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  • Seek further advice

    If you're still unsure of your circumstances you may need to seek professional advice from us or a registered tax professional.

    You're responsible for the income you report and deductions you claim in your tax return, even if you use a registered tax professional to prepare it. Penalties may apply if you don't report your income correctly or if you claim deductions you are not entitled to.

    You can also have a look at our Draft Taxation Ruling 2021/D2 – Income tax: personal services income and personal services businesses, which will replace Taxation Rulings TR2001/7 and TR 2001/8.

    The draft ruling explains in further detail:

    • the meaning of PSI
    • what is not PSI
    • determining whose PSI it is
    • who is not subject to the PSI rules
    • effect of the PSI rules
    • personal services business (PSB)
    • the PSB tests
    • PSB determination
    • application of Part IVA of the Income Tax Assessment Act 1936.

    It also provides examples to illustrate the application of some of these principles:

    • what is (and is not) PSI
    • determining who is earning PSI
    • PSBs – results test
    • PSBs – unrelated clients' test
    • PSBs – employment test
    • PSBs – business premises test.

    See also:

    Last modified: 16 Aug 2021QC 46047