Income Tax Assessment Act 1997
A *personal services entity cannot deduct under this Act an amount to the extent that it relates to gaining or producing an individual's *personal services income, unless:
(a) the individual could have deducted the amount under this Act if the circumstances giving rise to the entity's entitlement to deduct the amount had applied instead to the individual; or
In particular, Division 85 specifies limits on an individual's entitlements to deductions relating to the individual's personal services income.
(b) the entity receives the individual's *personal services income in the course of conducting a *personal services business.