is not restricted to expenses incurred after the election process has been formally initiated by the issue of writs. In FC of T v. Wilcox 82 ATC 4411; (1982) 13 ATR 395 the taxpayer was allowed deductions for election expenses up to two years before the election was actually held. Taxation Ruling TR 1999/10 discusses the Commissioners view on the deductibility of election expenses. The expenditure considered deductible includes: · advertising and promotional expenses incurred during the election period · expenses of printing electoral material that is used in the election period · costs of campaign novelty items - car stickers, T-shirts, lapel buttons or badges, pens, pencils or balloons · costs of campaign rallies and meetings. Candidates for election in Federal, State and local government elections are required to substantiate all expenses incurred. In your case you have incurred advertising, hall hire and other expenses in the course of conducting your campaign as a candidate in a State election. Your election expenses are allowable deductions as you have substantiated the expenses. As such, you are entitled to a deduction for your expenses under section 25-60 of the ITAA 1997.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.