"Previous recoupment law" means a provision of the Income Tax Assessment Act 1936 listed in this table.

Subdivision 20-B—Disposal of a car for which lease payments have been deducted
Guide to Subdivision 20-B
20-100 What this Subdivision is about

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:

your profit on the disposal;
the total deductible lease payments for the period of the lease;
the total amounts you could have deducted for depreciation of the car if, instead of leasing it, you had owned it and used it solely for the purpose of producing assessable income.

Table of sections

20-105 Map of this Subdivision

The usual case

20-110 Disposal of a leased car for profit
20-115 Working out the profit on the disposal
20-120 Meaning of notional depreciation

The associate case

20-125 Disposal of a leased car for profit

Successive leases

20-130 Successive leases

Previous disposals of the car

20-135 No amount included if earlier disposal for market value
20-140 Reducing the amount to be included if there has been an earlier disposal

Miscellaneous rules

20-145 No amount included if you inherited the car
20-150 Reducing the amount to be included if another provision requires you to include an amount for the disposal
20-155 Exception for particular cars taken on hire

Disposals of interests in a car: special rules apply

20-160 Disposal of an interest in a car

20-105 Map of this Subdivision

The usual case
20-110 Disposal of a leased car for profit

(1)

Your assessable income includes the ^* profit you make on disposing of a ^* car if:

(a)

the car was designed mainly for carrying passengers; and

(b)

the car was leased to you and has been leased to no-one else; and

(c)

you or another entity can deduct for the income year any of the lease payments paid or payable by you, or have deducted or can deduct any of them for an earlier income year, under this Act; and

(d)

you acquired the car from the lessor.

Note 1: Even if subsection (1) does not apply, an amount may still be included in your assessable income:

* * under section 20-125 (which deals with more complicated cases that may involve your associate); or
* * if you disposed of an interest in a car (rather than the car itself): see section 20-160.

Note 2: In some cases you do not include an amount in your assessable income:

* * if there has been an earlier disposal of the car for market value: see section 20-135; or
* * if you inherited the car: see section 20-145; or
* * if the car was let on hire in the circumstances set out in section 20-155.

(2)

However, the amount included cannot exceed the smaller of these limits:

(a)

the total lease payments for the lease that you or another entity have deducted or can deduct under this Act for an income year;

(b)

the amount of ^* notional depreciation for the lease period.

Note 1: If, because of more than one lease of the car, there is more than one way to work out the amount to be included, you only include the largest amount: see section 20-130.

Note 2: In some cases you reduce the amount to be included:

* * if there has been an earlier disposal of the car, or of an interest in it: see section 20-140; or
* * if another provision requires you to include an amount because of the disposal: see section 20-150.

(3)

You increase those limits if you have previously leased the ^* car from the same lessor, or from an ^* associate of that lessor.

You increase the first limit by the total lease payments for each previous lease of that kind that you or another entity have deducted or can deduct under this Act for an income year.

You increase the second limit by the amount of ^* notional depreciation for the period of each previous lease of that kind.

20-115 Working out the profit on the disposal

(1)

The profit on the disposal is the amount by which the ^* consideration receivable for the disposal exceeds:

the amount it cost you to acquire the ^* car;

plus:

any capital expenditure you incurred on the car after acquiring it.

(2)

The consideration receivable is worked out using this table:

20-120 Meaning of notional depreciation

This is how to work out the notional depreciation for a lease period:

Method statement

Step 1. Compare:

* the ^* car's ^* cost to the lessor for the purposes of Subdivision 42-B (which is about working out the cost of ^* plant for the purposes of depreciation);

with:

* the car's ^* termination value for the purposes of section 42-205 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;

divided by:

* 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.

Note 1: The notional depreciation for the lease period represents:

* * the amount you could have deducted for depreciation of the car if, instead of leasing it, you had owned it and used it solely for the purpose of producing assessable income for that period;

adjusted by:

* * the balancing adjustment you would have made if you had disposed of the car at the end of that period.

Note 2: The car's cost to the lessor is worked out differently if the lessor acquired it in the 1996-97 income year or an earlier income year: see section 20-105 of the Income Tax (Transitional Provisions) Act 1997 .

Note 3: The car's termination value is worked out differently if the lessor disposed of it in the 1996-97 income year or an earlier income year: see section 20-110 of the Income Tax (Transitional Provisions) Act 1997 .

The associate case
20-125 Disposal of a leased car for profit

(1)

Your assessable income includes the ^* profit you make on disposing of a ^* car if:

(a)

section 20-110 does not include an amount in your assessable income because of the disposal; and

(b)

the car was designed mainly for carrying passengers; and

(c)

the car was leased to you or your ^* associate; and

(d)

you, your associate or another entity can deduct for the income year any of the lease payments paid or payable by the lessee, or have deducted or can deduct any of them for an earlier income year, under this Act; and

(e)

either:

(i)

you, your associate, or entities including you or your associate, acquired the car from the lessor; or

(ii)

another entity acquired the car from the lessor under an ^* arrangement that enabled you or your associate to acquire the car.

Note 1: Even if subsection (1) does not apply, an amount may be included in your assessable income if you disposed of an interest in a car (rather than the car itself): see section 20-160.

Note 2: In some cases you do not include an amount in your assessable income:

* * if there has been an earlier disposal of the car for market value: see section 20-135; or
* * if you inherited the car: see section 20-145; or
* * if the car was let on hire in the circumstances set out in section 20-155.

(2)

However, the amount included cannot exceed the smallest of these limits:

(a)

the total lease payments for the lease that you, your ^* associate or another entity have deducted or can deduct under this Act for an income year;

(b)

the amount of ^* notional depreciation for the lease period;

(c)

if an entity other than you, or if entities including you, acquired the ^* car from the lessor—the amount by which the ^* consideration receivable for the disposal of the car by you exceeds the total of:

(i)

the car's cost to that entity, or those entities; and

(ii)

any capital expenditure that entity, or any of those entities, incurred on the car after that acquisition and before you acquired it.

Note 1: If, because of more than one lease of the car, there is more than one way to work out the amount to be included, you only include the largest amount: see section 20-130.

Note 2: In some cases you reduce the amount to be included:

* * if there has been an earlier disposal of the car, or of an interest in it: see section 20-140; or
* * if another provision requires you to include an amount because of the disposal: see section 20-150.

Example: Your associate leases a car for 5 years and then acquires it from the lessor for $4,000. Your associate sells it to you for $3,000. You sell it for $10,000.

Your profit is $10,000 (the consideration receivable) less $3,000 (the car's cost to you) = $7,000.

The first 2 limits on the amount to be included in your assessable income are $9,000 (total deductible lease payments for the lease) and $8,000 (notional depreciation for the lease period).

Since your associate acquired the car from the lessor, the third limit is $10,000 (the consideration receivable by you) less $4,000 (the car's cost to the associate) = $6,000.

The amount you include in your assessable income cannot exceed the smallest of the limits. So, you do not include your profit of $7,000. Instead, you include $6,000 (the smallest of the limits).

(3)

You increase the first 2 limits if you, or your associate, have previously leased the ^* car from the same lessor, or from an associate of that lessor.

You increase the first limit by the total lease payments for each previous lease of that kind that you, your ^* associate or another entity have deducted or can deduct under this Act for an income year.

You increase the second limit by the amount of ^* notional depreciation for the period of each previous lease of that kind.

Successive leases
20-130 Successive leases

If, because of 2 or more leases of the ^* car, there are different amounts that could be included in your assessable income because of the disposal, only the largest of those amounts is included.

Previous disposals of the car
20-135 No amount included if earlier disposal for market value

You do not include an amount in your assessable income because of the disposal if, after the lessor disposed of the ^* car and before you disposed of it, an entity other than you disposed of the car and:

(a)

the ^* consideration receivable for that disposal was at least the market value of the car at the time of that disposal; or

(b)

because of that disposal, that market value was included, or an amount worked out using that market value was included, in the entity's assessable income under this Act.

20-140 Reducing the amount to be included if there has been an earlier disposal

Each limit on the amount to be included in your assessable income because of your disposal of the ^* car is reduced if, after the lease period began and before your disposal, the car, or an interest in it, was disposed of in one of these situations:

Examples: Your associate leases a car for 5 years and then acquires it. Your associate disposes of it to you and section 20-110 includes $500 in your associate's assessable income.

You later dispose of the car.

In working out the amount to include in your assessable income for your disposal, you can reduce each limit in subsection 20-125(2) by $500 because the disposal by your associate occurred after the lease period began.

Contrast this case:

You lease a car for 5 years and then acquire it. You dispose of it to another entity and section 20-110 includes $1,000 in your assessable income.

You lease the car from that entity for 2 years and then acquire it. You later dispose of it.

In working out the amount to include in your assessable income in respect of the second lease, you cannot reduce each limit in subsection 20-110(2) by $1,000 because the first disposal did not occur after the start of that lease.

Note: If the earlier disposal occurred in the 1996-97 income year or an earlier income year, each limit may be able to be reduced by a further amount: see section 20-115 of the Income Tax (Transitional Provisions) Act 1997 .

Miscellaneous rules
20-145 No amount included if you inherited the car

You do not include an amount in your assessable income because of the disposal if you inherited the ^* car.

20-150 Reducing the amount to be included if another provision requires you to include an amount for the disposal

The amount to be included in your assessable income because of the disposal is reduced by any amount that another provision of this Act (except sections 42-190 and 42-240) requires you to include in your assessable income because of the disposal.

