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INCOME TAX ASSESSMENT ACT 1997 - SECT 85.25 Deductions for superannuation for associates

INCOME TAX ASSESSMENT ACT 1997 - SECT 85.25

Deductions for superannuation for associates

  (1)   You cannot deduct under this Act a contribution you make to a fund or an * RSA to provide for * superannuation benefits payable for your * associate, to the extent that the associate's work for you relates to gaining or producing your * personal services income.

  (2)   Subsection   (1) does not stop you deducting a contribution to the extent that your * associate's performance of work forms part of the principal work for which you gain or produce your * personal services income.

  (3)   However, if subsection   (2) applies, your deduction cannot exceed the amount you would have to contribute, for the benefit of the * associate, to a * complying superannuation fund or an * RSA in order to ensure that you did not have any * individual superannuation guarantee shortfalls in respect of the associate for any of the * quarters in the income year.

  (4)   To work out the amount you would have to contribute for the purposes of subsection   (3), the * associate's salary or wages, for the purposes of the Superannuation Guarantee (Administration) Act 1992 , are taken to be the amount that neither section   85 - 10 nor 85 - 20 prevent you deducting for salary or wages you paid to the associate.

Note:   See paragraph   85 - 10(2)(e) for deductions relating to employment of associates.

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