Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 12   Personal service business determinations

Part 2   Amendments applying from the income year after the income year in which this Act receives the Royal Assent

Income Tax Assessment Act 1997

15   At the end of section 87-65

Add:

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

(6) The conditions in this subsection are that:

(a) but for unusual circumstances applying to the entity in that year, the entity 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)) included in the entity's *ordinary income or *statutory income 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 entity in the income year; and

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