My daughter is 18 yrs old and just started on contract to tutor the students. Income just below$4,000. First time to lodge tax return for 2024. She works under ABN to receive income on hourly basis.
Where does she need to add her income whether Sole trader or under PSI? can she get deduction also?
The income is PSI but to determine whether it is recorded in the PSI section or business section you need to determine if the PSI rules apply. See this link on PSI
myTax 2024 Personal services income | Australian Taxation Office (ato.gov.au)
If she is contracted by a third party to provide the services then the PSI rules will probably apply. If she is contracted and paid by parents directly then it would probably be a PSB (personal services business). Rules then don't apply
If the rules apply then income and deductions are claimed at the PSI section. If there is no payment summary provided these are entered at "other" .
If PSI rules don't apply enter income and expenses on business schedule.
Thanks for the reply. Still under confusion. My daughter works on contract/ casual basis under her own ABN, directly paid into bank on hourly basis by a teacher who runs main tutor business and 50% hourly charges being paid to my daughter. No other income earned for this FY. No tax withheld, no super. No PAYG payment summary issued. Just money deposited into bank account. So where should this income be included?
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