• Do your clients earn personal services income?

    We have been working with you and small businesses, including companies, trusts and partnerships to help them understand how earning personal services income (PSI) can affect their tax obligations as an individual and as a business.

    When discussing your clients' business entity structures and before completing their tax returns, let your clients know that:

    • their income is PSI when more than 50% of the amount they receive for a contract is for their labour, skills or expertise.
    • they can earn PSI as sole traders or as individuals operating through a company, trust or partnership.

    Use our personal services income tool to help you and your clients work out if they are earning PSI and if the PSI rules apply to them.

    See also:

    Last modified: 12 Sep 2017QC 53268