The results test is one of 4 personal services business (PSB) tests that taxpayers earning personal services income (PSI) can use to self-assess as a PSB.

If you pass the results test, your business is a PSB for that income year. The PSI rules don't apply to the income you earn from this PSB.

To pass the results test, you need to meet all 3 of the following conditions for at least 75% of your PSI you earnt:

• You must be paid to produce a specific result.
• You’re required to provide equipment or tools (if required).
• You’re required to fix mistakes at your own cost.

You may find that some of your business contracts meet the 3 conditions of the test and some don't.

If you're a company, partnership or trust and you have more than one individual generating PSI, you will need to work out whether the results test is passed for each individual. It is possible to have different outcomes for different individuals.