Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-42 - PERSONAL SERVICES INCOME  

Division 85 - Deductions relating to personal services income  

Operative provisions  

SECTION 85-20   Deductions for payments to associates etc.  

85-20(1)    
You cannot deduct under this Act:

(a) any payment you make to your *associate; or

(b) any amount you incur arising from an obligation you have to your associate;

to the extent that the payment or amount relates to gaining or producing your *personal services income.

85-20(2)    
Subsection (1) does not stop you deducting a payment or amount to the extent that it relates to engaging your *associate to perform work that forms part of the principal work for which you gain or produce your *personal services income.

85-20(3)    

An amount or payment that you cannot deduct because of this section is neither assessable income nor *exempt income of your *associate.