A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-42 - PERSONAL SERVICES INCOME    View history reference

Division 87 - Personal services businesses    View history reference

Subdivision 87-A - General    View history reference

SECTION 87-18  The results test for a personal services business  

 View history reference

87-18(1)  

An individual meets the results test in an income year if, in relation to at least 75% of the individual's *personal services income (not including income referred to in subsection (2)) during the income year:


(a) the income is for producing a result; and


(b) the individual is required to supply the *plant and equipment, or tools of trade, needed to perform the work from which the individual produces the result; and


(c) the individual is, or would be, liable for the cost of rectifying any defect in the work performed.

87-18(2)  

Paragraph (1)(a) 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.
 View history reference

87-18(3)  

A *personal services entity meets the results test in an income year if, in relation to at least 75% of the *personal services income of one or more individuals that is included in the personal services entity's *ordinary income or *statutory income during the income year:


(a) the income is for producing a result; and


(b) the personal services entity is required to supply the *plant and equipment, or tools of trade, needed to perform the work from which the personal services entity produces the result; and


(c) the personal services entity is, or would be, liable for the cost of rectifying any defect in the work performed.

87-18(4)  

For the purposes of paragraph (1)(a), (b) or (c) or (3)(a), (b) or (c), regard is to be had to whether it is the custom or practice, when work of the kind in question is performed by an entity other than an employee:


(a) for the *personal services income from the work to be for producing a result; and


(b) for the entity to be required to supply the *plant and equipment, or tools of trade, needed to perform the work; and


(c) for the entity to be liable for the cost of rectifying any defect in the work performed;

as the case requires.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page