Document ID: chunk:federal_register_of_legislation:C2004A00662:clause:1_3:p12
Version: federal_register_of_legislation:C2004A00662
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 12/20)
Character Range: 30718–33635

associates).

86‑80  Salary or wages promptly paid

  Section 86‑60 does not stop a *personal services entity deducting an amount for salary or wages it pays to the individual referred to in that section before the end of the 14th day after the *PAYG payment period during which the amount became *ordinary income or *statutory income of the entity.

86‑85  Deduction entitlements of personal services entities for amounts included in an individual's assessable income

  The fact that a *personal services entity:
 (a) incurs an amount in gaining or producing an individual's assessable income; or
 (b) uses a unit of *plant, or has it installed ready for use, for the *purpose of producing assessable income of an individual;
does not stop the entity deducting the loss or outgoing, or deducting an amount for depreciation of the plant, under this Act if:
 (c) the entity incurs the amount in gaining or producing, or uses or installs the plant for the purpose of producing, its *ordinary income or *statutory income; and
 (d) the income is included in the individual's assessable income under section 86‑15.

86‑90  Application of Divisions 28 and 900 to personal services entities

  This Division does not have the effect of applying Division 28 (about car expenses) or Division 900 (about substantiation rules) to a *personal services entity.

Note: Divisions 28 and 900 can still apply to a personal services entity that is a partnership: see subsections 28‑10(2) and 900‑5(2).

Division 87—Personal services businesses

Table of Subdivisions

Guide to Division 87

87‑A General
87‑B Personal services business determinations

Guide to Division 87

87‑1  What this Division is about

      Divisions 85 and 86 do not apply to personal services income that is income from conducting a personal services business.
      There are 3 tests for what is a personal services business, but, if 80% or more of your personal services income is from one source, the Commissioner must have made a personal services business determination.

87‑5  Diagram showing the operation of this Division

  This diagram shows how this Division operates to ascertain whether personal services income is income from conducting a personal services business.

Subdivision 87‑A—General

Table of sections

87‑10 Object of this Division
87‑15 What is a personal services business
87‑20 The unrelated clients test for a personal services business
87‑25 The employment test for a personal services business
87‑30 The business premises test for a personal services business
87‑35 Personal services income from Australian government agencies

87‑10  Object of this Division

  The object of this Division is to define *personal services businesses in a way that ensures that it covers genuine businesses but not situations that are merely arrangements for dealing with the *personal services income of individuals.

87‑15  What is a