Note: Sections 42-190 and 42-240 are about including an amount after making a balancing adjustment on the disposal of a car.

20-155 Exception for particular cars taken on hire

This Subdivision does not apply to these kinds of leases:

(a)

letting a ^* car on hire under a hire purchase agreement; or

(b)

letting a ^* car on hire under an agreement of a kind ordinarily entered into by people who take cars on hire intermittently on an hourly, daily, weekly or monthly basis.

Disposals of interests in a car: special rules apply
20-160 Disposal of an interest in a car

(1)

This Subdivision applies to the disposal of an interest in a ^* car in almost the same way as it does to the disposal of the car itself. The differences are set out below.

(2)

Your assessable income includes so much of your ^* profit on the disposal as is reasonable. The limits in subsections 20-110(2) and 20-125(2) do not apply.

(3)

The cost of the interest to you is taken to be a reasonable amount.

(4)

Sections 20-135 and 20-140 do not apply to the disposal.

Note 1: Section 20-135 says that you do not include an amount if there has been an earlier disposal of the car for market value.

Note 2: Section 20-140 allows you to reduce the amount to be included if there has been an earlier disposal of the car.

(5)

Section 20-145 applies to the disposal if you inherited either the interest or the ^* car itself.

Note: Section 20-145 says that you do not include an amount if you inherited the car.

[The next Part is Part 2-5.]

3 Part 2-5 (link note after heading)

Omit " Division 26 ", substitute " Division 25 ".

4 Before Division 26

Insert:

Division 25—Some amounts you can deduct

Guide to Division 25
25-1 What this Division is about

This Division sets out some amounts you can deduct. Remember that the general rules about deductions in Division 8 (which is about general deductions) apply to this Division.

Table of sections

Operative provisions

25-5 Tax-related expenses
25-10 Repairs
25-15 Amount paid for lease obligation to repair
25-20 Lease document expenses
25-25 Borrowing expenses
25-30 Expenses of discharging a mortgage
25-35 Bad debts
25-40 Loss from profit-making undertaking or plan
25-45 Loss by theft etc.
25-50 Payments of pensions, gratuities or retiring allowances
25-55 Payments to associations
25-60 Parliament election expenses
25-70 Deduction for election expenses does not extend to entertainment
25-75 Rates and land taxes on premises used to produce mutual receipts

Operative provisions
25-5 Tax-related expenses

(1)

You can deduct expenditure you incur to the extent that it is for:

(a)

managing your ^* tax affairs; or

(b)

complying with an obligation imposed on you by a ^* Commonwealth law, insofar as that obligation relates to the ^* tax affairs of an entity; or

(c)

interest under section 170AA (Underpayment of tax) or 207A (Late payment of tax) of the Income Tax Assessment Act 1936 .

Note: To find out whether a trustee of a deceased estate can deduct expenditure under this section, see subsection 69(7) of the Income Tax Assessment Act 1936 .

No deduction for certain expenditure

(2)

You cannot deduct under subsection (1):

(a)

^* tax; or

(b)

an amount payable under Part VI (Collection and recovery of tax) of the Income Tax Assessment Act 1936 ; or

(c)

expenditure for borrowing money (including payments of interest) to pay an amount covered by paragraph (a) or (b); or

(d)

expenditure for a matter relating to the commission (or possible commission) of an offence against an ^* Australian law or a ^* foreign law; or

(e)

a fee or commission for advice about the operation of a ^* Commonwealth law relating to taxation, unless that advice is provided by a ^* recognised tax adviser.

No deduction for expenditure excluded from general deductions

(3)

You cannot deduct expenditure under subsection (1) to the extent that a provision of this Act (except section 8-1) expressly prevents or limits your deducting it under section 8-1 (about general deductions). It does not matter whether the provision specifically refers to section 8-1.

No deduction for capital expenditure

(4)

You cannot deduct capital expenditure under subsection (1). However, for this purpose, expenditure is not capital expenditure merely because the ^* tax affairs concerned relate to matters of a capital nature.

Example: Under this section, you can deduct expenditure you incur in applying for a private ruling on whether you can depreciate an item of property.

Use of property taken to be for income producing purpose

(5)

Under some provisions of this Act it is important to decide whether you used property for the ^* purpose of producing assessable income. For provisions of that kind, your use of property is taken to be for that purpose insofar as you use the property for:

(a)

managing your ^* tax affairs; or

(b)

complying with an obligation imposed on you by a ^* Commonwealth law, insofar as that obligation relates to the ^* tax affairs of another entity.

Example: You buy a computer to prepare your tax returns. The expenditure you incur in buying the computer is capital expenditure and cannot be deducted under this section.

However, to the extent that you use the computer in preparing your income tax return, you will be able to depreciate your computer and deduct an amount under section 54 (Depreciation) of the Income Tax Assessment Act 1936 . That is because, under this subsection, the computer is property that you are taken to use for the purpose of producing assessable income.

(6)

If another provision of this Act expressly provides that a particular use of property is not taken to be for the ^* purpose of producing assessable income, that provision overrides subsection (5).

25-10 Repairs

(1)

You can deduct expenditure you incur for repairs to premises (or part of premises), ^* plant, machinery, tools or articles that you held or used solely for the ^* purpose of producing assessable income.

Property held or used partly for that purpose

(2)

If you held or used the property only partly for that purpose, you can deduct so much of the expenditure as is reasonable in the circumstances.

No deduction for capital expenditure

(3)

You cannot deduct capital expenditure under this section.

25-15 Amount paid for lease obligation to repair

You can deduct an amount that you pay for failing to comply with a lease obligation to make repairs to premises if you use or have used the premises for the ^* purpose of producing assessable income.

Note: The amount is assessable income of the entity to which you pay it: either as ordinary income under section 6-5 or because it is included by section 15-25.

25-20 Lease document expenses

(1)

You can deduct expenditure you incur for preparing, registering or stamping:

(a)

a lease of property; or

(b)

an assignment or surrender of a lease of property;

if you have used or will use the property solely for the ^* purpose of producing assessable income.

Property used partly for that purpose

(2)

If you have used, or will use, the leased property only partly for that purpose, you can deduct the expenditure to the extent that you have used, or will use, the leased property for that purpose.

25-25 Borrowing expenses

(1)

You can deduct expenditure you incur for borrowing money, to the extent that you use the money for the ^* purpose of producing assessable income. In most cases the deduction is spread over the *period of the loan.

For the cases where the deduction is not spread, see subsection (6).

Note: Your deductions under this section may be reduced if any of your commercial debts have been forgiven in the income year: see Subdivision 245-E of Schedule 2C to the Income Tax Assessment Act 1936 .

Income year when money used solely for the purpose of producing assessable income

(2)

You can deduct for an income year the maximum amount worked out under subsection (4) if you use the borrowed money during that income year solely for the ^* purpose of producing assessable income.

Example: In 1997-98 you borrow $100,000 and incur expenditure of $1,500 for the borrowing. You use the money to buy a house. Throughout 1998-99 you rent the house to a tenant. You can deduct for the expenditure for 1998-99 the maximum amount worked out under subsection (4).

Income year when borrowed money used partly for that purpose

(3)

If you use the money only partly for that purpose during that income year, you can deduct the proportion of that maximum amount that is appropriate having regard to the extent that you used the borrowed money for that purpose.

Note: You cannot deduct anything for that income year if you do not use the money for that purpose at all during that income year.

Maximum deduction for an income year

(4)

You work out as follows the maximum amount that you can deduct for the expenditure for an income year:

Method statement

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 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.

Example: To continue the example in subsection (2): suppose the original period of the loan is 4 years starting on 1 September 1997. What is the maximum amount you can deduct for the expenditure for 1997-98?

Applying the method statement:

After Step 1: the remaining expenditure is $1,500 (the amount of the expenditure).

After Step 2: the remaining loan period is 4 years from 1 September 1997 (1,461 days).

After Step 3: the result is $1,500 divided by 1,461 = $1.03.

After Step 4: the result is $1.03 multiplied by 302 days = $310.06.

Suppose you repay the loan early, on 31 December 1998. What is the maximum amount you can deduct for the expenditure for 1998-99?

Applying the method statement:

After Step 1: the remaining expenditure is $1,500 (the amount of the expenditure) reduced by $310.06 (the maximum amount you can deduct for 1997-98) = $1,189.94.

After Step 2: the remaining loan period is the period from 1 July 1998 to 31 December 1998 (183 days).

After Step 3: the result is $1,189.94 divided by 183 days = $6.50.

After Step 4: the result is $6.50 multiplied by 183 days = $1,189.94.

Meaning of period of the loan

(5)

The period of the loan is the shortest of these periods:

(a)

the period of the loan as specified in the original loan contract;

(b)

the period starting on the first day on which the money was borrowed and ending on the day the loan is repaid;

(c)

5 years starting on the first day on which the money was borrowed.

When deduction not spread

(6)

If the total of the following is $100 or less:

(a)

each amount of expenditure you incur in an income year for borrowing money you use during that income year solely for the ^* purpose of producing assessable income;

(b)

for each amount of expenditure you incur in that income year for borrowing money you use during that income year only partly for that purpose—the proportion of that amount that is appropriate having regard to the extent that you use the money during that income year for that purpose;

you can deduct for the income year:

(c)

each amount covered by paragraph (a); and

(d)

each proportion covered by paragraph (b).

