Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p13
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 13/34)
Character Range: 1692452–1695266

for an individual whose *personal services income is included in the entity's *ordinary income or *statutory income.
For deductions for superannuation contributions: see Subdivision AA of Division 3 of Part III of the Income Tax Assessment Act 1936.
 (2) However, if:
 (a) the individual performs less than 20% (by *market value) of the entity's principal work; and
 (b) the individual is an *associate of another individual whose *personal services income is included in the entity's *ordinary income or *statutory income;
the entity's deduction cannot exceed the amount it would have to contribute, for the benefit of the individual, to a *complying superannuation fund or an *RSA in order to ensure that it did not have any *individual superannuation guarantee shortfalls in respect of the individual for any of the *quarters in the income year.
 (3) To work out the amount the entity would have to contribute for the purposes of subsection (2), the individual's salary or wages, for the purposes of the Superannuation Guarantee (Administration) Act 1992, are taken to be the amount that section 86‑60 does not prevent the entity deducting for salary or wages it paid to the individual.
Note: Section 86‑60 will apply the limitations under sections 85‑10 and 85‑20 on an individual's entitlement to deductions (but see paragraph 85‑10(2)(e) on employment of 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 *depreciating asset, 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 the decline in value of the asset, under this Act if:
 (c) the entity incurs the amount in gaining or producing, or uses or installs the depreciating asset 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.

86‑87  Personal services entity cannot deduct net personal services income loss
  The total amount of the deductions to which a *personal services entity is entitled for an income year is reduced by the amount of any deduction that an individual, whose *personal services income is ordinary or statutory income of the