Personal Service Income (PSI) affairs in order?
It is not uncommon for professionals and tradies who provide services to setup a separate entity to run their business, be it a trust, partnership or incorporated company.
The PSI Rules
(PSI) broadly defines income which is “a reward for an individual’s personal efforts or skills”.
The ATO’s PSI Decision ToolTo answer the questions in the PSI decision tool you may need:
- details of contracts or written agreements with your clients during the income year
- invoices from work performed during the income year
- records of payments to any employees or subcontractors
- your TFN (if you wish to submit your result to the ATO).
The tool should take 5 to 20 minutes to complete.