Document ID: chunk:federal_register_of_legislation:C2004A00662:clause:1_3:p16
Version: federal_register_of_legislation:C2004A00662
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 16/20)
Character Range: 41235–44131

business determination is in force relating to an individual whose *personal services income is included in the entity's *ordinary income or *statutory income.

87‑60  Personal services business determinations for individuals

Making etc. personal services business determinations

 (1) The Commissioner may, by giving written notice to an individual:
 (a) make a personal services business determination relating to the individual; or
 (b) vary such a determination.

 (2) The Commissioner may, in the notice, specify:
 (a) the day on which the determination or variation takes effect, or took effect;
 (b) the period for which the determination has effect;
 (c) conditions to which the determination is subject.

Matters about which the Commissioner must be satisfied

 (3) The Commissioner must not make the determination unless satisfied that, in the income year during which the determination first has effect, or is taken to have first had effect:
 (a) the individual:
 (i) could reasonably be expected to meet, or met, the employment test under section 87‑25 or the business premises test under section 87‑30, or both; or
 (ii) but for unusual circumstances applying to the individual in that year, could reasonably have been expected to meet, or would have met, at least one of the 3 *personal services business tests; and
 (b) the individual's *personal services income could reasonably be expected to be, or was, from the individual 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 individual starts a *business during the income year, and can reasonably be expected to meet the test in subsequent income years; or
 (b) the individual 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 individual's *personal services income is for producing a result; and
 (b) the individual is required to supply the *plant and equipment, or tools of trade, needed to perform the work from which the individual produces the result; and
 (c) the individual