Show download pdf controls
  • Client associates

    A client's associates can include the client's:

    • relatives
    • partner in a business partnership and their spouse or children
    • trustee of a trust that they (or an associate) benefit from
    • company which is under their (or their associate's) control
    • beneficiary or their associates, if the client is a trustee, or
    • controlling entities, if the client is a company.

    If PSI is received from one client and their associate – for example, a company and a subsidiary of that company – the PSI needs to be treated as if it comes from one client (that is, one source).


    Binglei is an IT consultant operating through his company named Bing Ltd. The income Bing Ltd receives is classified as PSI as it was mainly for his knowledge, skills and expertise.

    In an income year, Binglei on behalf of Bing Ltd, designs software for two different clients, for which he receives a total of $100,000:

    • the first client, ABC Pty Ltd, is charged $70,000
    • the second client ABC Telecommunications Pty Ltd, (a company owned by the first client) is charged $30,000.

    Bing Ltd has received more than 80% of the PSI from one client – as the first client and second client together have provided 100% of his PSI, and both clients are associated and treated as one client for the purposes of PSI.

    End of example

    Next steps:

    See also:

    Last modified: 30 Mar 2017QC 46015