Income Tax Assessment Act 1997



Division 85 - Deductions relating to personal services income  

Operative provisions  

SECTION 85-25   Deductions for superannuation for associates  


You cannot deduct under this Act a contribution you make to a fund or an *RSA to provide for *superannuation benefits payable for your *associate, to the extent that the associate ' s work for you relates to gaining or producing your *personal services income.

Subsection (1) does not stop you deducting a contribution to the extent that your *associate ' s performance of work forms part of the principal work for which you gain or produce your *personal services income.


However, if subsection (2) applies, your deduction cannot exceed the amount you would have to contribute, for the benefit of the *associate, to a *complying superannuation fund or an *RSA in order to ensure that you did not have any *individual superannuation guarantee shortfalls in respect of the associate for any of the *quarters in the income year.

To work out the amount you would have to contribute for the purposes of subsection (3), the *associate ' s salary or wages, for the purposes of the Superannuation Guarantee (Administration) Act 1992 , are taken to be the amount that neither section 85-10 nor 85-20 prevent you deducting for salary or wages you paid to the associate.


See paragraph 85-10(2)(e) for deductions relating to employment of associates.


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