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Other Tax Matters

Business

Personal Services Income (PSI)

Wednesday, 23 May 2012

Personal Services Income (PSI)

Government unhappy with current PSI Rules

PRESS RELEASE 16 DECEMBER 2009

Overview

		Step 1: Personal services income
		Do you receive income that is mainly a reward for personal efforts or skills?					no →	↓
		↓ yes						↓
		Step 2: Results test						↓
		Do you meet the results tests?					yes →	↓
		↓ no						↓
		Step 3: The 80% Rule						↓
	yes ←	Does 80% or more of your personal services income come from one client?						↓
↓	yes ←							↓
↓		↓ no						↓
↓ ↓		Step 4: The other tests						↓
↓ ↓		Do you meet one or more of the following tests? > Unrelated clients > Employment, or > Business premises.					yes →	↓ ↓
↓		↓ no		↓ not sure			↓
New PSI tax legislation from 1 July 2000 does apply to you and this may effect your tax obligations unless you get a determination from the ATO.				If you are not sure or if unusual circumstances prevent you from meeting one or more of the tests or the 80% rule you can apply to the ATO for a determination that the changes to the tax law do not apply to you.	not sure	New PSI tax legislation from 1 July 2000 does not apply to you and will not effect your tax obligations. You do not need to contact the ATO.
			→		←

Refer to the links below for more details.

The Best Links to more information on this topic

80% RULE - WHAT IS IT?

ALIENATION OF PERSONAL SERVICES INCOME (CONTRACTORS & CONSULTANTS)

ANTI AVOIDANCE RULES THAT APPLY TO A PERSONAL SERVICES BUSINESS (OCT 2008)

AVOIDING THE EIGHT COMMON MISTAKES

BUSINESS PREMISES TEST - WHAT IS IT?

BUSINESS PREMISES TEST FAILED - DIXON CONSULTING CASE

EMPLOYMENT TEST - WHAT IS IT?

PSI DEFINITION

PSI ESSENTIALS

PSI FOR COMPANIES, PARTNERSHIPS & TRUSTS

PSI FOR CONTRACTORS & CONSULTANTS

PSI FOR SOLE TRADERS

RESULTS TEST - WHAT IS IT?

RESULTS TEST FAILED - BRMJCQ - IT PROFESSIONAL (APRIL 2010)

RESULTS TEST FAILED - IRG TECHNICAL & OWEN TEST CASES - DECISION IMPACT STATEMENT

RESULTS TEST FAILED - IT CONSULTANT (PARK CASE - 2011)

RESULTS TEST FAILED - SKIBA CASE (ENGINEER)

TD 2002/24 - PARTNERSHIPS DESIGNED TO CIRCUMVENT THE PSI PROVISONS

TR 2001/7 - THE MEANING OF PERSONAL SERVICES INCOME

TR 2001/8 - WHAT IS A PERSONAL SERVICES BUSINESS?

UINREATED CLIENTS TEST - IS WORD OF MOUTH SUFFICIENT?

UNRELATED CLIENTS TEST - IT PAYS TO ADVERTISE (COOPER GRACE WARD)

UNRELATED CLIENTS TEST - WHAT IS IT?

UNRELATED CLIENTS TEST (YALOS ENGINEERING CASE)

IT 2639 - PERSONAL SERVICES INCOME (1991)

IT 2503 - INCORPORATION OF MEDICAL & OTHER PROFESSIONAL PRACTICES (1988)

IT 2330 - INCOME SPLITTING (1986 - THE DOCTORS' CASES)

IT 2121 - FAMILY COMPANIES & TRUSTS (1984 - AFTER TUPICOFF's CASE)

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This page was last edited on 21 January 2012

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