25-30 Expenses of discharging a mortgage

Mortgage for borrowed money

(1)

You can deduct expenditure you incur to discharge a mortgage that you gave as security for the repayment of money that you borrowed if you used the money solely for the ^* purpose of producing assessable income.

Mortgage for property bought

(2)

You can deduct expenditure you incur to discharge a mortgage that you gave as security for the payment of the whole or part of the purchase price of property that you bought if you used the property solely for the ^* purpose of producing assessable income.

Money or property used partly for that purpose

(3)

If you used the money you borrowed, or the property you bought, only partly for the ^* purpose of producing assessable income, you can deduct the expenditure to the extent that you used the money or property for that purpose.

No deduction for payments of principal or interest

(4)

You cannot deduct payments of principal or interest under this section.

25-35 Bad debts

(1)

You can deduct a debt (or part of a debt) that you write off as bad in the income year if:

(a)

it was included in your assessable income for the income year or for an earlier income year; or

(b)

it is in respect of money that you lent in the ordinary course of your ^* business of lending money.

Note: If a bad debt is in respect of a payment that is required to be made under a qualifying security (within the meaning of Division 16E of Part III of the Income Tax Assessment Act 1936 ): see subsection 63(1A) of that Act.

Writing off a debt you have bought

(2)

You can deduct a debt that you write off as bad in the income year if you bought the debt in the ordinary course of your ^* business of lending money. However, you cannot deduct more than the expenditure you incurred in buying the debt.

Writing off part of a debt you have bought

(3)

You can deduct a part of a debt if:

(a)

you write off that part as bad in the income year; and

(b)

you bought the debt in the ordinary course of your ^* business of lending money.

(4)

However, the maximum that you can deduct under subsection (3) for one or more income years is the amount (if any) by which:

* the expenditure you incurred in buying the debt;

exceeds:

* so much of the debt as has not yet been written off as bad.

Special rules affecting deductions under this section

(5)

Your entitlement to deductions under this section may be affected by the rules described in the table.

Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936 .

25-40 Loss from profit-making undertaking or plan

(1)

You can deduct a loss arising from the carrying on or carrying out of a profit-making undertaking or plan if any profit from that plan would have been included in your assessable income by

section 15-15 (which is about profit-making undertakings and plans).

When section does not apply

(2)

You cannot deduct a loss under subsection (1) if the loss arises in respect of the sale of property acquired on or after 20 September 1985.

Note: If you sell property you acquired before 20 September 1985 for profit-making by sale, you may be able to deduct a loss on the sale: see section 52 of the Income Tax Assessment Act 1936 .

Notice to Commissioner

(3)

You can deduct a loss under subsection (1), insofar as it arises in respect of property, only if:

(a)

you notified the Commissioner that you acquired the property for the purpose of profit-making by sale or for the carrying on or carrying out of any profit-making undertaking or plan (however described); or

(b)

the Commissioner is satisfied that you acquired the property for either of those purposes.

When notice must have been given

(4)

The notice must have been given at or before the time you lodged your ^* income tax return:

(a)

for the income year in which you acquired the property; or

(b)

if you were not required to lodge an income tax return for that income year—for the first income year after that income year for which you were required to lodge one.

25-45 Loss by theft etc.

You can deduct a loss in respect of money if:

(a)

you discover the loss in the income year; and

(b)

the loss was caused by theft, stealing, embezzlement, larceny, defalcation or misappropriation by your employee or ^* agent (other than an individual you employ solely for private purposes); and

(c)

the money was included in your assessable income for the income year, or for an earlier income year.

25-50 Payments of pensions, gratuities or retiring allowances

(1)

You can deduct a payment of a pension, gratuity or retiring allowance that you make to:

(a)

an employee; or

(b)

a former employee; or

(c)

a dependant of an employee or a former employee.

(2)

However, you can deduct it only to the extent that it is made in good faith in consideration of the past services of the employee, or former employee, in any ^* business that you carried on for the purpose of gaining or producing assessable income.

(3)

You cannot deduct a payment under this section if you can deduct it under any other provision of this Act.

25-55 Payments to associations

(1)

You can deduct a payment you make for membership of a trade, business or professional association.

Note: Alternatively, you can deduct the expense under section 8-1 (which is about general deductions) if you satisfy the requirements of that section.

Maximum amount—$42

(2)

However, $42 is the maximum amount you can deduct under this section for the payments that you make in the income year to any one association.

If you deduct under section 8-1

(3)

If you deduct a payment under section 8-1 (which is about general deductions) instead of this section:

(a)

the payment does not count towards the $42 limit; and

(b)

the amount that you can deduct for the payment is not limited to $42.

25-60 Parliament election expenses

You can deduct expenditure you incur in contesting an election for membership of:

(a)

the Parliament of the Commonwealth; or

(b)

the Parliament of a State; or

(c)

the Legislative Assembly for the Australian Capital Territory; or

(d)

the Legislative Assembly of the Northern Territory of Australia.

Note: Entertainment expenses are excluded: see section 25-70.

[The next section is section 25-70.]

25-70 Deduction for election expenses does not extend to entertainment

(1)

To the extent that you incur expenditure in respect of providing ^* entertainment, you cannot deduct it under section 25-60.

(2)

However, subsection (1) does not stop you deducting expenditure to the extent that you incur it in respect of:

(a)

providing ^* entertainment that is available to the public generally; or

(b)

providing food or drink to yourself, unless it would be concluded that you have a purpose of enabling or facilitating ^* entertainment to be provided to someone else.

25-75 Rates and land taxes on premises used to produce mutual receipts

(1)

An entity can deduct these amounts it pays for premises:

(a)

rates which are annually assessed;

(b)

land tax imposed under a ^* State law or ^* Territory law.

But only if it uses the premises:

(c)

for the purpose of producing mutual receipts; or

(d)

in carrying on a ^* business for the purpose of producing mutual receipts.

When premises used only for deductible purposes

(2)

The entity can deduct the whole of the rates or land tax if it uses the premises only in one or more of these ways:

(a)

for the purpose of producing mutual receipts;

(b)

in carrying on a ^* business for the purpose of producing mutual receipts;

(c)

for the ^* purpose of producing assessable income.

When premises used partly for deductible purposes

(3)

If the entity uses the premises partly in one or more of the ways referred to in subsection (2) and partly in some other way, it can deduct the rates or land tax to the extent that it uses the premises in one or more of the ways referred to in that subsection.

No deduction under section 8-1

(4)

The entity cannot deduct the rates or land tax under section 8-1 (which is about general deductions).

5 Division 26 (heading and link note)

Repeal the heading and the link note, substitute:

Division 26—Some amounts you cannot deduct, or cannot deduct in full

Guide to Division 26
26-1 What this Division is about

This Division sets out some amounts that you cannot deduct, or that you cannot deduct in full.

Table of sections

Operative provisions

26-5 Penalties
26-10 Leave payments
26-20 HECS and student assistance
26-30 Relative's travel expenses
26-35 Reducing deductions for amounts paid to related entities
26-40 Maintaining your family
26-45 Recreational club expenses
26-50 Expenses for a leisure facility or boat

Operative provisions
26-5 Penalties

You cannot deduct under this Act:

(a)

an amount (however described) payable, by way of penalty, under an ^* Australian law or a ^* foreign law; or

(b)

an amount ordered by a court to be paid on the conviction of an entity for an offence against an ^* Australian law or a ^* foreign law.

26-10 Leave payments

(1)

You cannot deduct under this Act a loss or outgoing for long service leave, annual leave, sick leave or other leave except:

(a)

an amount paid in the income year to the individual to whom the leave relates (or, if that individual has died, to that individual's dependant or ^* legal personal representative); or

(b)

an ^* accrued leave transfer payment that is made in the income year.

(2)

An accrued leave transfer payment is a payment that an entity makes:

(a)

in respect of an individual's leave (some or all of which accrued while the entity was required to make payments in respect of the individual's leave, or leave the individual might take); and

(b)

when the entity is no longer required (or is about to stop being required) to make payments in respect of such leave; and

(c)

to another entity when the other entity has begun (or is about to begin) to be required to make payments in respect of such leave; and

(d)

under (or for the purposes of facilitating the provisions of) an ^* Australian law, or an award, order, determination or industrial agreement under an ^* Australian law.

It does not matter whether the leave accrues to the individual as an employee or for some other reason.

Example: Your employee goes to a new employer. You pay the new employer $2,000 for the employee's unused long service leave because an industrial agreement requires you to make that payment.

Note: An accrued leave transfer payment is included in the assessable income of the entity to which it is made: see section 15-5.

[The next section is section 26-20.]

26-20 HECS and student assistance

(1)

You cannot deduct under this Act:

(a)

a contribution made under Chapter 4 of the Higher Education Funding Act 1988 ; or

(b)

a basic charge within the meaning of Chapter 5 of that Act; or

(c)

a payment made to reduce a debt to the Commonwealth under Chapter 5A of that Act; or

(d)

a payment made to reduce a debt to the Commonwealth, or to a participating corporation, under Part 4A of the Student Assistance Act 1973 .

Exception when you provide a fringe benefit

(2)

Subsection (1) does not stop you deducting expenditure you incur in ^* providing a ^* fringe benefit.

[The next section is section 26-30.]

