Stop: Do not show in part B PSI amounts that were subject to foreign resident withholding. Show these at item P8.
You need to know
You must complete part B of item P1 if you received PSI and you did not:
- receive a personal services business determination in relation to your PSI
- satisfy the results test, or
- satisfy at least one of the other three personal services business tests (if less than 80% of your PSI came from each client).
PSI is divided into:
- income that was subject to a PAYG voluntary agreement to withhold tax
- income from which tax has been withheld because you did not quote your Australian business number (ABN) to one of your payers
- income received under a labour hire arrangement or from a specified payment, and
- other PSI.
Goods and services tax
If you are registered or required to be registered for goods and services tax (GST), do not include any GST amounts in your assessable income. Your deductions should not include any amounts that relate to input tax credit entitlements.
STS taxpayers
If you have chosen to enter or continue in the STS at item S1, you must complete the income and deduction parts of item P1 using the STS rules. For information about these rules, read STS taxpayers. If you are claiming STS depreciation, you also need to complete item P10 on your schedule.
You may need to complete an Individual PAYG payment summary schedule 2006-07
If tax has been withheld from business income you should have received a payment summary.
You will need to complete the Individual PAYG payment summary schedule 2006-07 before completing the rest of item P1 if you received any of the following payment summaries:
- Payment summary - voluntary agreement
- Payment summary - withholding where ABN not quoted
- Payment summary - labour hire and other specified payments.
A payer may issue a receipt, remittance advice or similar document in place of the Payment summary - withholding where ABN not quoted. This document must contain the same details as the payment summary and be signed by the payer.
If you received income from which tax was withheld and you did not receive or have lost your payment summary, contact your payer and ask for a copy.
How to complete the Individual PAYG payment summary schedule 2007
Step 1 Write your tax file number (TFN) and name in the appropriate boxes at the top of the schedule.
Step 2 Nature of income - Print X in the Personal services income box.
Step 3 For each payment summary, transfer the following information to the schedule:
- the type of withholding - look at your payment summary carefully to determine its type and complete the TYPE box, using the following key:
- V voluntary agreement
- N withholding where ABN not quoted
- S labour hire or other specified payments
- the payer's ABN or withholding payer number (WPN) and the payer's name in the appropriate boxes
- the total tax withheld in the Tax withheld box
- the gross payment in the Gross payment box.
Step 4 Check that you have recorded details from all relevant payment summaries on your payment summary schedule then attach the schedule to page 3 of your tax return.
Do not attach the payment summaries to your tax return. You must keep them for a period of five years.
Payers must report to the ATO details of payments where amounts of tax have been withheld. This information will be cross-checked with that on your tax return to ensure that you have declared the correct amount of income and the correct amount of tax withheld.
You may need two payment summary schedules.
If you have both PSI (item P1) and business income (item P8), you will need to complete an individual PAYG payment summary schedule for each type of income.
Income
PSI - voluntary agreement
Did you receive any PSI that was subject to a PAYG voluntary agreement?
No |
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|---|---|
Yes |
Read on. |
The amount you show at M is the total income you received that was subject to a PAYG voluntary agreement, including amounts of tax withheld. You will be able to calculate this amount from your completed payment summary schedule.
Completing this item
Add up all the Gross payment amounts on your completed payment summary schedule that have a V in the corresponding TYPE box. Write the total at M item P1. Do not show cents.
If you complete M item P1 you must also complete G item 13 on page 9 of your tax return (supplementary section).