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P14 Payments to associated persons

Last updated 24 October 2011

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


Go to P15 Intangible depreciating assets first deducted.


Read on.

You need to know

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

You must also include amounts of salary or wages paid to your relatives and partnerships in which your relative is a partner 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, and
  • other amounts paid - for example, retiring gratuities, bonuses and commissions.

Excessive or unreasonable payments to your relative or a partnership in which your relative is a partner may not be deductible. The PSI rules (see P1 Personal services income) 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.