Personal Services Income

??????????????????????????????????????????????????????????????????????Personal Services Income is known by its acronym “PSI” and refers to income produced mainly from your personal skills or efforts as an individual.

PSI can be generated in almost any industry, but it is common among financial professionals, information technology consultants, engineers, construction workers and medical practitioners.

Income is classified as PSI when more than 50% of the amount you received for a contract was for your labour, skills or expertise.

You first need to work out if your income is considered PSI, and then you need to work out of the special PSI rules apply to you.

Don’t be afraid, if you have PSI and the rules apply, it just means that there are fewer deductions you can claim against this income, and you will need to report this income as your own individual income.

There’s a flowchart created by the ATO to help you work through this process, as always I’m on hand to assist you need – just Contact me!



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