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How to fill up business and professional items in tax return

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Hi,

 

I am stumped on a particular point in my tax return and will much appreciate help on this.

 

I have been a daily rate contractor (PAYG) working in IT in FY 2018-19. One of the contracts I worked for (Jul-Nov 2018) was a personal services income. As per the myTax tool, PSI rules don't apply to me. My questions for this income are:

1) Under Business/sole trader income or loss, I have checked Personal Services Income & unchecked Business Income or Loss

When I clicked on this income, the section Business & Professional Items opened up. I have made the following choices. Could you please validate if these are correct:

2) Did any activity satisfy the results test? = No

3) Have you received a PSB determination(s) that was in force for the whole of the period you earned PSI? = No

4) Did you receive 80% or more of your PSI from one source? = Yes

 

Thanks in advance for your help

Rajat Roy

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Hi @rajat,

 

Thanks for your question, Rajat!

 

From what you've described, it seems that you've completed everything correctly so far but it really does depend on the results of that PSI tool. The PSI tool would have given you the reasons why the PSI rules do not apply to you, so as long as you have answered the questions in accordance with the results of the PSI tool, it shouldn't be an issue.

 

As an example, if the tool said that the PSI rules don't apply because you don't pass the results test, then this is what you need to complete in the tax return.

 

You can refer to our myTax guide on Personal Services income for additional information about completing that section.

 

Hope this helps,

 

Rachael B.

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Best answer

ATO Certified

Community Support

Replies 0

Hi @rajat,

 

Thanks for your question, Rajat!

 

From what you've described, it seems that you've completed everything correctly so far but it really does depend on the results of that PSI tool. The PSI tool would have given you the reasons why the PSI rules do not apply to you, so as long as you have answered the questions in accordance with the results of the PSI tool, it shouldn't be an issue.

 

As an example, if the tool said that the PSI rules don't apply because you don't pass the results test, then this is what you need to complete in the tax return.

 

You can refer to our myTax guide on Personal Services income for additional information about completing that section.

 

Hope this helps,

 

Rachael B.

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