You must complete this question if you provided personal services and you:
- received a PAYG payment summary – business and personal services income showing an X against 'Personal services attributed income', or
- had personal services income attributed to you.
Personal services income (PSI) is income that is mainly a reward for your personal efforts or skills and is generally paid either to you or to a personal services entity (a company, partnership or trust).
If your PSI is paid to a personal services entity, the income (less certain deductions relating to gaining or producing that income) is attributed to you unless:
- the personal services entity gained the income in the course of conducting a personal services business, or
- the income was promptly paid to you by the entity as salary.
If the personal services entity has a net loss relating to your PSI, then no amount is attributed to you. To claim a deduction for the loss, see the supplementary tax return question D15 Other deductions – not claimable at questions D1 to D14 or elsewhere onin your tax return 2023.
There is an explanation of the rules relating to the attribution of PSI in TR 2003/6 Income tax: attribution of personal services income.
If you received PSI as a sole trader, do not complete this question. You must:
- answer the supplementary tax return question 14 Personal services income 2023, and
- complete question P1 Personal services income in the Business and professional items schedule for individuals 2023.
If this applies to you, then you should lodge your tax return using myTax or a registered tax agent.
If you are unable to use myTax or a registered tax agent, contact us and we will mail you a paper tax return and Business and Professional items schedule.
Did you receive any attributed personal services income?
You will need:
- your PAYG payment summary – business and personal services income
- details of any other PSI attributed to you.
If you do not have this information, contact the person who paid you.
To complete this question, follow the steps below.
Write the total amount of tax withheld from the PSI attributed to you under Tax withheld at the left of question 9 – label O.
Write the total amount of PSI attributed to you at question 9 – label O.
- Go to Total tax withheld 2023.
- Return to main menu Individual tax return instructions 2023.
- Go back to question 8 Australian superannuation lump sum payments 2023.