Commonwealth of Australia Consolidated Acts Commonwealth of Australia Consolidated ActsObject of this section
(1) The object of this section is to modify the operation of this Division for * agents who bear entrepreneurial risk in the way they provide services.
Agent rules do not apply
(1A) The rules in section 960-105 (Certain entities treated as agents) do not apply to this section.
Agents covered by this section
(2) Subsection 87- 15(3) and section 87- 20 apply, in the manner specified in this section, to an individual or * personal services entity if:
(a) the individual or personal services entity is an * agent of another entity (the principal ) but not the principal's employee; and
(b) the agent receives income from the principal that is for services that the agent provides to other entities ( customers ) on the principal's behalf; and
(c) at least 75% of that income is commissions, or fees, based on the agent's performance in providing services to the customers on the principal's behalf; and
(d) the agent actively seeks other entities to whom the agent could provide services on the principal's behalf; and
(e) the agent does not provide any services to the customers, on the principal's behalf, using premises:
(i) that the principal or an * associate of the principal owns; or
(ii) in which the principal or an associate of the principal has a leasehold interest;
unless the agent uses the premises under an arrangement entered into at arm's length.
Whether personal services income is from one source
(3) If the * agent is an individual, in applying subsection 87- 15(3) to the * personal services income of the agent during an income year, any part of the agent's personal services income from the principal that:
(a) the agent gains or produces during the income year; and
(b) is for services that the agent provided to a customer on the principal's behalf in the income year or an earlier income year;
is treated as if it were personal services income from the customer, and not personal services income from the principal.
(4) If the * agent is a * personal services entity, in applying subsection 87- 15(3) to an individual's * personal services income that is included in the entity's * ordinary income or * statutory income during an income year, any part of the individual's personal services income from the principal that:
(a) the agent gains or produces during the income year; and
(b) is for services that the individual or the agent provided to a customer on the principal's behalf in the income year or an earlier income year;
is treated as if it were personal services income from the customer, and not personal services income from the principal.
The unrelated clients test for a personal services business
(5) In determining whether, during an income year, the * agent meets the unrelated clients test under section 87- 20, any services the agent provided in the income year or an earlier income year:
(a) for which the agent gains or produces, during the income year, personal services income from the principal; and
(b) that were provided to a customer on the principal's behalf;
are treated for the purposes of paragraph 87-20(1)(a) as if the agent, and not the principal, provided them to the customer.
Table of sections
87-60 Personal services business determinations for individuals
87-65 Personal services business determinations for personal services entities
87-70 Applying etc. for personal services business determinations
87-75 When personal services business determinations have effect
87-80 Revoking personal services business determinations
87-85 Review of decisions