Work out if the special rule for agents apply

The PSI rules are modified for agents who act or represent others and bear an entrepreneurial risk in the way they provide their services. The special rule allows agents to treat the clients of a principal as their own clients for the purposes of passing the 80% rule.

If you’re acting or representing others as an agent who bears an entrepreneurial risk, you can treat the clients of a principal as your own clients if you meet all of the following:

  • you're an agent of the principal, but not the principal's employee
  • you receive income from the principal for services that you provide to customers on the principal's behalf
  • you receive at least 75% of that income from the principal as commissions or results-based payments (as opposed to a retainer or salary-like payments)
  • you actively seek customers for the principal
  • you do not provide services to clients from a premises owned or leased by the principal (or their associate) unless you have an arm's-length arrangement to use the premises.

You can use the principal's premises to negotiate, organise or administer arrangements solely between yourself and the principal, such as:

  • negotiating agency agreements
  • receiving training
  • attending strategy meetings.

Personal services income

Steps Progress

What is PSI?

4 mins

Is the income PSI?

5 mins

Income that is not PSI

9 mins

Whose PSI is it?

7 mins

Working out if the PSI rules apply: self-assess as a personal service business (PSB)

2 mins

The 80% rule

5 mins

Results test

8 mins

Unrelated clients test

5 mins

Employment test

5 mins

Business premises test

7 mins

Obtaining work through an agency

5 mins

Apply for a personal services business determination (PSBD)

3 mins

What to do when the PSI rules apply

2 mins

What to do when the PSI rules apply: claiming deductions

11 mins

What to do when the PSI rules apply: how to attribute PSI

8 mins

What to do when the PSI rules apply: PAYG

18 mins

What to do when the PSI rules apply: completing your tax return

4 mins

What to do if the PSI rules don’t apply

3 mins

Record keeping for PSI

1 mins

Help for PSI

1 mins

Case study: instructions

1 mins

Case studies: sole trader

11 mins

Case studies: partnership

12 mins

Case studies: company

12 mins

Case studies: trust

12 mins

Related courses

1 mins

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