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 85-25   Deductions for superannuation for associates  

85-25(1)    

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.

85-25(2)    
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.

85-25(3)    

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.

85-25(4)    
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.

Note:

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