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AnnasTax(Initiate)Initiate
21 Oct 2025

This is the first year I had earned some Personal Services Income and I have received the error message "personal services income amounts are not required".


The solution to this error message (as given in another thread on here) is apparently to enter PSI income amounts as Business income, when PSI rules do not apply. However, information on the ATO website clearly states that if you have PSI income it must be entered as PSI, even if PSI rules don't apply. They also say sole traders receiving PSI should complete the PSI section of the tax return. See (my bolding):


If you are earning PSI, then you need to report this as PSI in your tax return even if you are a personal services business (PSB) and the PSI rules don't apply to you.


Individual tax return (sole traders)

If you're operating as a sole trader, you report any PSI you've received in your individual tax return. You can do this online through myTax or via a registered tax agent.

If you're using myTax to lodge your tax return, you need to complete the PSI section.

You may also need to complete the Business payment summaries section.


So, there seem to be conflicting lines of advice from ATO - on the one hand "you must enter PSI in PSI section", and on the other, as solved on the phone (presumably with the ATO?) according to the other thread I have consulted on here "Your business income is considered Business Income, not PSI, if PSI rules don't apply". Feeling confused, and hesitant to just enter PSI in Business Income. Seeking confirmation that PSI gets entered as a manually calculated total in the Business Income section.


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James123(Newbie)Newbie
22 Oct 2025

Hi, I’m having the same issue this year.

I’m a sole trader and some of my income is PSI. The TPAR info-only section shows my payments, but when I try to enter them manually in the PSI section, I get the error:

“Personal services income amounts are not required.”

It seems myTax doesn’t handle manually entered TPAR income + PSI correctly. I saw in another forum post that this issue was resolved by someone who confirmed with an ATO phone agent that if PSI rules don’t apply, the total income can be entered as Business Income.


Would be good if the ATO could clarify the correct approach for this situation.

AnnasTax(Initiate)Initiate
27 Oct 2025

Hi @James123,


I ended up declaring that I had PSI, but then not entering the amounts in the PSI section. I put them in the manually calculated Business income section (as suggested on the other forum). That removed the error for me. I think possibly the confusion comes from the fact that you have to respond to the PSI questions to declare you received that kind of income, but then if the PSI rules don't apply (which they did not in my case, and presumably yours), you enter the income as business income (sole trader).


I think the ATO should clarify this particular situation with some black-and-white instructions on their website, as it is clearly a situation that many people must find themselves in. Anyway, I hope that was right, and it did allow me to lodge my return!

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"Personal services income amounts are not required" error - further question | ATO Community