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 | ||||||||||||||||||||
Course Feedback |
|||||||||||||||||||||