Miscellaneous technical amendments

The income threshold in the personal services attribution rule has been raised to $70,000 to reflect the tax rate structure enacted as part of the 2008 tax cuts.

Threshold for attribution of personal services income

Section GB 27(2)(c) of the Income Tax Act 2007

Section GB 27 ensures that income from personal services is attributed to the person who performs the services, rather than an interposed entity, in certain circumstances. Previously, the personal services attribution rule applied if the net income of the person performing the services was more than $60,000.

The $60,000 income threshold in the personal services attribution rule has been raised to $70,000. This reflects the new personal tax rate structure enacted as part of the tax cuts in 2008.

The amendment applies from 1 April 2008.