Tax Planning Strategy 165 | Trade, Business and Professional Body Subscriptions

Subscriptions, joining fees, levies and contributions paid to professional associations may be deductible under s 8-1 and/or s 25-55. Payments to trade and professional associations may be in the form of joining fees, periodic subscriptions or levies and other contributions. Deductions for periodic subscriptions are available under s 8-1 where it is incidental and relevant to the derivation of the taxpayer’s assessable income (whether as an employee or business owner). The decision in each case is a question of fact and degree.  

For example, taxpayers who are practicing in a particular profession can claim a deduction for periodic subscriptions to professional associations which are concerned with providing specialised services to people in the taxpayer’s profession (TR 2000/7). E.g. an accountant paying CPA Australia subscriptions.

A tyre manufacturer/retailer paid an annual membership fee to a company whose policy and activities were directed towards encouraging the construction, maintenance and use of roads. A deduction was allowed on the basis that increased road usage would increase demand for the taxpayer’s products ((1963) 13 TBRD Case N52).