Income Tax Assessment Act 1997
View history note
Hide history noteAn 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.
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.
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