PSI – completing your tax return
This information is relevant for anyone completing a tax return when personal services income (PSI) has been earned.
The questions you answer and items you complete in your tax return depend on whether the PSI rules apply to your income.
Find out about:
Income tax returns
How you report your PSI will depend on whether you operate as a sole trader, company, partnership or trust.
From 2013, if you're required to complete the Business and professional items schedule you cannot lodge a paper tax return. You must lodge your tax return online through myTax or via a registered tax agent.
Companies, partnerships and trusts
From the 2013 income year, the Personal services income schedule (NAT 3421) is no longer required. The relevant questions are now included in the PSI questions of the company, partnership and trust tax returns.
Find out about:
Individual tax return (sole traders)
If you're operating as a sole trader you can report any PSI you've received in your individual tax return. You can do this online through myTax or via a registered tax agent.
When lodging your own tax, you will need to complete the Personal services income section in myTax.
You may also need to complete the Business payment summaries section.
Company tax return
If you operate through a company, you need to report any PSI the company received in your Company tax return.
When lodging your company tax return, you will need to complete:
- item 6 Calculation of total profit or loss and include all personal services income and related expenses
- item 14 Personal services income (if you answer no at N for this item, you are finished with this question).
Partnership or trust tax return
If you operate through a partnership or trust, you need to report any PSI received by the relevant entity on either a Partnership tax return or a Trust tax return.
When lodging your partnership or trust tax return, you will need to complete:
- Item 5 Business income and expenses and include all personal services income and related expenses
- Item 30 Personal services income (if you answer no at N for this item, you are finished with this question).
These items are the same for both partnership and trust tax returns.