• Part A

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Did you satisfy the results test?

    If you earn PSI, you satisfy the results test in the income year if, in respect of at least 75% of this income, you can answer Yes to all of the following three questions in relation to your work:

    • Under your contract or arrangement, was the PSI paid to achieve a specified result or outcome?
    • Did you have to provide the tools or equipment necessary (if any) to do your work? (If no tools or equipment were required, answer Yes.)
    • Were you liable for rectifying defects in your work?

    No, Print X in the No box at P item P1 on your schedule. Read on.

    Yes, Print X in the Yes box at P item P1 on your schedule. Go to P2 Description of main business or professional activity.

    Have you received a personal services business determination from the Commissioner that was in force for the whole of the period you earned PSI?

    This is a notice from the Commissioner stating that you are conducting a personal services business. If you have a personal services business determination from the Commissioner, the PSI rules do not apply to your PSI and deductions.

    No, Print X in the No, box at C item P1 on your schedule. Read on.

    Yes, Print X in the Yes box at C item P1 on your schedule. Go to P2 Description of main business or professional activity.

    Did you receive 80% or more of your PSI from one source?

    If you don't satisfy the results test and 80% or more of your PSI in the income year came from one client, you cannot self-assess whether you satisfy the other personal services business tests. The PSI rules apply to you unless you get a determination from the Commissioner.

    If you don't satisfy the results test, you can self-assess against the other tests only if less than 80% of your PSI came from each client.

    You should consider PSI obtained by merely putting your name with a labour hire firm, placement agency or similar organisation, as income from one client.

    Commission agents

    Special rules apply to commission agents. For more information, phone the Business Infoline on 13 28 66.

    No, Print X in the No box at Q item P1 on your schedule. Read on.

    Yes, Print X in the Yes box at Q item P1 on your schedule. Go to Part B.

    Did you satisfy the unrelated clients test?

    You will satisfy the unrelated clients test in the income year if you can answer Yes to the following question:

    Did you receive PSI from two or more clients who are not associated with each other or with you?

    You must also provide the personal services work as a direct result of making offers to the public (for example, by advertising or word of mouth). Do not count clients obtained by merely registering with a labour hire firm, placement agency or similar organisation.

    No, Read on.

    Yes, Print X in the box at D1 item P1 on your schedule. Read on.

    Commission agents

    Special rules apply to commission agents. For more information, phone the Business Infoline on 13 28 66.

    No

    Read on.

    Yes

    Print X in the box at D1 item P1 on your schedule. Read on.

    Did you satisfy the employment test?

    You satisfy the employment test in the income year if you can answer Yes to either of the following questions:

    • Did you have apprentices for at least half the income year?
    • Did you have employees or did you engage subcontractors or entities who performed at least 20% (by market value) of the principal work?

    Principal work is the main work that generates the PSI and does not usually include support work such as secretarial duties. You can count a spouse or family member who does principal work but not companies, partnerships or trusts associated with you.

    No, Read on.

    Yes, Print X in the box at E1 item P1 on your schedule. Read on.

    Did you satisfy the business premises test?

    You satisfy the business premises test if you can answer Yes to all of the following questions:

    For the whole period during which you earned PSI, were your business premises:

    • owned or leased by you
    • mainly used by you for work earning your PSI (for example, more than 50% of the use)
    • used exclusively by you
    • physically separate from your private residence or the private residence of any of your associates, and
    • physically separate from the business address of your clients or their associates?

    No, Read on.

    Yes, Print X in the box at F1 item P1 on your schedule. Read on.

    If you printed X at D1, E1 or F1, Go to item P2. Otherwise read on.

    Last modified: 01 Sep 2006QC 18499