Unrelated clients test
To pass the unrelated clients test your PSI must be produced from two or more clients who are not related or connected, and the work must be obtained by making offers to the public or sections of the public.
You pass the test in an income year if you meet both of the following conditions:
You do not pass the unrelated clients test if you source all your work through arrangements such as a labour hire firm.
Two or more unrelated clients
To satisfy this condition, you must have received the PSI from two or more unrelated clients.
Unrelated clients are clients who aren't associated with each other and aren't associated with you. Companies in the same group are related as they are controlled by the same entity.
Making offers to the public
To satisfy this condition, there must be a definite connection between the offer to the public and the engagement for the work.
Making offers to the public (or a section of the public) includes: maintaining a website, applying for competitive public tenders, or advertising in a newspaper, industry journal or business directory.
The unrelated clients test is used to work out if your PSI is produced from two or more clients who are not related or connected, and if the work was obtained by making offers to the public.