Search

New provision

NEW provisions to catch personal services income introduced this year have been largely ignored as small business has struggled to deal with the GST.

Any small business that is part of the Prescribed Payments System will not have to deal with alienation of personal services income until July 1 2002.

Any business earning more than 80 per cent of its revenue from the one source will be deemed to be earning personal services income and taxed as an employee. A contractor earning more than $60,000 a year would be taxed at 47 per cent rather than 34 per cent company tax rate.

Australian Tax Office assistant commissioner Tony Sullivan said a business employing several people, or with several clients or with business premises separate from the business principal’s home, would not be deemed to be earning personal services income.

More information is available from the

ATO at www.ato.gov.au or businesses could arrange for a tax officer to visit them by phoning 1300 137 619.

Add your comment

BNIQ sponsored byECU School of Business and Law

Students

6th-Australian Institute of Management WA20,000
7th-Murdoch University16,584
8th-South Regional TAFE10,549
9th-Central Regional TAFE10,000
10th-The University of Notre Dame Australia6,708
48 tertiary education & training providers ranked by total number of students in WA

Number of Employees

BNiQ Disclaimer