The Personal Services Income rules apply where income is derived by a person or an interposed entity that is mainly a reward for that person’s personal efforts or skills. Where the PSI rules apply, there are limits on the deductions available and the net PSI income of the interposed entity is attributed back to the person who performed the work.
However, the PSI rules do not apply where the person or the entity is carrying on a Personal Services Business (PSB).
In this webinar, Tax & Super Australia’s Frank Drenth will examine the four tests that may be relied upon to be regarded as a PSB:
• The results test
• The unrelated clients test
• The employment test
• The business premises test.
We will also go through some of the main AAT and Federal Court cases that have considered these issues and make suggestions on how best to reduce the risk of additional tax and penalties that clients could face.