{"id":"C2004A00681","name":"New Business Tax System (Alienated Personal Services Income) Tax Imposition Act (No. 1) 2000","slug":"new-business-tax-system-alienated-personal-services-income-tax-imposition-act-no-1-2000","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"87 of 2000","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":6052,"registerId":"commonwealth-C2004A00681-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"New Business Tax System (Alienated Personal Services Income) Tax Imposition Act (No. 1) 2000","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\n \n\n \n\n \n\n \n\nNew Business Tax System (Alienated Personal Services Income) Tax Imposition Act (No. 1) 2000\n\n \n\nNo. 87, 2000\n\n![](image.001.png)\n\n \n\n \n\n \n\n \n\nNew Business Tax System (Alienated Personal Services Income) Tax Imposition Act (No. 1) 2000\n\n \n\nNo. 87, 2000\n\n \n\n \n\n \n\n \n\nAn Act to implement the New Business Tax System by imposing tax on certain alienated personal services income, and for related purposes\n\n \n\n \n\n \n\nContents\n\n1 Short title...................................\n\n2 Commencement...............................\n\n3 Imposition..................................\n\n \n\n![](image.001.png)\n\nNew Business Tax System (Alienated Personal Services Income) Tax Imposition Act (No. 1) 2000\n\nNo. 87, 2000\n\n \n\n \n\n \n\nAn Act to implement the New Business Tax System by imposing tax on certain alienated personal services income, and for related purposes\n\n[Assented to 30 June 2000]\n\nThe Parliament of Australia enacts:\n\n1  Short title\n\n  This Act may be cited as the New Business Tax System (Alienated Personal Services Income) Tax Imposition Act (No.1) 2000.\n\n2  Commencement\n\n  This Act commences on the day on which it receives the Royal Assent.\n\n3  Imposition\n\n  Tax is imposed by this Act to the extent that income tax payable by a person is increased as a result of an amount being included in the person’s assessable income under section 86‑15 of the Income Tax Assessment Act 1997.\n\n \n\n \n\n[Minister’s second reading speech made in—\n\nHouse of Representatives on 13 April 2000\n\nSenate on 5 June 2000]\n\n \n\n \n\n \n\n \n\n(65/00)\n\n\n \n","sortOrder":0}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"This Act has not changed in scope from its original intent. It was always and only designed to serve as a constitutional vehicle to formally impose tax on alienated personal services income — a narrow, specific purpose. With only three sections and no amendments of substance, it remains exactly what it was drafted to be: a short imposition Act fulfilling a constitutional requirement."},"complexity_factors":["Only 3 sections — short title, commencement, and imposition","No defined terms within the Act itself — relies entirely on external legislation for definitions","Single operative provision (imposition clause) with no conditional logic or exceptions","Complexity exists in understanding the constitutional reason for its existence, not in the text itself","Cross-references to companion Act (No. 2) and the broader personal services income regime are implicit rather than explicit in the text"],"plain_english_summary":"This short, technical Act simply gives legal authority to impose tax on \"alienated personal services income\" — income an individual shifts through a company, trust or partnership to reduce personal tax. It works with a companion Act for constitutional reasons and applies where the companion doesn't. It affects individuals and entities used to shelter one person’s labour income and ensures the ATO can lawfully collect tax on such arrangements."},"kimi_summary":{"content_quality":"ok","complexity_score":1,"scope_assessment":{"changed":false,"description":"This Act has remained tightly focused on its original purpose since enactment. It was always intended as a pure imposition mechanism — a constitutional 'hook' to make the substantive rules in the Assessment Act enforceable. There is no evidence of scope creep; the Act contains no substantive policy content that could expand beyond its original technical function."},"complexity_factors":["Only 3 operative sections (Short title, Commencement, Imposition)","No defined terms within the Act itself — relies entirely on external references","Single substantive provision (section 3) consisting of one sentence","No conditional logic, exceptions, or nested provisions","No cross-references except to one external section (86-15 of ITAA 1997)","Total length under 200 words of substantive text"],"plain_english_summary":"This is a very short law that does one specific job: it officially **imposes** (creates the legal authority for) a special tax on what's called 'alienated personal services income'.\n\n**What does that mean in plain terms?**\n\nSometimes people try to reduce their tax bill by rearranging how they get paid. Instead of working as an employee and paying tax at normal rates, they might set up a company, trust, or partnership to receive their wages, then pay themselves from that entity at lower tax rates or with more deductions. This is called 'alienating' (redirecting) personal services income.\n\n**What this Act does:**\n\n- It gives the government the legal power to charge extra income tax when someone uses this arrangement\n- Specifically, it hits the extra tax that becomes payable when section 86-15 of the Income Tax Assessment Act 1997 adds an amount to someone's taxable income\n- It works together with a companion Act (the 'Assessment Act') that defines who is caught, what income counts, and how to calculate the tax\n\n**Who does it affect?**\n\n- Individuals who provide personal services (like consulting, medical, legal, IT, or other skilled work)\n- Companies, trusts, or partnerships they've set up to receive that income instead\n- The ATO, which collects the tax\n\n**Why it matters:**\n\nWithout this Act, the tax rules in the Assessment Act would have no 'teeth' — there would be no legal basis to actually collect the money. This is the 'imposition' mechanism that makes the broader anti-avoidance rules enforceable. It stops people from unfairly splitting income or accessing corporate tax rates for what is essentially their own salary."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"Based solely on the Act's text, it implements an express tax imposition tied to amounts included under s86‑15 of the Income Tax Assessment Act 1997 (s 3). The Act itself does not expand or narrow that trigger or add new categories beyond the stated cross‑reference, so no change of scope from its stated purpose can be inferred from this instrument alone."},"complexity_factors":["Very short, three-section Act with a single operative rule (ss 1–3).","Operative effect depends on a cross-reference to s86‑15 of the Income Tax Assessment Act 1997 (external dependency increases interpretive complexity).","Calculation limited to the extent that a person's income tax is increased as a result of inclusion—requires interplay with income tax calculation rules in the ITAA 1997.","No procedural, administrative, exemption or enforcement details included—those matters rest with the broader tax law and agencies.","Commencement on royal assent (s 2) removes phased implementation complexity but creates immediate effect timing considerations."],"plain_english_summary":"**What it does:** This short Act makes explicit that tax is imposed where a person's income tax increases because an amount is included in their assessable income under section 86‑15 of the Income Tax Assessment Act 1997. It affects people whose personal services income is 'alienated' and treated as their assessable income under that cross‑reference. It matters because it converts the tax consequence of that inclusion into an express statutory imposition, clarifying who pays and when the increased tax arises."}},"importantCases":[],"_links":{"self":"/api/acts/new-business-tax-system-alienated-personal-services-income-tax-imposition-act-no-1-2000","history":"/api/acts/new-business-tax-system-alienated-personal-services-income-tax-imposition-act-no-1-2000/history","analysis":"/api/acts/new-business-tax-system-alienated-personal-services-income-tax-imposition-act-no-1-2000/analysis","conflicts":"/api/acts/new-business-tax-system-alienated-personal-services-income-tax-imposition-act-no-1-2000/conflicts","importantCases":"/api/acts/new-business-tax-system-alienated-personal-services-income-tax-imposition-act-no-1-2000/important-cases","documents":"/api/acts/new-business-tax-system-alienated-personal-services-income-tax-imposition-act-no-1-2000/documents"}}