Document ID: chunk:federal_register_of_legislation:F2017L00228:reg:3:p1
Version: federal_register_of_legislation:F2017L00228
Segment Type: reg
Provision Reference: reg 3 (pt 1/5)
Character Range: 1692–4319

3  Revocation
  The Social Security (Attribution of Income — Ineligible Deductions) Determination 2004 is revoked.
4 Definitions
  In this Determination:
Act means the Social Security Act 1991.
assessable income means assessable income for the purposes of ITAA 1936 or ITAA 1997.
ITAA 1936 means the Income Tax Assessment Act 1936.
ITAA 1997 means the Income Tax Assessment Act 1997.

Part 2 Ineligible deductions and ineligible parts of deductions
Division 2.1 Ineligible deductions
5 Ineligible deductions — ITAA 1936 and ITAA 1997
 (1) For subsection 1208B (3) of the Act:
 (a) an allowable deduction for the purposes of a provision of ITAA 1936 mentioned in an item in Part 1 of Schedule 1 is an ineligible deduction; and
 (b) an allowable deduction for the purposes of a provision of ITAA 1997 mentioned in an item in Part 2 of Schedule 1 is an ineligible deduction.
 (2) For subsection 1209C (3) of the Act:
 (a) an allowable deduction for the purposes of a provision of ITAA 1936 mentioned in an item in Part 1 of Schedule 2 is an ineligible deduction; and
 (b) an allowable deduction for the purposes of a provision of ITAA 1997 mentioned in an item in Part 2 of Schedule 2 is an ineligible deduction.
Division 2.2 Ineligible parts of deductions
6 Ineligible part of amount of salary or wages
 (1) For subsection 1208B (5) of the Act, this section applies if:
 (a) a company or a trust pays a wage or salary (the amount paid) to an individual (the wage or salary earner) who is:
 (i) an attributable stakeholder of the company or trust; or
 (ii) an associate, within the meaning of paragraph 1207C (1) (e), (h), (i) or (j) of the Act, of an attributable stakeholder of the company or trust; and
 (b) the amount paid is an allowable deduction of a kind mentioned in paragraph 1208B (1) (a) of the Act; and
 (c) the amount paid exceeds an amount that represents reasonable remuneration for the wage or salary earner having regard to:
 (i) the period to which the amount paid relates; and
 (ii) the work performed by the wage or salary earner during that period; and
 (iii) the relevant qualifications or skills of the wage or salary earner; and

 (iv) remuneration paid to individuals, with comparable qualifications or skills, performing work that is comparable to that performed by the wage or salary earner; and
 (v) other relevant circumstances affecting the employment of the wage or salary earner.

        (2)  For subsection 1209C (5) of the Act, this section applies if:
 (a) a company or trust that carries on a primary production enterprise pays a wage or salary (the amount paid) to an individual (the wage or