Document ID: chunk:federal_register_of_legislation:C2004A00662:clause:1_3:p4
Version: federal_register_of_legislation:C2004A00662
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 4/20)
Character Range: 9973–12885

superannuation benefits payable for your *associate, to the extent that the associate's work for you relates to gaining or producing your *personal services income.

 (2) Subsection (1) does not stop you deducting a contribution to the extent that your *associate's performance of work forms part of the principal work for which you gain or produce your *personal services income.

 (3) However, if subsection (2) applies, your deduction cannot exceed the amount you would have to contribute, for the benefit of the *associate, to a *complying superannuation fund or an *RSA in order to ensure that you did not have an *individual superannuation guarantee shortfall in respect of the associate.

 (4) To work out the amount you would have to contribute for the purposes of subsection (3), the *associate's salary or wages, for the purposes of the Superannuation Guarantee (Administration) Act 1992, are taken to be the amount that neither section 85‑10 nor 85‑20 prevent you deducting for salary or wages you paid to the associate.

Note: See paragraph 85‑10(2)(e) for deductions relating to employment of associates.

85‑30  Exception: personal services businesses

  This Division does not apply to an amount, payment or contribution to the extent that the amount, payment or contribution relates to income from you conducting a *personal services business.

85‑35  Exception: employees and office holders

  This Division does not apply to an amount, payment or contribution to the extent that the amount, payment or contribution relates to *personal services income that you receive as:
 (a) an employee; or
 (b) an individual referred to in paragraph 12‑45(1)(a), (b), (c), (d) or (e) (about payments to office holders) in Schedule 1 to the Taxation Administration Act 1953.

85‑40  Application of Subdivision 900‑B to individuals who are not employees

  This Division does not have the effect of applying Subdivision 900‑B (about substantiating work expenses) to an individual who is not an employee.

Division 86—Alienation of personal services income

Table of Subdivisions

Guide to Division 86

86‑A General
86‑B Entitlement to deductions

Guide to Division 86

86‑1  What this Division is about

      Income from the rendering of your personal services is treated as your assessable income if it is the income of another entity and is not promptly paid to you as salary.
      However, this does not apply if the other entity is conducting a personal services business.
      There are limits to the other entity's entitlement to deductions to offset against the amount treated as your income.

86‑5  A simple description of what this Division does

 (1) This diagram shows an example of a simple arrangement for the alienation of personal services income.

Note 1: Solid lines indicate actual payments between the parties. Dotted lines indicate other interactions between the parties.

Note