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Part B You need to know

Last updated 17 February 2020

You must complete part B of item P1 if you received PSI and you did not:

  • receive a personal services business determination in respect 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 comes from each client.

PSI is divided into:

  • income that was subject to a PAYG voluntary agreement to withhold
  • income from which tax has been withheld because you did not quote your Australian business number (ABN)
  • income received under a labour hire arrangement or from a specified payment
  • other PSI.

STS taxpayers

If you are eligible to enter or continue in the STS and you have chosen to do so at item S1, you must complete the labels at item P1 using the STS rules. (This applies to amounts of income and deductions shown at these labels.) For information about these rules, read the section STS taxpayers at item P8 and the note on depreciation. If you are claiming STS depreciation, you also need to complete item P10 on your schedule.


If you are registered or required to be registered for 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.

What you may need

If tax has been withheld from business income you should have received a payment summary.

If you received any of these payment summaries:

  • Payment summary – withholding where ABN not quoted
  • Payment summary – voluntary agreement
  • Payment summary – labour hire and other specified payments

you will need to complete the Individual PAYG payment summary schedule 2004 before completing item P1.

A payer may issue a receipt, remittance advice or similar document in place of the Payment summary – withholding where ABN not quoted.

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.