Personal services income

Income that is not PSI

Certain types of income are not personal services income (PSI). This includes income that is mainly generated from:

supplying or selling goods
an income-producing asset
a business structure.

PSI flowchart. Highlighting the first step. Is the income PSI? If No, the PSI rules do not apply.

What is PSI?

4 mins

What is PSI?	0%

Is the income PSI?

5 mins

Working out if income is PSI	0%
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Activity	0%
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Income that is not PSI

9 mins

Income that is not PSI	0%
Salary and wage earners	0%
Supplying or selling goods	0%
Supplying or using an income-producing asset	0%
Activity	0%
Activity	0%
Income from a business structure	0%
Activity	0%
Activity	0%

Whose PSI is it?

7 mins

Whose PSI is it?	0%
Activity	0%
Activity	0%
Activity	0%
Activity	0%

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

2 mins

How to self - assess as a PSB	0%

The 80% rule

5 mins

The 80% rule	0%
Work out the amount of PSI that comes from each client and their associates	0%
Activity	0%
Work out if the special rule for agents apply	0%
Activity	0%

Results test

8 mins

Results test	0%
Paid to produce a specific result	0%
Provide equipment or tools	0%
Fix mistakes at your own cost	0%
Activity	0%
Activity	0%

Unrelated clients test

5 mins

Unrelated clients test	0%
Activity	0%
Activity	0%

Employment test

5 mins

Employment test	0%
Activity	0%
Activity	0%
Contracts over multiple income years	0%

Business premises test

7 mins

Business premises test	0%
Activity	0%
Activity	0%
Activity	0%
Activity	0%
Activity	0%

Obtaining work through an agency

5 mins

Obtaining work through an agency	0%
Obtaining work through an agency: results test	0%
Obtaining work through an agency: 80% rule	0%
Obtaining work through an agency: unrelated clients test	0%

Apply for a personal services business determination (PSBD)

3 mins

What is a PSBD?	0%
Unusual circumstances	0%
Apply for a PSBD	0%

What to do when the PSI rules apply

2 mins

What to do when the PSI rules apply	0%

What to do when the PSI rules apply: claiming deductions

11 mins

Claiming deductions when receiving PSI	0%
Deductions that can’t be claimed against PSI	0%
Rent, mortgage interest, rates and land tax	0%
Payments to associates for non-principal work	0%
Activity	0%
Super contributions for associates for non-principal work	0%
Activity	0%
Activity	0%
Non - deductible expenses	0%
Allowable deductions when receiving PSI	0%
Car expenses	0%
Activity	0%

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

8 mins

How to attribute PSI	0%
Attributing PSI where one individual generates PSI	0%
Attributing PSI where 2 individuals generate separate PSI	0%
Activity	0%

What to do when the PSI rules apply: PAYG

18 mins

Additional PAYG withholding obligations	0%
Work out additional PAYG withholding obligations	0%
Method 1: 70% of Gross PSI received	0%
Method 2: Percentage from previous income year	0%
Method 3: Legislative method	0%
Reporting PAYG withholding for PSI	0%
Activity	0%
Partnerships and PAYG instalments	0%
Correcting mistakes	0%

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

4 mins

Completing your tax return	0%
Completing reconciliation lab	0%

What to do if the PSI rules don’t apply

3 mins

When the PSI rules don’t apply	0%
General anti-avoidance rules (GAAR) and PSI	0%

Record keeping for PSI

1 mins

Record keeping for PSI	0%
Make it easier to identify PSI in your business records	0%

Help for PSI

1 mins

Help for PSI	0%

Case study: instructions

1 mins

Case study instructions	0%

Case studies: sole trader

11 mins

Case study 1: sole trader	0%
Case study 2: sole trader	0%

Case studies: partnership

12 mins

Case study 1: partnership	0%
Case study 2: partnership	0%

Case studies: company

12 mins

Case study 1: company	0%
Case study 2: company	0%

Case studies: trust

12 mins

Case study 1: trust	0%
Case study 2: trust	0%

Related courses

1 mins

Related courses	0%

Course Feedback

Course Feedback	0%