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14 Personal services income 2025

Complete question 14 in the supplementary tax return to declare personal services income (PSI).

Last updated 27 May 2025

Things you need to know

Declare at this question personal services income (PSI), it's income that is mainly a reward for an individual's personal efforts or skills.

There are certain types of income that aren't PSI. For example, for supplying or selling goods, such as, from retailing, wholesaling or manufacturing.

There are special rules, 'the PSI rules' for the tax treatment of PSI sole traders earn, including contractors and consultants. You'll be subject to the PSI rules if you aren't conducting a personal services business.

If you earn PSI as a sole trader and you're subject to the PSI rules, you won't be able to claim certain deductions. For example, rent, mortgage interest, rates or land tax for your home, or payments to your spouse (or other associate) for support work such as secretarial duties.

Before you can complete this question, read Business and professional items schedule instructions 2025. If this applies to you, you should lodge your tax return using myTax or a registered tax agent. If you're unable to use myTax or a registered tax agent, contact us and we will send you a paper tax return that includes the Business and professional items schedule 2025.

The following guides and tools will help you to understand PSI:

  • Personal services income tool – will help you decide whether you're conducting a personal services business and how to get more information about PSI issues.
  • Taxation Ruling TR 2022/3 Income tax: personal services income and personal services businesses
  • Taxation Ruling TR 2003/6 Income tax: attribution of personal services income
  • Taxation Ruling TR 2003/10 Income tax: deductions that relate to personal services income.

If you don't receive income for personal services you provide as a sole trader, go to question 15 Net income or loss from business 2025.

What you need to answer this question

You'll need:

Completing your supplementary tax return

To complete this question, review and answer the following.

Part A

You need to read and complete the Business and professional items schedule 2025 and Individual PAYG payment summary schedule.

Follow the steps.

Step 1

Complete the Business and professional items schedule 2025, see Business and professional items schedule instructions 2025.

Step 2

If you receive PSI from which tax is withheld, complete the Individual PAYG payment summary schedule. For help completing the schedule, see Individual PAYG payment summary schedule instructions.

Attach your Individual payment summary schedule to your tax return.

Print X in the Yes box at Taxpayer's declaration – question 2.

Step 3

Did you write an amount at P1 – label A in your Business and professional items schedule 2025?

Part B

If you wrote your net PSI at P1 – label A in Part B of your Business and professional items schedule 2025, follow the steps.

Step 1

Transfer your net PSI or loss you show at P1 – label A in the Business and professional items schedule 2025 to question 14 – label A in your supplementary tax return. Don't show cents.

Step 2

If you make a loss, print L in the LOSS box at label A.

Step 3

If you make a loss from one or more business activities, complete P3 Number of business activities and P9 Business loss activity details in the Business and professional items schedule 2025.

If you carry on a business as a special professional (for example an author or active sportsperson), you must also write the amount of income you receive from these business activities at question 24 Other income 2025 – label Z. You won't pay tax twice on this income.

Part C

If you have tax withheld from your PSI, follow the steps.

Step 1

Did you include an amount at P1 – labels M, N or O in the Business and professional items schedule 2025?

Step 2

Do you have amounts of tax withheld under a pay as you go (PAYG) voluntary agreement?

  • No – Go to Step 3.
  • Yes – Read on.

Add up all the amounts on your Individual PAYG payment summary schedule at the Tax withheld boxes with a V in the TYPE box. These amounts must relate to the payments you show at P1 – label M in the Business and professional items schedule 2025.

Write this amount at question 14 – label G in your supplementary tax return. Don't show cents.

Step 3

Are amounts of tax withheld because an ABN isn't quoted?

  • No – Go to Step 4.
  • Yes – Read on.

Add up all the amounts on your Individual PAYG payment summary schedule at the Tax withheld boxes with an N in the TYPE box. These amounts must relate to the payments you show at P1 Personal services income (PSI) – label N in the Business and professional items schedule 2025.

Write this amount at question 14 – label H in your supplementary tax return. Don't show cents.

Step 4

Are amounts of tax withheld because you receive PSI from either:

If you answer:

Add up all the amounts on your Individual PAYG payment summary schedule at the Tax withheld boxes with an S in the TYPE box. These amounts must relate to the payments you show at P1 Personal services income (PSI) – label O in the Business and professional items schedule 2025.

Write this amount at question 14 – label J in your supplementary tax return. Don't show cents.

Checks before moving to the next question

Check that you:

  • complete the Business and professional items schedule 2025
  • transferred the amount from P1 – label A in the Business and professional items schedule 2025 to question 14 – label A in your supplementary tax return. If this amount is a loss, print L in the LOSS box at label A.

If you receive PSI from which tax is withheld, also check you:

  • complete your Individual PAYG payment summary schedule and attach it to your tax return
  • written amounts at question 14 – labels G, H and J, if required.

Where to go next

QC104259