26-30 Relative's travel expenses

(1)

You cannot deduct under this Act a loss or outgoing you incur, insofar as it is attributable to your ^* relative's travel, if:

(a)

you travelled in the course of performing your duties as an employee, or in the course of carrying on a ^* business for the purpose of gaining or producing your assessable income; and

(b)

your relative accompanied you while you travelled.

Exception to subsection (1)

(2)

Subsection (1) does not stop you deducting a loss or outgoing if:

(a)

your ^* relative, while accompanying you, performed substantial duties as your employer's employee, or as your employee; and

(b)

it is reasonable to conclude that your relative would still have accompanied you even if he or she had not had a personal relationship with you.

Exception when you provide a fringe benefit

(3)

Subsection (1) does not stop you deducting expenditure you incur in ^* providing a ^* fringe benefit.

This section applies to PAYE earners

(4)

If an individual is not an employee, but is a ^* PAYE earner, this section applies to him or her as if:

(a)

he or she were an employee; and

(b)

the entity (the notional employer ) who pays (or is liable to pay) ^* PAYE earnings because of which he or she is (or would be) a ^* PAYE earner were his or her employer; and

(c)

any other individual who receives (or is entitled to receive) ^* PAYE earnings:

(i)

because of which the other individual is (or would be) a ^* PAYE earner; and

(ii)

that the notional employer pays (or is liable to pay) to the other individual;

were also an employee of the notional employer.

This section applies to entities liable to PAYE earnings

(5)

If an entity is not an employer, but pays (or is liable to pay) ^* PAYE earnings, this section applies to the entity as if:

(a)

it were an employer; and

(b)

an individual to whom the entity pays (or is liable to pay) ^* PAYE earnings were the entity's employee.

26-35 Reducing deductions for amounts paid to related entities

You can only deduct reasonable amounts paid to related entities

(1)

If, under another provision of this Act, you can deduct an amount for a payment you make, or for a liability you incur, to a ^* related entity, then you can only deduct so much of the amount as the Commissioner considers reasonable.

Note: This section has a special operation if the payment is made, or the liability is incurred, by a partnership in which a private company is a partner: see section 65 (Payments to associated persons and relatives) of the Income Tax Assessment Act 1936 .

Meaning of related entity

(2)

A related entity is any of the following:

(a)

your ^* relative; or

(b)

a partnership in which your relative is a partner.

(3)

In the case of a partnership, a related entity is any of the following:

(a)

a ^* relative of a partner in the partnership;

(b)

an individual who is or has been a director of a company that is a partner in the partnership and is a ^* private company for the income year;

(c)

an entity that is or has been a shareholder in a company of that kind;

(d)

a ^* relative of an individual who is or has been a director or shareholder of a company of that 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.

Amendments of assessments

(5)

The Commissioner can amend an assessment at any time for the purpose of giving effect to subsection (4).

Example: An amount was not included in the related entity's assessable income because at the time you could not deduct the amount. At a later time you discover that you could deduct the amount and your assessment is amended. The Commissioner can amend the entity's assessment so that the amount is included in the entity's assessable income.

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.

26-50 Expenses for a leisure facility or boat

(1)

You cannot deduct under this Act a loss or outgoing to the extent you incur it:

(a)

to acquire ownership of a ^* leisure facility or boat; or

(b)

to retain ownership of a ^* leisure facility or boat; or

(c)

to acquire rights to use a ^* leisure facility or boat; or

(d)

to retain rights to use a ^* leisure facility or boat; or

(e)

to use, operate, maintain or repair a ^* leisure facility or boat; or

(f)

in relation to any obligation associated with your ownership of a ^* leisure facility or boat; or

(g)

in relation to any obligation associated with your rights to use a ^* leisure facility or boat.

However, there are exceptions (see subsections (3), (4), (5), (6) and (8)).

What is a leisure facility?

(2)

A leisure facility is land, a building, or part of a building or other structure, that is used (or held for use) for holidays or ^* recreation.

Exception—leisure facilities

(3)

Subsection (1) does not stop you deducting a loss or outgoing for a ^* leisure facility if at all times in the income year:

(a)

you hold the leisure facility for sale in the ordinary course of your business of selling leisure facilities; or

(b)

you use the leisure facility (or hold it for use) mainly to provide it:

(i)

in the ordinary course of your ^* business of providing leisure facilities for payment; or

(ii)

to produce your assessable income in the nature of rents, lease premiums, licence fees or similar charges; or

(iii)

for your employees to use; or

(iv)

for the care of your employees' children.

In the case of a company, subparagraphs (b)(iii) and (iv) do not apply to employees who are ^* members or directors of the company.

Exception—part year use of leisure facilities

(4)

If you use a ^* leisure facility (or hold it) as described in subsection (3) at all times during part of the income year, then subsection (1) does not stop you deducting so much of the loss or outgoing as is reasonable in the circumstances.

Exception—boats

(5)

Subsection (1) does not stop you deducting a loss or outgoing for a boat if at all times in the income year you:

(a)

hold the boat as ^* trading stock for sale in the ordinary course of a ^* business that you carry on; or

(b)

use the boat (or hold it) mainly for letting it on hire in the ordinary course of a ^* business that you carry on; or

(c)

use the boat (or hold it) mainly for transporting for payment in the ordinary course of a ^* business that you carry on, the public or goods; or

(d)

use the boat for a purpose that is essential to the efficient conduct of a ^* business that you carry on.

Exception—part year use of boats

(6)

If you use a boat (or hold it) as described in subsection (5) at all times during part of the income year, then subsection (1) does not stop you deducting so much of the loss or outgoing as is reasonable in the circumstances.

Anti-avoidance—when exceptions do not apply

(7)

A ^* leisure facility or boat is taken not to be used (or held) as described in subsection (3) or (5) if:

(a)

apart from this subsection, the leisure facility or boat would be used (or held) in that way because of a ^* scheme; and

(b)

in the Commissioner's opinion, the scheme would not have been entered into or carried out if this section had not been enacted.

Exception when you provide a fringe benefit

(8)

Subsection (1) does not stop you deducting expenditure you incur in ^* providing a ^* fringe benefit.

6 Section 28-185 (link note)

Omit " Division 36 ", substitute " Division 30 ".

7 After Division 28

Insert:

Division 30—Gifts or contributions

Table of Subdivisions

Guide to Division 30
30-A Deductions for gifts or contributions
30-B Tables of recipients for deductible gifts
30-C Rules applying to particular gifts of property
30-D Testamentary gifts under the Cultural Bequests Program
30-E Register of environmental organisations
30-F Register of cultural organisations
30-G Index to this Division

Guide to Division 30
30-1 What this Division is about

This Division sets out the rules for working out deductions for certain gifts or contributions that you make.

Table of sections

30-5 How to find your way around this Division
30-10 Index

30-5 How to find your way around this Division

(1)

You should start at Subdivision 30-A unless you are making a testamentary gift under the Cultural Bequests Program.

Note: Subdivision 30-D deals with the deductibility of such a gift.

(2)

Subdivision 30-A contains a table of all the gifts and contributions that you can deduct. You need to look at the table to see whether the type of gift or contribution you are making is covered by it.

(3)

In some cases, the table sends you off to Subdivision 30-B. It has a number of tables that list particular funds, authorities or institutions that deductible gifts can be made to.

(4)

In other cases, the table sends you off to Subdivision 30-C. It contains rules that apply to particular gifts of property.

(5)

Subdivision 30-E requires the establishment of a register of ^* environmental organisations. Subdivision 30-F requires the establishment of a register of ^* cultural organisations. Their only relevance to you is that you can deduct a gift that you make to a fund listed on either register.

30-10 Index

There is an index to this Division in Subdivision 30-G.

Subdivision 30-A—Deductions for gifts or contributions

Table of sections

30-15 Table of gifts or contributions that you can deduct

30-15 Table of gifts or contributions that you can deduct

(1)

You can deduct a gift or contribution that you make in the situations set out in the following table. It tells you:

who the recipient of the gift or contribution can be; and the type of gift or contribution that you can make; and how much you can deduct for the gift or contribution; and any special conditions that apply.

(2)

A testamentary gift or contribution is not deductible under this section.

Note: Subdivision 30-D deals with the deductibility of testamentary gifts under the Cultural Bequests Program.

Subdivision 30-B—Tables of recipients for deductible gifts

Table of sections

Health

30-20 Health

Education

30-25 Education
30-30 Gifts that must be for certain purposes
30-35 Gifts to a public fund established to benefit a rural school hostel building must satisfy certain requirements

Research

30-40 Research

Welfare and rights

30-45 Welfare and rights

Defence

30-50 Defence

Environment

30-55 The environment
30-60 Gifts to a National Parks body or conservation body must satisfy certain requirements

Industry, trade and design

30-65 Industry, trade and design

The family

30-70 The family
30-75 Marriage guidance organisations must be approved

International affairs

30-80 International affairs
30-85 Declaration must be in force at the time you make the gift

Sports and recreation

30-90 Sports and recreation

Philanthropic trusts

30-95 Philanthropic trusts

Cultural organisations

30-100 Cultural organisations

Health
30-20 Health

(1)

This table sets out general categories of health recipients.

(2)

This table sets out specific health recipients.

(1)

This table sets out general categories of education recipients.

(2)

This table sets out specific education recipients.

