Political Donations

Legislation has now passed abolishing tax deductions for donations to political parties, independent candidates and members.

Businesses will no longer be able to deduct political donations, either under the existing $1,500 capped specific deduction in the tax law, or as a general business deduction.

The measure applies retrospecitively from 1st July 2008, meaning businesses will not be able to deduct their political donations from that day.

In reaching this decision, the Government has agreed not to remove deductions for individuals.

Individuals will still be able to claim deductions for donations to political parties, independent candidates and members up to the $1,500 cap.