Income tax: are joining fees or annual fees paid for a 'consumer loyalty program' an allowable deduction?

No, except when paid by an employer as a cost of employing a person, as there is no nexus between the expenditure and the derivation of assessable income.

A 'consumer loyalty program' is defined in Taxation Ruling TR 98/D9 'Income tax and fringe benefits tax: flight rewards received under frequent flyer and other similar consumer loyalty programs'.

If you wish to comment on this draft Determination, please send your comments by 21 August 1998 to: Contact officer details have been removed following publication of the final determination.