30-30 Gifts that must be for certain purposes

(1)

You can deduct a gift that you make to:

(a)

a technical and further education institution covered by item 2.1.7 of the table in subsection 30-25(1); or

(b)

the Marcus Oldham Farm Management College;

only if the gift is for:

(c)

purposes of the institution, or of the College, that have been declared by the Minister for Employment, Education, Training and Youth Affairs to relate solely to tertiary education; or

(d)

the provision of facilities for the institution, or the College, if the Minister has declared that he or she is satisfied the facilities are to be used principally for such purposes.

(2)

A declaration under subsection (1) must be in writing, signed by the Minister.

30-35 Gifts to a public fund established to benefit a rural school hostel building must satisfy certain requirements

(1)

You can deduct a gift that you make to a public fund covered by item 2.1.11 of the table in subsection 30-25(1) only if each requirement in this section is satisfied.

(2)

The rural school hostel building must be used, or going to be used, principally as residential accommodation for students:

(a)

whose usual place of residence is in a rural area; and

(b)

who are undertaking primary or secondary education, or special education programs for children with disabilities, at a school in the same area as the building.

(3)

The costs of the school must be solely or partly funded by the Commonwealth, a State or a Territory.

(4)

The residential accommodation must be provided by:

(a)

the Commonwealth, a State or a Territory; or

(b)

a public authority; or

(c)

a company that:

(i)

is not carried on for the purposes of profit or gain to its individual members; and

(ii)

is prohibited by its ^* constitution from making any distribution of money or property to its members.

Research
30-40 Research

(1)

This table sets out general categories of research recipients.

(2)

This table sets out specific research recipients.

Welfare and rights
30-45 Welfare and rights

(1)

This table sets out general categories of welfare and rights recipients.

(2)

This table sets out specific welfare and rights recipients.

(1)

This table sets out general categories of defence recipients.

(2)

This table sets out specific defence recipients.

(1)

This table sets out general categories of environment recipients.

(2)

This table sets out specific environment recipients.

30-60 Gifts to a National Parks body or conservation body must satisfy certain requirements

You can deduct a gift that you make to:

(a)

an environmental institution covered by any of the items 6.2.1 to 6.2.12 of the table in subsection 30-55(2); or

(b)

the World Wide Fund for Nature;

only if, at the time of making the gift:

(c)

the institution or Fund has agreed to give the Secretary to the Department of the Environment, Sport and Territories, within a reasonable period after the end of the income year in which you made the gift, statistical information about gifts made to the institution or Fund during that income year; and

(d)

the institution or Fund has a policy of not acting as a mere conduit for the donation of money or property to other institutions, bodies or persons.

Industry, trade and design
30-65 Industry, trade and design

This table sets out specific industry, trade and design recipients.

The family
30-70 The family

(1)

This table sets out general categories of family recipients.

(2)

This table sets out specific family recipients.

30-75 Marriage guidance organisations must be approved

(1)

You can deduct a gift that you make to a public fund covered by item 8.1.1 of the table in subsection 30-70(1) only if the organisation, or branch or section of the organisation, has been declared by the Attorney-General to be a marriage guidance organisation.

(2)

The Attorney-General may declare an organisation, or a branch or section of an organisation, to be a marriage guidance organisation if he or she is satisfied that:

(a)

it is willing and able to engage in marriage guidance; and

(b)

marriage guidance is, or will be, its only activity, or a major part of its activities.

(3)

A declaration under subsection (1) must be in writing, signed by the Attorney-General.

International affairs
30-80 International affairs

(1)

This table sets out general categories of international affairs recipients.

(2)

This table sets out specific international affairs recipients.

30-85 Declaration must be in force at the time you make the gift

(1)

You can deduct a gift that you make to a public fund covered by item 9.1.1 of the table in subsection 30-80(1) only if the declaration is in force at the time you make the gift.

(2)

The Treasurer may, by notice in the Gazette , declare a public fund to be a relief fund if he or she is satisfied that the fund:

(a)

has been established by an organisation declared by the Minister for Foreign Affairs to be an approved organisation; and

(b)

is solely for the relief of people in a country declared by the Minister for Foreign Affairs to be a developing country.

(3)

The notice must specify the day on which it has effect. It cannot have effect earlier than the day on which it is published in the Gazette .

(4)

The Treasurer may, by notice in the Gazette , revoke a declaration that a public fund is a relief fund. The notice must specify the day on which it has effect. It cannot have effect earlier than the day on which it is published in the Gazette .

(5)

A declaration by the Minister for Foreign Affairs under this section must be in writing, signed by the Minister.

Sports and recreation
30-90 Sports and recreation

This table sets out specific sports and recreation recipients.

Philanthropic trusts
30-95 Philanthropic trusts

This table sets out specific philanthropic trusts.

Cultural organisations
30-100 Cultural organisations

(1)

This table sets out general categories of cultural recipients.

(2)

This table sets out specific cultural recipients.

Subdivision 30-C—Rules applying to particular gifts of property

Table of sections

Valuation requirements

30-200 Getting written valuations
30-205 Sale price would have been assessable
30-210 Approved valuers

Working out the amount you can deduct for a gift of property

30-215 How much you can deduct
30-220 Reducing the amount you can deduct

Joint ownership of property

30-225 Gift of property by joint owners

Valuation requirements
30-200 Getting written valuations

(1)

You satisfy the valuation requirements if you get 2 or more written valuations of the gift you made.

Note 1: In most cases, you need to get these written valuations to be able to deduct a gift of property that you make to a recipient covered by

item 4, 5 or 6 of the table in section 30-15.

Note 2: You do not need to get written valuations in the circumstances set out in section 30-205.

(2)

The valuations must be by different individuals, each of whom is an approved valuer of the kind of property you are giving away.

Note: Section 30-210 deals with how an individual becomes an approved valuer.

(3)

Each valuation must state the amount that, in the opinion of the valuer, was:

(a)

the market value of the property on the day you made the gift; or

(b)

the market value of the property on the day the valuation was made.

(4)

If a valuation states the market value of the property on the day the valuation was made, it must have been made within 90 days before or after the gift was made. However, the Commissioner may allow a longer period than this.

30-205 Sale price would have been assessable

You do not need to get written valuations of the gift you made if:

(a)

no amount is included in your assessable income in respect of the gift you made; but

(b)

an amount would have been included in your assessable income if you had sold the property instead of making the gift.

30-210 Approved valuers

(1)

The Secretary to the Department of Communications and the Arts may approve an individual as a valuer of a particular kind of property. The approval must be in writing, signed by the Secretary.

(2)

The Secretary must, in deciding whether to approve an individual, have regard to:

(a)

the individual's qualifications, experience and knowledge in valuing that kind of property; and

(b)

the individual's knowledge of the current market value of that kind of property; and

(c)

the individual's standing in the professional community.

Working out the amount you can deduct for a gift of property
30-215 How much you can deduct

(1)

This section contains the rules for working out how much you can deduct for a gift of property that you make to a recipient covered by item 4, 5 or 6 of the table in section 30-15.

(2)

The general rule is that the amount you can deduct for a gift of this kind is the average of the market values specified in the written valuations you got from the approved valuers.

Note: In some situations you must reduce the amount you can deduct: see section 30-220.

(3)

The exceptions to the general rule are set out in this table:

30-220 Reducing the amount you can deduct

(1)

The amount you can deduct is reduced by a reasonable amount if:

(a)

the terms and conditions on which the gift is made are such that the recipient:

(i)

does not receive immediate custody and control of the property; or

(ii)

does not have the unconditional right to retain custody and control of the property in perpetuity; or

(iii)

does not obtain an immediate, indefeasible and unencumbered legal and equitable title to the property; or

(b)

the custody, control or use of the property by the recipient is affected by an ^* arrangement entered into in respect of the making of the gift.

(2)

In deciding what is a reasonable amount, have regard to the effect of those terms and conditions, or that ^* arrangement, on the market value of the gift.

Joint ownership of property
30-225 Gift of property by joint owners

If:

(a)

you own property jointly with one or more other entities; and

(b)

you and the other entities make a gift of the property; and

(c)

you would have been able to deduct the gift under section 30-15 because of item 4, 5 or 6 of the table in that section if you had made a gift of the property as sole owner of it;

you can deduct so much of the gift as is reasonable, having regard to your interest in the property.

Subdivision 30-D—Testamentary gifts under the Cultural Bequests Program

Table of sections

30-230 Testamentary gifts of property
30-235 Getting a certificate
30-240 Limit on total value of gifts for an income year

30-230 Testamentary gifts of property

(1)

A testamentary gift of property (except an estate or interest in land or in a building or part of a building) that you make under the Cultural Bequests Program is deductible for the income year in which you die.

Note: The trustee of your estate can claim the deduction in the tax return lodged for you that covers the period from the start of the income year to the day you die.

(2)

The recipient of the gift must be:

(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

(e)

an institution in Australia consisting of a public library, a public museum and a public art gallery or any 2 of them.

(3)

The property must be given to, and accepted by, the recipient for inclusion in a collection it is maintaining or establishing.

(4)

The value of the gift must be $2 or more.

(5)

When you die, there must be in force a certificate from the Minister for Communications and the Arts:

(a)

approving the gift; and

(b)

specifying the value of the gift.

(6)

If:

(a)

you die before the last day of an income year; and

(b)

section 26-55 (which is about a limit on deductions) prevents the whole or a part of the gift from being deductible in the tax return lodged for you for that income year;

the trustee of your estate can claim the whole or part as a deduction in the trust return for that income year.

