Income can come from several sources, including from:

• the skills, knowledge or expertise of an individual
• the supply or sale of goods
• the supply or use of income-producing assets, or
• a business structure

Income is classified as PSI when more than 50% of the income you've received from a contract is a reward for your personal efforts or skills, rather than being generated by the use of assets, the sale of goods, or from a business structure.  

When working out if your income is PSI, you need to look at the income you have received from each contract separately. The terms and conditions of the contract, as well as invoices and written agreements that detail the work arrangement, are important in working out if the income is PSI. They can help you to work out what percentage of income from each contract is for:

• your labour, skills, knowledge, expertise or efforts, and
• anything else, such as the materials supplied or tools and equipment used.

If 50% or less of the income received from a contract was for your personal efforts or skills, then none of the income from that contract is PSI.