Step 2: Results test
If you've worked out that your income includes PSI, your next step is to work through the results test. This test is about the nature of your agreement to perform the work, including the basis on which you are paid.
To pass the results test, you need to meet the following three conditions:
If you pass the test, your business is a personal services business (PSB) and the PSI rules don't apply.
You may find that some of your business contracts meet the three conditions of the test and some don't. To pass the results test, you need to meet all three conditions for at least 75% of the PSI for the income year.
If more than 25% of your PSI came from an agency (such as a labour hire firm), you will not pass the results test.
If you are receiving PSI, your next step is working out whether you pass the results test. To pass the results test, you need to meet three conditions. If you pass the test, your business is a personal services business and the PSI rules don't apply.