Note: The trust return covers the period from the day you die to the end of the income year.

30-235 Getting a certificate

(1)

You get a certificate by making a written application for one to the Minister for Communications and the Arts.

(2)

The Minister must decide your application in accordance with written guidelines made by the Minister under this section.

(3)

The guidelines may require the Minister to decide an application having regard to:

(a)

specified criteria; or

(b)

recommendations of particular bodies.

(4)

If the Minister approves your gift, he or she must give you a certificate:

(a)

approving the gift; and

(b)

specifying the value of the gift; and

(c)

setting out any other information that the Commissioner requires.

30-240 Limit on total value of gifts for an income year

The total value of all gifts approved by the Minister for Communications and the Arts for an income year cannot exceed an amount that the Minister determines in writing. The Minister must determine this amount before approving any gifts for that income year.

Subdivision 30-E—Register of environmental organisations
Guide to Subdivision 30-E
30-250 What this Subdivision is about

This Subdivision requires the establishment of a register of environmental organisations. Section 30-15 allows you to deduct a gift that you make to a fund that is on the register.

Table of sections

Operative provisions

30-255 Establishing the register
30-260 Meaning of environmental organisation
30-265 Its principal purpose must be protecting the environment
30-270 Other requirements it must satisfy
30-275 Further requirement for a body corporate or a co-operative society
30-280 What must be on the register
30-285 Removal from the register

Operative provisions
30-255 Establishing the register

The Secretary to the Department of Environment, Sport and Territories must keep a register of ^* environmental organisations.

Note: Section 30-280 sets out what details must be entered on the register.

30-260 Meaning of environmental organisation

An environmental organisation is:

(a)

a body corporate; or

(b)

a co-operative society; or

(c)

a trust; or

(d)

an unincorporated body established for a public purpose by the Commonwealth, a State or a Territory;

that satisfies each requirement in sections 30-265 and 30-270.

Note: A body corporate or a co-operative society must satisfy a further requirement: see section 30-275.

30-265 Its principal purpose must be protecting the environment

(1)

Its principal purpose must be:

(a)

the protection and enhancement of the natural environment or of a significant aspect of the natural environment; or

(b)

the provision of information or education, or the carrying on of research, about the natural environment or a significant aspect of the natural environment.

(2)

It must maintain a public fund:

(a)

to which gifts of money or property for its principal purpose can be made; and

(b)

to which any money received because of such gifts is to be credited; and

(c)

that does not receive any other money or property.

(3)

It must use gifts made to the fund, and any money received because of such gifts, only for its principal purpose.

(4)

It must have agreed to comply with any rules that the Treasurer and the Minister for Environment, Sport and Territories make to ensure that gifts made to the fund are used only for its principal purpose.

30-270 Other requirements it must satisfy

No payment of profits to its members

(1)

It must not pay any of its profits or financial surplus, or give any of its property, to its members, beneficiaries, controllers or owners (as appropriate).

No acting as a conduit

(2)

It must have a policy of not acting as a mere conduit for the donation of money or property to other organisations, bodies or persons.

Surplus assets to be transferred on winding up

(3)

It must have rules providing that, if the public fund is wound up, any surplus assets of the fund are to be transferred to another fund that is on the register.

Statistical information to be provided

(4)

It must have agreed to give the Secretary to the Department of Environment, Sport and Territories, within a reasonable period after the end of each income year, statistical information about gifts made to the public fund during that income year.

30-275 Further requirement for a body corporate or a co-operative society

A body corporate (except a statutory authority) or a co-operative society is an environmental organisation only if:

(a)

its membership consists principally of bodies corporate; or

(b)

it has at least 50 members who are individuals that are:

(i)

regarded as financial members; and

(ii)

entitled to vote at a general meeting of it; or

(c)

the Minister for Environment, Sport and Territories has determined that, because of special circumstances, it does not have to meet either of the requirements in paragraph (a) or (b).

30-280 What must be on the register

(1)

The Secretary to the Department of Environment, Sport and Territories must enter on the register each ^* environmental organisation, and the public fund it maintains, that he or she has been directed to enter by the Treasurer and the Minister for Environment, Sport and Territories.

(2)

The Treasurer and the Minister may so direct the Secretary only if the Minister has notified the Treasurer that he or she is satisfied that an organisation is an ^* environmental organisation. The notification must be in writing.

(3)

The direction must be in writing and must specify the day on which the organisation and public fund are to be entered on the register. The day must be the day on which the direction is given or a later day.

(4)

The Treasurer and the Minister for Environment, Sport and Territories must have regard to the policies and budgetary priorities of the Commonwealth Government in deciding whether to give a direction.

30-285 Removal from the register

(1)

The Treasurer and the Minister for Environment, Sport and Territories may direct the Secretary to the Department of Environment, Sport and Territories to remove an ^* environmental organisation, and the public fund it maintains, from the register.

(2)

The direction must be in writing and must specify the day on which the organisation and public fund are to be removed from the register. The day must be the day on which the direction is given or a later day.

Subdivision 30-F—Register of cultural organisations
Guide to Subdivision 30-F
30-290 What this Subdivision is about

This Subdivision requires the establishment of a register of cultural organisations. Section 30-15 allows you to deduct a gift that you make to a fund that is on the register.

Table of sections

Operative provisions

30-295 Establishing the register
30-300 Meaning of cultural organisation
30-305 What must be on the register
30-310 Removal from the register

Operative provisions
30-295 Establishing the register

The Secretary to the Department of Communications and the Arts must keep a register of ^* cultural organisations.

Note: Section 30-305 sets out what details must be entered on the register.

30-300 Meaning of cultural organisation

(1)

A cultural organisation is:

(a)

a body corporate; or

(b)

a trust; or

(c)

an unincorporated body established for a public purpose by the Commonwealth, a State or a Territory;

that satisfies each requirement in this section.

(2)

Its principal purpose must be the promotion of literature, music, a performing art, a visual art, a craft, design, film, video, television, radio, community arts, Aboriginal arts or movable cultural heritage.

(3)

It must maintain a public fund:

(a)

to which gifts of money or property for its principal purpose can be made; and

(b)

to which any money received because of such gifts is to be credited; and

(c)

that does not receive any other money or property.

(4)

It must use gifts made to the fund, and any money received because of such gifts, only for its principal purpose.

(5)

It must not pay any of its profits or financial surplus, or give any of its property, to its members, beneficiaries, controllers or owners (as appropriate).

(6)

It must have agreed to comply with any rules that the Treasurer and the Minister for Communications and the Arts make to ensure that gifts made to the fund are used only for its principal purpose.

(7)

It must have agreed to give the Secretary to the Department of Communications and Arts, at intervals of 6 months, statistical information about gifts made to the public fund during the last 6 months.

30-305 What must be on the register

(1)

The Secretary to the Department of Communications and the Arts must enter on the register each ^* cultural organisation, and the public fund it maintains, that he or she has been directed to enter by the Treasurer and the Minister for Communications and the Arts.

(2)

The Treasurer and the Minister may so direct the Secretary only if the Minister has notified the Treasurer that he or she is satisfied that an organisation is a ^* cultural organisation. The notification must be in writing.

(3)

The direction must be in writing and must specify the day on which the organisation and public fund are to be entered on the register. The day must be the day on which the direction is given or a later day.

(4)

The Treasurer and the Minister for Communications and the Arts must have regard to the policies and budgetary priorities of the Commonwealth Government in deciding whether to give a direction.

30-310 Removal from the register

(1)

The Treasurer and the Minister for Communications and the Arts may direct the Secretary to the Department of Communications and the Arts to remove a ^* cultural organisation, and the public fund it maintains, from the register.

(2)

The direction must be in writing and must specify the day on which the organisation and public fund are to be removed from the register. The day must be the day on which the direction is given or a later day.

Subdivision 30-G—Index to this Division

Table of sections

30-315 Index
30-320 Effect of this Subdivision

30-315 Index

(1)

The table in this section gives you an index to this Division.

(2)

It tells you:

* each topic covered by this Division; and
* where in this Division you can find the detail about each topic.

Note: In the last column there are many references in this form: item 2.2.1. These refer to items in the tables in Subdivision 30-B.

30-320 Effect of this Subdivision

This Subdivision (except this section) has effect as if it were a ^* Guide.

Note: In interpreting an operative provision, a Guide may be considered only for limited purposes: see section 950-150.

[The next Division is Division 32.]

Division 32—Entertainment expenses

Table of Subdivisions

Guide to Division 32
32-A No deduction for entertainment expenses
32-B Exceptions
32-C Definitions relevant to the exceptions
32-D In-house dining facilities (employer expenses table item 1.2)
32-E Anti-avoidance
32-F Special rules for companies and partnerships

Guide to Division 32
32-1 What this Division is about

You cannot deduct costs of providing entertainment. Nor can you deduct amounts for property that you use for providing entertainment. But there are exceptions.

Subdivision 32-A—No deduction for entertainment expenses

Table of sections

32-5 No deduction for entertainment expenses
32-10 Meaning of entertainment
32-15 No deduction for property used for providing entertainment

32-5 No deduction for entertainment expenses

To the extent that you incur a loss or outgoing in respect of providing ^* entertainment, you cannot deduct it under section 8-1. However, there are exceptions, which are set out in

Subdivision 32-B.

