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Babybee(Newbie)Newbie
25 July 2024

Hi,

I am a sole director and employee of my XYZ company. The company received a total PSI income of $45k. I am also working as an employee for ABC Pty Ltd. My annual wages is $55k. Does it satisfy the unrelated clients PSI test?

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312 views
1 replies

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Most helpful reply

Matt_ATO(Community Support)Community Support
29 July 2024

Howdy @Babybee,


Using the Unrelated clients test, if:


  • Ensure that the $45k PSI from XYZ Company comes from at least two clients who are not related to each other or to you.
  • The clients must have engaged your services as a result of an offer to the public, such as advertising your services.

If both conditions are met, you can self-assess as a personal services business (PSB), and the PSI rules will not apply to the PSI earned by XYZ Company.


All replies

Most helpful reply

Matt_ATO(Community Support)Community Support
29 July 2024

Howdy @Babybee,


Using the Unrelated clients test, if:


  • Ensure that the $45k PSI from XYZ Company comes from at least two clients who are not related to each other or to you.
  • The clients must have engaged your services as a result of an offer to the public, such as advertising your services.

If both conditions are met, you can self-assess as a personal services business (PSB), and the PSI rules will not apply to the PSI earned by XYZ Company.


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