What can you claim PSI?

Allowable deductions when receiving PSI

• gaining work – for example, advertising, tendering and quoting for work.
• registration and licensing fees.
• insuring against loss of income, earning capacity or liability for acts or omissions in the course of earning income.
• public liability and professional indemnity insurance.

What are attributed personal services income?

mainly a reward for your personal efforts or skills. generally paid either to you or to a personal services entity (a company, partnership or trust).

Does PSI pay for cleaning?

Absolute Domestics do not pay you wages or salary. They merely direct you to clients who pay you directly. You will have at least 3 or more clients.

Do PSI rules apply to sole traders?

The PSI rules affect any person who provides consulting, professional or other services in a contracting arrangement, either as a sole trader or through a separate entity (eg. a company), rather than being employed directly by the customer.

How do I know if my income is PSI?

When working out if your income is PSI, you need to look at the income received from each separate contract or invoice. If more than 50% of the income received for a contract/invoice was for your labour, skills or expertise, then all income received is PSI.

Is JobKeeper included in PSI income?

Receiving Personal Services Income, whether you pass PSI Tests or not, does not preclude you from receiving JobKeeper Payments. As a sole trader, you may be eligible to receive JobKeeper Payments for your employees AND for yourself as a business participant if you also satisfy the integrity rules.

Is Super payable on PSI income?

The PSI rules also don’t affect deductions for super contributions that are made for yourself. The term ‘super contributions’ refers to contributions you make to a super fund or retirement savings account (RSA). Deductions for super contributions are subject to other tax rules.

Are bookkeepers PSI?

If you get employees, partners of a partnership or contractors to perform at least 20% of the principal work that doesn’t include incidental work such as bookkeeping or running from a home office, or have one or more apprentices for at least half of the income year, then your income is not categorised as PSI.

Can PSI claim instant write off?

Answer: Yes. If your income falls under PSI Rules, it does not mean you are not carrying on a business. You can still apply Simplified Depreciation Concession (including instant asset write-off) if you satisfy Small Business eligibility criteria.

Can PSI claim immediate write off?

So you are allowed to claim car expenses when the income is PSI and that would include the depreciation or in your case immediate write off of the car. To qualify for the immediate write off you have to be a small business and that you certainly are.

Can a PSI company make a loss?

If the personal services entity has made a net PSI loss: the individual is entitled to a deduction for the loss, and. the total amount of the deductions to which the entity is entitled is reduced by the amount of the individual’s deduction for the loss.

Can psi receive JobKeeper?

What are the special tax rules around psi?

There are special tax rules around PSI to improve the integrity and equity of the tax system. They prevent people from reducing or deferring their income tax by diverting income they’ve received from their personal services through companies, partnerships or trusts.

How do I get a PSB determination from ATO?

A PSB determination can only be issued if you access the tool through our online services for individuals. If the tool is unable to issue you with a PSB determination, you may request to be contacted by an ATO officer who will issue you with a notice of decision.

Who can receive psi?

You can receive PSI in almost any industry, trade or profession. However, some common examples include financial professionals, information technology consultants, engineers, construction workers and medical practitioners. PSI does not affect you if you’re an employee receiving only salaries and wages.

What if the PSI rules don’t apply to my business?

If the PSI rules don’t apply, your business is a personal services business (PSB). When you’re a PSB, there are no changes to your tax obligations, except that you need to declare any PSI on your tax return. You can receive PSI even if you’re not a sole trader.