Note 1: Under section 8-1 you can deduct a loss or outgoing that you incur for the purpose of producing assessable income.

Note 2: If you have used your property in providing entertainment, you may not be able to deduct an amount for the property: see section 32-15.

Note 3: Section 32-75 deals with arrangements to avoid the operation of this section.

32-10 Meaning of entertainment

(1)

Entertainment means:

(a)

entertainment by way of food, drink or ^* recreation; or

(b)

accommodation or travel to do with providing entertainment by way of food, drink or ^* recreation.

(2)

You are taken to provide entertainment even if business discussions or transactions occur.

Note: These are some examples of what is entertainment:

* * business lunches
* * social functions.

These are some examples of what is not entertainment:

* * meals on business travel overnight
* * theatre attendance by a critic
* * a restaurant meal of a food writer.

32-15 No deduction for property used for providing entertainment

To the extent that you use property in providing ^* entertainment, your use of the property is taken not to be for the ^* purpose of producing assessable income if section 32-5 would stop you deducting a loss or outgoing if you incurred it in the income year in providing the entertainment.

Note: Under some provisions of this Act, in order to deduct an amount for your property, you must have used the property for the purpose of producing assessable income.

Subdivision 32-B—Exceptions

Table of sections

32-20 The main exception—fringe benefits
32-25 The tables set out the other exceptions
32-30 Employer expenses
32-35 Seminar expenses
32-40 Entertainment industry expenses
32-45 Promotion and advertising expenses
32-50 Other expenses

32-20 The main exception—fringe benefits

Section 32-5 does not stop you deducting a loss or outgoing to the extent that you incur it in respect of providing ^* entertainment by way of ^* providing a ^* fringe benefit.

But this exception does not apply to the extent that the taxable value of the ^* fringe benefit is reduced under section 63A of the Fringe Benefits Tax Assessment Act 1986.

Note 1: You may be able to deduct losses or outgoings that are fringe benefits under section 51AEA, 51AEB or 51AEC of the Income Tax Assessment Act 1936 . If you do, then you cannot deduct them under section 8-1 (about general deductions) and so this section is not relevant.

Note 2: There are other exceptions for a loss or outgoing you incur in providing a benefit that would be a fringe benefit if it were not an exempt benefit: see items 1.6 and 1.7 of the table in section 32-30.

32-25 The tables set out the other exceptions

Section 32-5 does not stop you deducting a loss or outgoing to the extent that you incur it in respect of providing ^* entertainment as described in column 2 of an item of a table in this Subdivision.

However, if column 3 of that item applies, the exception in column 2 of that item does not.

32-30 Employer expenses

Note 1: In the case of a company, items 1.1, 1.2, 1.3, 1.5 and 1.8 cover directors of the company as if they were employees: see section 32-80.

Note 2: In the case of a company, items 1.1, 1.2, 1.3 and 1.5 cover directors, employees and property of another company that is a member of the same wholly-owned group: see section 32-85.

Note 3: Item 1.8 has a special operation for partnerships: see section 32-90.

32-35 Seminar expenses

32-40 Entertainment industry expenses

32-45 Promotion and advertising expenses

32-50 Other expenses

Subdivision 32-C—Definitions relevant to the exceptions

Table of sections

32-55 In-house dining facility (employer expenses table items 1.1 and 1.2)
32-60 Dining facility (employer expenses table item 1.3)
32-65 Seminars (seminar expenses table item 2.1)

32-55 In-house dining facility (employer expenses table items 1.1
and 1.2)

An in-house dining facility is a canteen, dining room or similar facility that:

(a)

is on property you occupy; and

(b)

is operated mainly for providing food and drink to your employees; and

(c)

is not open to the public.

Note 1: In the case of a company, this definition also covers directors of the company as if they were employees: see section 32-80.

Note 2: In the case of a company, this definition also covers directors, employees and property of another company that is a member of the same wholly-owned group: see section 32-85.

32-60 Dining facility (employer expenses table item 1.3)

A dining facility is:

(a)

a canteen, dining room or similar facility; or

(b)

a cafe, restaurant or similar facility;

that is on property you occupy.

Note: In the case of a company, this definition also covers property of another company that is a member of the same wholly-owned group: see section 32-85.

32-65 Seminars (seminar expenses table item 2.1)

(1)

Seminar includes a conference, convention, lecture, meeting (including a meeting for the presentation of awards), speech, "question and answer session", training session or educational course.

(2)

In working out whether a ^* seminar goes for at least 4 hours the following are taken not to affect the seminar's continuity, nor to form part of it:

(a)

any part of the seminar that occurs during a meal;

(b)

any break during the seminar for the purpose of a meal, rest or ^* recreation.

(3)

A ^* seminar is a business meeting if its main purpose is for individuals who are (or will be) associated with the carrying on of a particular ^* business to give or receive information, or discuss matters, relating to the business.

However, the ^* seminar is not a business meeting if it:

(a)

is organised by (or on behalf of) an employer solely for either or both of these purposes:

(i)

training the employer and the employer's employees (or just those employees) in matters relevant to the employer's ^* business (or prospective ^* business);

(ii)

enabling the employer and the employer's employees (or just those employees) to discuss general policy issues relevant to the internal management of the employer's ^* business; and

(b)

is conducted on property that is occupied by a person (other than the employer) whose ^* business includes organising seminars or making property available for conducting seminars.

Note 1: In the case of a company, subsection (3) covers directors of the company as if they were employees: see section 32-80.

Note 2: In the case of a company, paragraph (3)(b) also covers property of another company that is a member of the same wholly-owned group: see section 32-85.

Note 3: Subsection (3) has a special operation for partnerships: see section 32-90.

Subdivision 32-D—In-house dining facilities (employer expenses table item 1.2)

Table of sections

32-70 $30 is assessable for each meal provided to non-employee in an in-house dining facility

32-70 $30 is assessable for each meal provided to non-employee in an in-house dining facility

(1)

Your assessable income includes $30 for a meal you provide in an ^* in-house dining facility in the income year to an individual other than your employee, but only if:

(a)

you incur a loss or outgoing in respect of providing the meal; and

(b)

because of item 1.2 of the table in section 32-30,

section 32-5 does not stop you deducting the loss or outgoing under section 8-1 (which deals with general deductions); and

(c)

the loss or outgoing is one that you can deduct under

section 8-1 for the income year or some other income year.

(2)

However, you can choose not to include in your assessable income $30 for each meal you provide in the ^* in-house dining facility in the income year to an individual other than your employee.

Note: If you do choose, you cannot rely on item 1.2 of the table in

section 32-30 as a basis for deducting a loss or outgoing you incur in respect of providing a meal.

(3)

You must choose by the day you lodge your ^* income tax return for the income year, or within a further time allowed by the Commissioner.

Subdivision 32-E—Anti-avoidance

Table of sections

32-75 Commissioner may treat you as having incurred entertainment expense

32-75 Commissioner may treat you as having incurred entertainment expense

If:

(a)

you incur a loss or outgoing under an ^* arrangement; and

(b)

someone provides ^* entertainment under the arrangement to you or someone else; and

(c)

section 32-5 would have stopped you deducting the loss or outgoing under section 8-1 (which deals with general deductions) if you had incurred it in respect of providing that entertainment;

this Division applies to you as if you had incurred the loss or outgoing in providing that entertainment, to the extent (if any) that the Commissioner thinks reasonable.

Note: This means that section 32-5 will prevent you from deducting the loss or outgoing under section 8-1 unless an exception applies.

Example: A company pays $1,000 to sponsor a football game. Under the same arrangement, the company is given a viewing box at the game. To the extent the Commissioner thinks reasonable, he or she can treat the company as having incurred the $1,000 in providing entertainment.

Subdivision 32-F—Special rules for companies and partnerships

Table of sections

32-80 Company directors
32-85 Directors, employees and property of wholly-owned group company
32-90 Partnerships

32-80 Company directors

In the case of a company, these provisions cover directors of the company as if they were the company's employees:

item 1.1 (exception for ^* in-house dining facilities) of the table in section 32-30; item 1.2 (exception for ^* in-house dining facilities) of the table in section 32-30; item 1.3 (exception for ^* dining facilities) of the table in section 32-30; item 1.5 (exception for recreational facilities) of the table in section 32-30; item 1.8 (exception for providing your employee with an allowance) of the table in section 32-30; section 32-55 (which defines in-house dining facility ); subsection 32-65(3) (which defines business meeting ).

32-85 Directors, employees and property of wholly-owned group company

Employees and directors of group company

(1)

In the case of a company, these provisions cover directors and employees of another company that is a member of the same ^* wholly-owned group as if they were the company's own directors and employees:

item 1.1 (exception for ^* in-house dining facilities) of the table in section 32-30; item 1.2 (exception for ^* in-house dining facilities) of the table in section 32-30; item 1.3 (exception for ^* dining facilities) of the table in section 32-30; item 1.5 (exception for recreational facilities) of the table in section 32-30; section 32-55 (which defines in-house dining facility ); subsection 32-60(1) (which defines dining facility ); paragraph 32-65(3)(b).

Property occupied by group company

(2)

Those provisions also cover property occupied by that other company as if the company occupied that property.

