Income tax: is a prescribed fee paid by a person to the Industrial Registrar in lieu of an annual subscription to a trade union or employee association an allowable deduction under section 8-1 of the Income Tax Assessment Act 1997?

Yes, where the person would be entitled to a deduction for the annual subscription if it was paid to the appropriate trade union or employee association, that person is entitled to a deduction for the prescribed fee paid.

A person whose conscientious beliefs prevent them from being a member of a trade union or employee association is able to pay a prescribed fee to the Industrial Registrar under section 267 of the Workplace Relations Act 1996 (this section was present in similar form in the preceding Acts - the Conciliation and Arbitration Act 1904 and the Industrial Relations Act 1988 ). Payment of the prescribed fee results in the person receiving a certificate that is valid for 12 months and enables that person to be treated as if they are a paid-up member of the respective trade union or employee association for the duration of the certificate.

This Determination should be read in conjunction with Taxation Ruling TR 2000/7 which explains the circumstances under which a deduction is allowable for subscriptions to trade, business or professional associations, including trade unions and employee associations.

There are no material differences between this Taxation Determination and Taxation Ruling IT 296. Taxation Ruling IT 296 is now withdrawn.