Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 2/37)
Character Range: 398550–401234

kind;
 (e) a beneficiary of a trust if the trustee is a partner in the partnership;
 (f) a *relative of a beneficiary of a trust if the trustee is a partner in the partnership;
 (g) another partnership, if a partner in the other partnership is a *relative of a partner in the first partnership.
However, a partner in a partnership is not a related entity of the partnership.

If you can't deduct, then related entity doesn't include amount as income
 (4) To the extent that subsection (1) stops you deducting an amount, the amount is neither assessable income, nor exempt income, of the *related entity.

26‑40  Maintaining your family
  You cannot deduct under this Act expenditure you incur for maintaining:
 (a) your *spouse (except a spouse permanently living separately and apart from you); or
 (b) your *child who is under 16 years.
Example: A farmer cannot deduct an amount for food or lodgings that the farmer provides to his or her child who is under 16 years for the work the child performs on the farm.

26‑45  Recreational club expenses
 (1) You cannot deduct under this Act a loss or outgoing to the extent you incur it to obtain or maintain:
 (a) membership of a *recreational club; or
 (b) rights to enjoy (otherwise than as a *member) facilities provided by a *recreational club for the use or benefit of its *members;
whether for yourself or someone else.

Meaning of recreational club
 (2) A recreational club is a company that was established or is carried on mainly to provide facilities, for the use or benefit of its *members, for drinking, dining, *recreation or entertainment.

Exception when you provide a fringe benefit
 (3) Subsection (1) does not stop you deducting expenditure you incur in *providing a *fringe benefit.

26‑47  Non‑business boating activities

Object
 (1) The object of this section is to improve the integrity of the taxation system by preventing deductions from boating activities that are not carried on as a *business being offset against other assessable income.

Rule
 (2) This Act applies to you as if so much of the amounts relating to using or *holding boats that you could otherwise deduct for an income year as exceeds your assessable income from using or holding boats for that year:
 (a) were not deductible for that income year; and
 (b) were an amount (a quarantined amount) relating to using or holding boats that you can deduct for the next income year.
Note: A quarantined amount may be reduced under subsection (5) (for boat capital gains), reduced under subsection (7) (where you deduct part of a quarantined amount under subsection (6) for boat business profits), reduced under subsection (8) (about exempt income) or