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  • Sole trader

    As a sole trader, you won't be able to claim certain deductions against your PSI and you will need to meet certain tax return obligations when the PSI rules apply.

    Deductions

    The PSI rules that limit the deductions you can claim only apply to income that is PSI. If you earn other income, you can still claim deductions for expenses in earning that other income according to the normal tax rules. If you receive both PSI and other income, then you may need to allocate your expenses between each category of income.

    You cannot claim the following deductions against your PSI:

    • rent, mortgage interest, rates or land tax for your home (or your associate's home)
    • payments to your spouse, or other associate, for support work such as secretarial duties
    • expenses that you would generally not be able to deduct as an employee.

    See also:

    Tax return obligations

    When the PSI rules apply, you will need to complete the Personal services income question in your individual tax return.

    See also:

    Last modified: 30 Mar 2017QC 46039