32-90 Partnerships

In the case of a partnership:

* item 1.8 (exception for providing employee with an allowance) of the table in section 32-30; and * subsection 32-65(3) (which defines business meeting );

apply to a partner in the same way as they apply to an employee of the partnership, but only for the purposes of calculating, in accordance with section 90 of the Income Tax Assessment Act 1936 , the partnership's net income or partnership loss.

[The next Division is Division 34.]

Division 34—Non-compulsory uniforms

Table of Subdivisions

Guide to Division 34
34-A Application of Division 34
34-B Deduction for your non-compulsory uniform
34-C Registering the design of a non-compulsory uniform
34-D Appeals from Industry Secretary's decision
34-E The Register of Approved Occupational Clothing
34-F Approved occupational clothing guidelines
34-G The Industry Secretary

Guide to Division 34
34-1 What this Division is about

This Division is about deductions for the costs of non-compulsory uniforms.

Table of sections

34-3 What you need to read

34-3 What you need to read

Employees

(1)

If you incur expenditure for your non-compulsory uniform, you need to read Subdivision 34-B (which is about deductions for your non-compulsory uniform), starting at section 34-10.

Employers

(2)

If you have people working for you who want to deduct expenditure of that kind, you need to read:

Subdivision 34-C (which is about registering the design of a non-compulsory uniform), starting at section 34-25; and Subdivision 34-D (which is about appeals from Industry Secretary's decision), starting at section 34-40.

Subdivision 34-A—Application of Division 34

Table of sections

34-5 This Division applies to employees, PAYE earners and others
34-7 This Division applies to employers and others

34-5 This Division applies to employees, PAYE earners and others

(1)

This Division applies not only to an individual who is an employee. It also applies to an individual who is not an employee, but who:

(a)

is a ^* PAYE earner; or

(b)

is not a ^* PAYE earner, but would be a ^* PAYE earner apart from paragraph (q) of the definition of salary or wages in subsection 221A(1) of the Income Tax Assessment Act 1936 (which excludes recipients of prescribed payments within the meaning of Division 3A of Part VI of that Act).

(2)

If an individual is not an employee, but is covered by paragraph (1)(a) or (b), this Division applies to him or her as if:

(a)

he or she were an employee; and

(b)

the entity (the notional employer ) who pays (or is liable to pay) ^* PAYE earnings because of which he or she is (or would be) a ^* PAYE earner were his or her employer; and

(c)

any other individual who receives (or is entitled to receive) ^* PAYE earnings:

(i)

because of which the other individual is (or would be) a ^* PAYE earner; and

(ii)

that the notional employer pays (or is liable to pay) to the other individual;

were the employee of the notional employer.

34-7 This Division applies to employers and others

If an entity is not an employer, but pays (or is liable to pay) ^* PAYE earnings, this Division applies to the entity as if:

(a)

it were an employer; and

(b)

an individual to whom the entity pays (or is liable to pay) ^* PAYE earnings were the entity's employee.

Subdivision 34-B—Deduction for your non-compulsory uniform

Table of sections

34-10 What you can deduct
34-15 What is a non-compulsory uniform ?
34-20 What are occupation specific clothing and protective clothing ?

34-10 What you can deduct

(1)

If you are an employee, you can deduct expenditure you incur in respect of your ^* non-compulsory uniform if:

(a)

you can deduct the expenditure under another provision of this Act; and

(b)

the ^* design of the uniform is registered under this Division when you incur the expenditure.

Note 1: This Division also applies to PAYE earners and other individuals who are not employees: see Subdivision 34-A.

Note 2: Employers apply to register designs of uniforms: see

Subdivision 34-C.

(2)

You cannot deduct the expenditure under this Act if the ^* design is not registered at the time you incur the expenditure.

(3)

However, this Division does not stop you deducting expenditure you incur in respect of your ^* occupation specific clothing or ^* protective clothing.

34-15 What is a non-compulsory uniform ?

What is a uniform?

(1)

A uniform is one or more items of clothing (including accessories) which, when considered as a set, distinctively identify you as a person associated (directly or indirectly) with:

(a)

your employer; or

(b)

a group consisting of your employer and one or more of your employer's ^* associates.

When is a uniform non-compulsory?

(2)

Your uniform is non-compulsory unless your employer consistently enforces a policy that requires you and the other employees (except temporary or relief employees) who do the same type of work as you:

(a)

to wear the uniform when working for your employer; and

(b)

not to substitute an item of clothing not included in the uniform for an item of clothing included in the uniform when working for your employer;

except in special circumstances.

34-20 What are occupation specific clothing and protective clothing?

(1) Occupation specific clothing is clothing that distinctively identifies you as belonging to a particular profession, trade, vocation, occupation or calling. To determine this, disregard any feature of the clothing that distinctively identifies you as a person associated (directly or indirectly) with:

(a)

your employer; or

(b)

a group consisting of your employer and one or more of your employer's ^* associates.

Example: Occupation specific clothing includes a nurse's uniform, a chef's checked pants and a religious cleric's ceremonial robes.

(2)

Protective clothing is clothing of a kind that you mainly use to protect yourself, or someone else, from risk of:

(a)

death; or

(b)

^* disease (including the contraction, aggravation, acceleration or recurrence of a disease); or

(c)

injury (including the aggravation, acceleration or recurrence of an injury); or

(d)

damage to clothing; or

(e)

damage to an artificial limb or other artificial substitute, or to a medical, surgical or other similar aid or appliance.

Example: Protective clothing includes overalls, aprons, goggles, hard hats and safety boots, when worn to protect the wearer.

Meaning of disease

(3)

Disease includes any mental or physical ailment, disorder, defect or morbid condition, whether of sudden onset or gradual development and whether of genetic or other origin.

Subdivision 34-C—Registering the design of a non-compulsory uniform

Table of sections

34-25 Application to register the design
34-30 Industry Secretary's decision on application
34-33 Written notice of decision
34-35 When uniform becomes registered

34-25 Application to register the design

(1)

The employer of an employee who has, or will have, a ^* non-compulsory uniform can apply to the Secretary to the Department of Industry, Science and Tourism (the Industry Secretary ) for the ^* design of the uniform to be registered.

Note: This Division also applies to entities that are not employers: see Subdivision 34-A.

Meaning of design of a uniform

(2)

The design of a ^* uniform includes features such as its colouring, construction, durability, ornamentation, pattern and shape.

Form of application

(3)

The application must be:

(a)

in writing; and

(b)

in a form approved in writing by the ^* Industry Secretary; and

(c)

accompanied by such information as the Industry Secretary requires.

34-30 Industry Secretary's decision on application

Industry Secretary must decide to grant or refuse application

(1)

After considering the application, the ^* Industry Secretary must decide to either grant or refuse the application.

Criteria for grant of application

(2)

The ^* Industry Secretary must not decide to grant an application unless he or she is satisfied that the design meets the criteria set out in the ^* approved occupational clothing guidelines.

Note: The approved occupational clothing guidelines are created under section 34-55.

When Industry Secretary taken to have refused application

(3)

The ^* Industry Secretary is taken to have refused an application if he or she does not make a decision by the later of the following times (the deadline ):

(a)

the end of 90 days (the 90-day period ) after the day the Industry Secretary receives the application;

(b)

if the Industry Secretary, by written notice given to the applicant within the 90-day period, requests the applicant to give further information about the application—the end of

90 days after the Industry Secretary receives the further information.

34-33 Written notice of decision

(1)

If the ^* Industry Secretary makes a decision to grant or refuse an application under subsection 34-30(1) before the ^* deadline, the Industry Secretary must give the applicant written notice of the decision.

Reasons for refusal

(2)

If the notice is a notice of a decision to refuse the application, it must also set out the reasons for the refusal.

Statements to accompany notice of decision

(3)

The notice of the decision is to include the statements set out in subsections (4) and (5).

(4)

There must be a statement to the effect that, subject to the Administrative Appeals Tribunal Act 1975 , an application may be made to the ^* AAT, by (or on behalf of) any entity whose interests are affected by the decision, for review of the decision.

(5)

There must also be a statement to the effect that a request may be made under section 28 of that Act by (or on behalf of) such an entity for a statement:

(a)

setting out the findings on material questions of fact; and

(b)

referring to the evidence or other material on which those findings were based; and

(c)

giving the reasons for the decision;

except where subsection 28(4) of that Act applies.

Failure does not affect validity

(6)

If the ^* Industry Secretary fails to comply with subsection (4) or (5), that failure does not affect the validity of his or her decision.

34-35 When uniform becomes registered

If the ^* Industry Secretary decides to grant the application, the ^* design of the ^* uniform becomes registered on:

(a)

the day the decision is made; or

(b)

if the applicant requests—such earlier day as the Industry Secretary specifies.

Note: When the design becomes registered, an entry for the design is made on the Register of Approved Occupational Clothing.

Subdivision 34-E is about the Register.

Subdivision 34-D—Appeals from Industry Secretary's decision

Table of sections

34-40 Review of decisions by the Administrative Appeals Tribunal

34-40 Review of decisions by the Administrative Appeals Tribunal

Applications may be made to the ^* AAT for review of a decision made by the ^* Industry Secretary under subsection 34-30(1).

Subdivision 34-E—The Register of Approved Occupational Clothing

Table of sections

34-45 Keeping of the Register
34-50 Changes to the Register

34-45 Keeping of the Register

(1)

The ^* Industry Secretary must keep the Register of Approved Occupational Clothing, listing the designs that are required to be entered on the Register because of this Division.

Register to be open for inspection