Income Tax Assessment Act 1997



Division 87 - Personal services businesses  

Subdivision 87-A - General  

SECTION 87-25   The employment test for a personal services business  

An individual meets the employment test in an income year if:

(a) the individual engages one or more entities (other than *associates of the individual that are not individuals) to perform work; and

(b) that entity performs, or those entities together perform, at least 20% (by *market value) of the individual's principal work for that year.

A *personal services entity meets the employment test in an income year if:

(a) the entity engages one or more other entities to perform work, other than:

(i) individuals whose *personal services income is included in the entity's *ordinary income or *statutory income; or

(ii) *associates of the entity that are not individuals; and

(b) that other entity performs, or those other entities together perform, at least 20% (by *market value) of the entity's principal work for that year.


If the *personal services entity is a partnership, work that a partner performs is taken, for the purposes of subsection (2), to be work that the personal services entity engages another entity to perform.

An individual or a *personal services entity also meets the employment test in an income year if, for at least half the income year, the individual or entity has one or more apprentices.


Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.