If you’re paid mostly for your personal effort, skills or expertise, you might be receiving personal services income. Income is classified as PSI when more than 50% of the income you’ve received is a reward for your personal efforts and skills, rather than being generated by using assets, selling goods or a business structure.

If more than one individual in your business is generating PSI, you need to keep records relating to each individual. 

How long you need to keep PSI records 

You need to keep your PSI records for 5 years, starting from when you prepared or obtained the records, or when you completed the transactions the records relate to, whichever is later. 

You should keep records long enough to cover the period of review (also known as the amendment period) for an assessment that uses information from the record.