ATO releases new guidance on the PSI rules The ATO has recently updated its guidelines on the operation of the personal services income (PSI) and personal service business (PSB) rules. These highly prescriptive rules took effect from the 2000-01 income year after the government became concerned that the income tax base was being eroded through […]
ATO’s New Guidelines On The PSI Rules Read More »
What is Personal Services Income? The personal services income (PSI) rules apply to income that is earned mainly from the personal efforts or skills of a person. It does not matter whether the income is earned by the individual in their own name or through an entity such as a business. The rules do not
Personal Services Income In Detail Read More »
Arrangements on personal services income diverted to SMSFs The ATO has announced that it is reviewing arrangements where members of an SMSF (typically at, or approaching, retirement age) purport to divert income earned from their personal services to their fund, which results in minimising or even avoiding tax altogether on that income. The ATO says
Diverting Personal Services Income To Self-Managed Super Funds Read More »
What is personal services income? Many professional people who provide services set up a separate entity to run their business, be it a trust, partnership or incorporated company. The purpose, of course, is the lower tax rate that these can secure, rather than at the top marginal tax rate that an individual would generally wear.
Personal Services Income (A Quick Overview) Read More »