Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-42 - PERSONAL SERVICES INCOME  

Division 87 - Personal services businesses  

Subdivision 87-B - Personal services business determinations  

SECTION 87-60   Personal services business determinations for individuals  

Making etc. personal services business determinations

87-60(1)    
The Commissioner may, by giving written notice to an individual:

(a) make a personal services business determination relating to the individual; or

(b) vary such a determination.

87-60(2)    
The Commissioner may, in the notice, specify:

(a) the day on which the determination or variation takes effect, or took effect;

(b) the period for which the determination has effect;

(c) conditions to which the determination is subject.

Matters about which the Commissioner must be satisfied

87-60(3)    

The Commissioner must not make the determination unless satisfied that, in the income year during which the determination first has effect, or is taken to have first had effect, the conditions in one or more of subsections (3A), (3B), (5) and (6) are met.

First alternative - results, employment or business premises test met or reasonably expected to be met

87-60(3A)    

The conditions in this subsection are that:

(a) the individual could reasonably be expected to meet, or met, the results test under section 87-18 , the employment test under section 87-25 , the business premises test under section 87-30 or more than one of those tests; and

(b) the individual's *personal services income could reasonably be expected to be, or was, from the individual conducting activities that met one or more of those tests.

Second alternative - unusual circumstances prevented the results, employment or business premises test from being met

87-60(3B)    

The conditions in this subsection are that:

(a) but for unusual circumstances applying to the individual in that year, the individual could reasonably have been expected to meet, or would have met, the results test under section 87-18 , the employment test under section 87-25 , the business premises test under section 87-30 or more than one of those tests; and

(b) the individual's *personal services income could reasonably be expected to be, or was, from the individual conducting activities that met one or more of those tests.

87-60(4)    

For the purposes of paragraph (3B)(a) but without limiting the scope of that paragraph, unusual circumstances include providing services to an insufficient number of entities to meet the unrelated clients test under section 87-20 if:

(a) the individual starts a *business during the income year, and can reasonably be expected to meet the test in subsequent income years; or

(b) the individual provides services to only one entity during the income year, but met the test in one or more preceding income years and can reasonably be expected to meet the test in subsequent income years.

Third alternative - unrelated clients test was met but 80% or more of income from same source because of unusual circumstances

87-60(5)    

The conditions in this subsection are that:

(a) the individual could reasonably be expected to meet, or met, the unrelated clients test under section 87-20 ; and

(b) because of unusual circumstances applying to the individual in the income year, 80% or more of the individual's *personal services income (not including income mentioned in subsection 87-15(4) ) could reasonably have been expected to be, or would have been, income from the same entity (or one entity and its *associates); and

(c) the individual's personal services income could reasonably be expected to be, or was, from the individual conducting activities that met the unrelated clients test under section 87-20 .

Fourth alternative - unrelated clients test not met because of unusual circumstances

87-60(6)    

The conditions in this subsection are that:

(a) but for unusual circumstances applying to the individual in that year, the individual could reasonably have been expected to meet, or would have met, the unrelated clients test under section 87-20 ; and

(b) if 80% or more of the individual's *personal services income (not including income mentioned in subsection 87-15(4) ) could reasonably have been expected to be, or would have been, income from the same entity (or one entity and its *associates) - that is the case only because of unusual circumstances applying to the individual in the income year; and

(c) the individual's personal services income could reasonably be expected to be, or was, from the individual conducting activities that met the unrelated clients test under section 87-20 .

87-60(7)    
(Repealed by No 169 of 2001)