Introduction

The purpose of this paper is to document the understanding of the association about the taxation position of members and others who make payments to it. It was prepared by the Foundation Treasurer in February 2003, on the basis of his prior background, information available on the ATO web-site, and informal advice from Treasurers of two other associations.

THE INFORMATION IN THIS DOCUMENT IS NOT ADVICE

The information in this document is merely observations by the Foundation Treasurer, which may be of assistance to members and others in working out their own tax position. If these questions are of any importance to you, seek professional advice from someone appropriate.

G.S.T.

There is no GST component within any payment made to A.P.F., and therefore there is nothing that can be claimed back from the ATO

The Tax-Deductibility of Payments by Individuals

Individuals includes consumers, citizens and unincorporated businesses.

What an individual does and doesn’t represent to the ATO is that person’s own business, and nothing to do with A.P.F. However, the following observations are offered:

  • Personal subscriptions would only be tax-deductible if the person could reasonably claim that the membership was a factor in the earning of income. (For some members, that’s probably tenable)
  • Personal sponsorships would only be tax-deductible if the person could reasonably claim that the sponsorship was a factor in the earning of income. (For some members, that’s possibly tenable)
  • Personal donations appear not to be tax-deductible, even if the person could reasonably claim that the donation was a factor in the earning of income. That’s because, under current taxation law, the APF cannot qualify under any of the available categories of ‘deductible gift recipient’ (DGR)

The Tax-Deductibility of Payments by Bodies Corporate

The term ‘body corporate’ encompasses corporations, incorporated associations and bodies corporate of strata titles and community titles (and some other bodies such as trusts) that are deemed in law to exist and to be distinct from the people who are their members.

What a body corporate does and doesn’t represent to the ATO is that organisation’s own business, and nothing to do with A.P.F. However, the following observations are offered:

  • Corporate subscriptions would only be tax-deductible if the body could reasonably claim that the membership was a factor in the earning of income. (For companies such as Credit Advantage, AmEx, etc., that would seem to be fairly tenable)
  • Corporate sponsorships would only be tax-deductible if the body could reasonably claim that the sponsorship was a factor in the earning of income. (For some companies, that’s possibly tenable. For example, if Credit Advantage sponsored an APF meeting about a government proposal, or flights by APF representatives to present to a Senate Committee in Canberra, and this was visible to members and/or others, then it could conceivably be deductible)
  • Corporate donations appear not to be tax-deductible, even if the body could reasonably claim that the donation was a factor in the earning of income. That’s because, under current taxation law, the APF cannot qualify under any of the available categories of ‘deductible gift recipient’ (DGR)