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: Australian Regulatory Compliance ReviewPersonal services income update
Many consultants and contractors operate through a company, partnership or trust. If the majority (more than 50%) of your income is for the skills, knowledge, expertise or efforts of the person who performed the services, this income will be classified as Personal Services Income. If more than 80% of the Personal Services Income comes from the one customer then special tax rules apply.
The ATO has issued an updated explanation of the personal services income rules.
Full post as published by Australian Regulatory Compliance Review on October 19, 2008 (boomark / email).
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