Income Tax Assessment Act 1997
CHAPTER 2
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LIABILITY RULES OF GENERAL APPLICATION
PART 2-42
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PERSONAL SERVICES INCOME
Division 86
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Alienation of personal services income
Subdivision 86-B
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Entitlement to deductions
SECTION 86-75
Superannuation
86-75(1)
Section 86-60 does not stop a * personal services entity deducting a contribution the entity makes to a fund or an * RSA for the purpose of making provision for * superannuation benefits payable for an individual whose * personal services income is included in the entity ' s * ordinary income or * statutory income.
86-75(2)
However, if: (a) the individual performs less than 20% (by * market value) of the entity ' s principal work; and (b) the individual is an * associate of another individual whose * personal services income is included in the entity ' s * ordinary income or * statutory income;
86-75(3)
To work out the amount the entity would have to contribute under subsection (2) , assume under the Superannuation Guarantee (Administration) Act 1992 that the entity ' s payments of qualifying earnings (within the meaning of that Act) to the individual do not include any amounts that section 86-60 of this Act would prevent the entity from deducting.
View history note
Hide history noteSection 86-60 does not stop a * personal services entity deducting a contribution the entity makes to a fund or an * RSA for the purpose of making provision for * superannuation benefits payable for an individual whose * personal services income is included in the entity ' s * ordinary income or * statutory income.
86-75(2)
However, if: (a) the individual performs less than 20% (by * market value) of the entity ' s principal work; and (b) the individual is an * associate of another individual whose * personal services income is included in the entity ' s * ordinary income or * statutory income;
the entity ' s deduction cannot exceed the amount it would have to contribute, for the benefit of the individual, to a * complying superannuation fund or an * RSA in order to ensure that it did not have any * individual final superannuation guarantee shortfalls for the individual and any * QE days in the income year.
86-75(3)
To work out the amount the entity would have to contribute under subsection (2) , assume under the Superannuation Guarantee (Administration) Act 1992 that the entity ' s payments of qualifying earnings (within the meaning of that Act) to the individual do not include any amounts that section 86-60 of this Act would prevent the entity from deducting.
Note:
Section 86-60 will apply the limitations under sections 85-10 and 85-20 on an individual ' s entitlement to deductions (but see paragraph 85-10(2)(e) on employment of associates).
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