Two individuals operating through one company

Sometimes there is more than one individual in the business generating PSI. The income earned by each individual needs to be considered when deciding if the PSI rules apply.

In most cases, the PSI rules are applied to the income each individual earns and cannot be looked at as PSI earned by the business.


Mick and Robin are engineers who operate through a company, M&R Engineering Pty Ltd, to provide their services. M&R Engineering Pty Ltd contracts with Agency A.

Mick and Robin are each required to perform work for and at the direction of the agency's clients. Agency A provides:

  • Mick's services to Client A
  • Robin's services to Client B.

Both engineers work independently of each other.

The tests must be applied separately to the PSI of each individual contractor (Mick and Robin) whose income is received by M&R Engineering Pty Ltd.

End of example
    Last modified: 14 Sep 2016QC 46087