Income Tax Assessment Act 1997

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.

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.

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 final superannuation guarantee shortfalls for the associate and any *QE days in the income year.

To work out the amount you would have to contribute under subsection (3), assume under the Superannuation Guarantee (Administration) Act 1992 that your payments of qualifying earnings (within the meaning of that Act) to the associate do not include any amounts that section 85‑10 or 85‑20 of this Act would prevent you from deducting.

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