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Completing your tax return when receiving PSI

If you earn personal services income (PSI), you need to complete specific questions in your tax return and schedules.

Last updated 22 November 2022

How to complete your tax return and schedules if you've earned personal services income (PSI).

Overview

If you are earning PSI, then you need to report this as PSI in your tax return even if you are a personal services business (PSB) and the PSI rules don't apply to you.

How you report your PSI depends on whether the PSI rules apply to your income, and whether you operate as a sole trader, company, partnership or trust.

You need to complete reconciliation labels in a company, partnership or trust tax return if the PSI rules apply to your income.

Individual tax return (sole traders)

If you're operating as a sole trader, you report any PSI you've received in your individual tax return. You can do this online through myTax or via a registered tax agent.

If you're using myTax to lodge your tax return, you need to complete the PSI section.

You may also need to complete the Business payment summaries section.

If you're required to complete the Business and professional items schedule, you cannot lodge a paper tax return.

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 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 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.

Completing reconciliation labels

If you're a company, partnership or trust, and the PSI rules apply to your income, you also need to complete reconciliation labels in your business tax return.

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