Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-42 - PERSONAL SERVICES INCOME  

Division 86 - Alienation of personal services income  

Guide to Division 86  

SECTION 86-5   A simple description of what this Division does  

86-5(1)    
This diagram shows an example of a simple arrangement for the alienation of personal services income.

Note 1:

Solid lines indicate actual payments between the parties. Dotted lines indicate other interactions between the parties.

Note 2:

This Division also applies to different and more complex arrangements.

86-5(2)    
This Division has the effect of attributing the personal services entity's income from the personal services to the individual who performed them (unless the income is promptly paid to the individual as salary). Certain deduction entitlements of the personal services entity can reduce the amount of the attribution.