P14 Payments to associated persons

Warning:

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

End of attention

Did you make any payments to associated persons as a business expense?

You need to know

These are amounts, including salary or wages, commissions, superannuation contributions or allowances paid to your relatives or a partnership in which your relative is a partner.

Amounts of salaries or wages paid to relatives and related partnerships should also be included at G item P13 on your schedule.

You need to keep the following records:

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

Excessive payments to a relative or related partnership may not be deductible. The PSI rules (see item P1) also limit deductions for payments to associates.