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  • P14 Payments to associated persons



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    You need to know

    These are amounts, including salary, wages, commissions or allowances, paid to your relatives. These also include superannuation contributions paid for the benefit of your relatives.

    You must also include amounts of salary or wages paid to your relatives and a partnership in which your relatives are partners at G item P13 on your schedule.

    You need to keep the following records:

    • full name of relatives or related partnerships
    • age, if under 18 years old
    • relationship
    • nature of duties performed
    • hours worked
    • total remuneration
    • salary or wages claimed as deductions, and
    • other amounts paid - for example, retiring gratuities, bonuses and commissions.

    Excessive or unreasonable payments to your relatives, or a partnership in which your relatives are partners, may not be deductible. The PSI rules (see P1 Personal services income (PSI)) also limit deductions for payments to associates.

    Completing this item

    Step 1   Add up payments made to relatives and related partnerships from each business.

    Step 2   Write the total at H item P14 on page 4 of your schedule. Do not show cents.

    Last modified: 04 Mar 2016QC 25649