Document ID: chunk:federal_register_of_legislation:C2004A00662:clause:1_3:p18
Version: federal_register_of_legislation:C2004A00662
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 18/20)
Character Range: 46423–49171

or would have met, at least one of the 3 *personal services business tests; and
 (b) the individual's *personal services income included in the entity's *ordinary income or *statutory income could reasonably be expected to be, or was, from the entity conducting activities that met:
 (i) if subparagraph (a)(i) applies—the employment test under section 87‑25 or the business premises test under section 87‑30, or both; or
 (ii) if subparagraph (a)(ii) applies—at least one of the 3 personal services business tests; and
 (c) 80% or more of the individual's personal services income could reasonably be expected to be, or was, income from the same entity, or from the same entity and that entity's *associates.

 (4) For the purposes of subparagraph (3)(a)(ii) but without limiting the scope of that subparagraph, unusual circumstances include providing services to an insufficient number of entities to meet the unrelated clients test under section 87‑20 if:
 (a) the*personal services entity starts a *business during the income year, and can reasonably be expected to meet that test in subsequent income years; or
 (b) the personal services entity provides services to only one entity during the income year, but met the test in one or more preceding income years and can reasonably be expected to meet the test in subsequent income years.

Further grounds for making the determination

 (5) However, the Commissioner may make the determination if satisfied that:
 (a) the *personal services entity's *ordinary income or *statutory income, that is an individual's *personal services income, is income for producing a result; and
 (b) the personal services entity is required to supply the *plant and equipment, or tools of trade, needed to perform the work from which the personal services entity produces the result; and
 (c) the personal services entity is, or would be, liable for the cost of rectifying any defect in the work performed; and
 (d) 80% or more of the individual's personal services income could reasonably be expected to be, or was, income from the same entity, or from the same entity and that entity's *associates.

 (6) In determining whether the *personal services entity meets paragraph (5)(a), (b) or (c), the Commissioner may have regard to whether it is the custom or practice, when work of that kind is performed by an entity other than an employee:
 (a) for the personal services income from the work to be for producing a result; and
 (b) for the entity to be required to supply the plant and equipment, or tools of trade, needed to perform the work; and
 (c) for the entity to be liable for the cost of rectifying any defect in the work performed;
as the case requires.

 (7) Subsection (5) can apply whether or not