INCOME TAX ASSESSMENT ACT 1997
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.
(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 superannuation guarantee shortfalls in respect of the individual for any of the *quarters in the income year.
To work out the amount the entity would have to contribute for the purposes of subsection (2), the individual ' s salary or wages, for the purposes of the Superannuation Guarantee (Administration) Act 1992 , are taken to be the amount that section 86-60 does not prevent the entity deducting for salary or wages it paid to the individual.