Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 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.

  (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.

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