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Personal Service Income

Newbie

Views 381

Replies 1

I saw on tax return, ATO would like to know whether you are on PSI.

 

So what is the disadvantage to being a PSI? Tax rate higher than business income?

 

For example,

A GP, is a PSI, but GP registered a company, so GP will not on the 27.5% company tax rate, and will be on marginal individual tax rate?

 

A GP, is a PSI, but GP did not register a company, she relies on an ABN number, so this will be on marginal individual tax rate?

 

A bulldozer driver, is not a PSI, he did not register a company, he holds an ABN,  tax rate will be 27.5% or be on marginal individual tax rate?

 

Confusing...

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @cool 

 

The PSI rules can still apply to individuals who structure their business as a company, trust or partnership. The income considered PSI is attributed to their individual tax return and not the business.

I also answered your other post about Business income and PSI.

 

Thanks, Ari

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @cool 

 

The PSI rules can still apply to individuals who structure their business as a company, trust or partnership. The income considered PSI is attributed to their individual tax return and not the business.

I also answered your other post about Business income and PSI.

 

Thanks, Ari