Taxation Administration Act 1953

A *personal services entity is a personal services payment remitter for a *PAYG payment period if, in the income year preceding that period:

the entity’s *ordinary income or *statutory income included a person’s *personal services income; and

the entity was not conducting a *personal services business.

A *personal services entity is a personal services payment remitter for a *PAYG payment period if:

the entity’s *ordinary income or *statutory income did not include an individual’s *personal services income in any income year preceding that period; and

it is reasonable to expect that, in the income year during which the period occurs, the entity’s income will include a person’s *personal services income that the entity will not have received in the course of conducting a *personal services business.

It is not reasonable to expect that the *personal services entity will receive a person’s *personal services income in the course of conducting a *personal services business if it is reasonable to expect that:

the entity will receive at least 80% of that income from the same entity (or one entity and its *associates); and

the entity will not meet the results test under section 87‑18 of the Income Tax Assessment Act 1997.

However, a *personal services entity is not a personal services payment remitter for a *PAYG payment period if, during that period or an earlier PAYG payment period in the same income year, a *personal services business determination relating to the entity takes effect.