Item 14 - Personal services income

PSI is income that is mainly a reward for an individual's personal efforts or skills (or would mainly be such a reward if it was derived by the individual). A company may derive income which includes the PSI of one or more individuals.

See the ATO websit for further information on:

Personal services income on the ATO website for further information.
Personal services business determination application

Label N - Does your income include an individual's personal services income?

If your answer to this question is No, we'll close all the labels at item 14 and move the cursor to item 15.

Label A - Total amount of PSI included at item 6 income labels

To open label A you must answer Yes to the the question at label N

A Generic Schedule / Worksheet if provided for dissection and record keeping purposes.

By keying a meaningful description for each Generic schedule you create, you will be better able to identify with certainty the schedule if you need to delete it. Preparation > Delete Schedules.

Label B - Total amount of deductions against PSI included at item 6 expense labels

To open label B you must answer Yes to the the question at label N

A Generic Schedule / Worksheet if provided for dissection and record keeping purposes.

By keying a meaningful description for each Generic schedule you create, you will be better able to identify with certainty the schedule if you need to delete it. Preparation > Delete Schedules.

Adjustments relating to non-deductible expenses and attributed PSI are included at:

Non-deductible expenses item 7 label W.
Other income not included in assessable income item 7 label Q.

Label C - Do you satisfy the results test in respect of any individual?

You will meet the results test in an income year if for at least 75% of the PSI of the individual doing the personal services work, having regard to the custom or work practice when work of that kind is performed:

the PSI is paid to achieve a result under your contract or agreement
you provide the tools or equipment necessary (if any) to do the work, and
you are liable for the cost of rectifying defects in the work performed.

Answer Y or N as required.

Label D - Do you hold a personal services business (PSB) determination(s) in respect of any individual?

To apply for a personal services business determination see Personal services business determination application. If your income is the PSI of more than one individual, you can apply for a determination for each of those individuals.

Answer Y or N as required.

Labels E1, E2 and E3

E1, E2 and E3 should be completed for any individual for whom you did not satisfy the results test or hold a PSB determination, and where each source of their PSI income yielded less than 80% of their total PSI.

If 80% or more of the PSI in the income year comes from one client (and their associates) you cannot self-assess whether you meet the unrelated clients test, employment test or business premises test. Under these conditions, do not complete E1, E2 and E3.

See Company instructions (worksheet 2) on the AtO website for further information.

CCH References

30-600 Summary of PSI regime