Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 87.15

  (1)   An individual or * personal services entity conducts a personal services business if:

  (a)   for an individual--a * personal services business determination is in force relating to the individual's * personal services income; or

  (b)   for a personal services entity--a personal services business determination is in force relating to an individual whose personal services income is included in the entity's * ordinary income or * statutory income; or

  (c)   in any case--the individual or entity meets at least one of the 4 * personal services business tests in the income year for which the question whether the individual or entity is conducting a personal services business is in issue.

Note 1:   For personal services business determinations, see Subdivision   87 - B.

Note 2:   Under subsection   (3), the personal services business tests, apart from the results test under section   87 - 18, do not apply if 80% or more of your personal services income is from one source (but they can still be used in deciding whether to make a personal services business determination).

  (2)   The 4 personal services business tests are:

  (a)   the results test under section   87 - 18; and

  (b)   the unrelated clients test under section   87 - 20; and

  (c)   the employment test under section   87 - 25; and

  (d)   the business premises test under section   87 - 30.

  (3)   However, if 80% or more of an individual's * personal services income (not including income referred to in subsection   (4)) during an income year is income from the same entity (or one entity and its * associates), and:

  (a)   the individual's personal services income is not included in a * personal services entity's * ordinary income or * statutory income during an income year, and the individual does not meet the results test under section   87 - 18 in that income year; or

  (b)   the individual's personal services income is included in a personal services entity's ordinary income or statutory income during an income year, and the entity does not, in relation to the individual, meet the results test under section   87 - 18 in that income year;

the individual's personal services income is not taken to be from conducting a * personal services business unless:

  (c)   when the personal services income is gained or produced, a * personal services business determination is in force relating to the individual's personal services income; and

  (d)   if the determination was made on the application of a personal services entity--the individual's personal services income is income from the entity conducting the personal services business.

Note:   Sections   87 - 35 and 87 - 40 affect the operation of subsection   (3) in relation to Australian government agencies and certain agents.

  (4)   Subsection   (3) 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.