TAX DEDUCTIBILITY

BAPA disclaims responsibility for the accuracy of this information. You must seek independent advice from a tax agent or accountant or other professional person.

Also see: Undeducted Purchase Price (UPP)

A member of BAPA has secured a ruling that allows a deduction for contributions to the Fighting Fund.

This ruling is called a "Private Ruling", but it will be made public on the ATO web site.

It may not make much difference to your tax if your income is moderate or your contribution was moderate, because you may already be below the threshold for tax after taking into account the senior Australians tax offset.

If your contribution was substantial you should make sure either that you thoroughly understand the rulings or you have professional help from a tax agent or accountant. In either case, make sure that your explanation is clear, so that the worst they can do to you is knock back your claim.

We believe that the terms of the ruling are wide enough to cover the new member fee of $20 as well as any amounts given for the fighting fund. Only amounts contributed on or after 1st July 2002 and before 1st July 2003 count. We do not know for certain that the deduction will still be allowed for the new tax year 2003/2004.

The amount you are claiming is not a donation, and should not be claimed under question D8 of the tax return. It should be entered in the supplementary section of the tax return at question D15 - Other deductions - not claimable at items D1 to D14 or elsewhere on your tax return.

This question has a write-in panel in which you have to describe the nature of the deduction.

Be sure not to call it a "donation". We have had advice dating back to 1992 that a donation to BAPA is not deductible under D8 because BAPA does not qualify as a public benevolent institution. Instead, call it "a subscription to BAPA", and attach an explanation on a separate sheet. You are claiming under taxation ruling TR 2000/7, as amplified by private ruling 29897.

If you have a taxation agent or accountant doing your tax return, draw his/her attention to the general taxation ruling, which is on the ATO web site but difficult to find because of the labyrinth of menus

Here is the text of the general taxation ruling under which the deduction is allowed.

At Paragraph 55 of Taxation Ruling TR 2000/7, the Commissioner states:

55. Pensioners or self-funded retirees may choose to join a representative association. In considering a claim for a deduction under section 8-1 of the Act for payments to these associations, regard must be given to the objects and activities of each particular association. If the activities of a pensioner or retiree association are incidental and relevant to the gaining of the member's assessable income, subscriptions paid to these associations is deductible under section 8-1 of the Act. An example of such activities is where an association is primarily established to provide investment or taxation information to members.

 Copy of relevant section of the Tax Form

Wording to be used as "Description of claim" under D15 on the Tax Form

The deduction I am claiming at question D15 is a contribution to the British Australian Pensioner Association Incorporated. The activities of the association are consistent with Taxation Ruling TR 2000/7 as amplified by private ruling 29897.

UPP (Undeducted Purchase Price)

Another of our members points to his experience with the UPP.

In addition to the 8% UPP on my UK age pension, I receive a UPP for my Teachers' Pension.  I had to obtain my contribution record from the Teachers' Pension Agency (easily provided on request), and submit this to the ATO who calculated my UPP (in pounds sterling)  I then have to find the average exchange rate for the year - fairly easily found at the ATO web-site, and calculate my UPP for the present year.


Back to Information page

Back to Home Page