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.
Information your records need to show |
Examples of types of records |
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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.
Record keeping
Steps | Progress | |||||||||||||
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Record keeping overview |
10 mins | |||||||||||||
Tasks and tips |
6 mins | |||||||||||||
Starting your business records |
2 mins | |||||||||||||
Digital record keeping |
5 mins | |||||||||||||
Manual or paper record keeping |
2 mins | |||||||||||||
Banking records |
2 mins | |||||||||||||
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Income records |
3 mins | |||||||||||||
Accounting for private use of assets |
9 mins | |||||||||||||
Motor vehicle deductions records |
2 mins | |||||||||||||
Home-based business deductions records |
1 mins | |||||||||||||
Other deductions records |
1 mins | |||||||||||||
Stock and asset records |
5 mins | |||||||||||||
GST records |
1 mins | |||||||||||||
Employee records |
7 mins | |||||||||||||
Car fringe benefits records |
1 mins | |||||||||||||
Expense payment FBT records |
2 mins | |||||||||||||
Contractor records |
2 mins | |||||||||||||
Sharing economy records |
1 mins | |||||||||||||
Cryptocurrency records |
1 mins | |||||||||||||
Records for other taxes |
5 mins | |||||||||||||
Sole trader structure records |
4 mins | |||||||||||||
Partnership structure records |
3 mins | |||||||||||||
Company structure records |
3 mins | |||||||||||||
Trust structure records |
1 mins | |||||||||||||
Changing your business structure records |
1 mins | |||||||||||||
Selling or closing your business records |
2 mins | |||||||||||||
Related courses |
1 mins | |||||||||||||
Course Feedback |
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