Income Tax Assessment Act 1997
An individual or *personal services entity conducts a personal services business if:
(a) for an individual - a *personal services business determination is in force relating to the individual ' s *personal services income; or
(b) for a personal services entity - a personal services business determination is in force relating to an individual whose personal services income is included in the entity ' s *ordinary income or *statutory income; or
(c) in any case - the individual or entity meets at least one of the 4 *personal services business tests in the income year for which the question whether the individual or entity is conducting a personal services business is in issue.
For personal services business determinations, see Subdivision 87-B .
Under subsection (3), the personal services business tests, apart from the results test under section 87-18 , do not apply if 80% or more of your personal services income is from one source (but they can still be used in deciding whether to make a personal services business determination).87-15(2)
The 4 personal services business tests are:
(a) the results test under section 87-18 ; and
(b) the unrelated clients test under section 87-20 ; and
(c) the employment test under section 87-25 ; and
(d) the business premises test under section 87-30 . 87-15(3)
However, if 80% or more of an individual ' s *personal services income (not including income referred to in subsection (4)) during an income year is income from the same entity (or one entity and its *associates), and:
(a) the individual ' s personal services income is not included in a *personal services entity ' s *ordinary income or *statutory income during an income year, and the individual does not meet the results test under section 87-18 in that income year; or
(b) the individual ' s personal services income is included in a personal services entity ' s ordinary income or statutory income during an income year, and the entity does not, in relation to the individual, meet the results test under section 87-18 in that income year;
the individual ' s personal services income is not taken to be from conducting a *personal services business unless:
(c) when the personal services income is gained or produced, a *personal services business determination is in force relating to the individual ' s personal services income; and
(d) if the determination was made on the application of a personal services entity - the individual ' s personal services income is income from the entity conducting the personal services business.
Sections 87-35 and 87-40 affect the operation of subsection (3) in relation to Australian government agencies and certain agents.
Subsection (3) does not apply to income:
(a) that the individual receives as an employee; or
(b) that the individual receives as an individual referred to in paragraph 12-45(1)(a) , (b), (c), (d) or (e) (payments to office holders) in Schedule 1 to the Taxation Administration Act 1953 ; or
(c) to the extent that it is a payment referred to in section 12-47 (payments to *religious practitioners) in that Schedule.
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