Personal Services Income (PSI) Analyser

Your Details

Annual gross income from contract/freelance (AUD) Income from a single client (%) If ≥ 80%, 80% test applies Structure type Current tax residency

PSI Gateway Tests

Answer each question honestly. The ATO applies these four tests to determine if income is PSI. Passing even one test (other than the results test) may mean the rules don't apply.

Test 1 — Results Test (Gateway — if passed, PSI rules don't apply)

Are you paid for achieving a specific result/outcome (not just time)? Do you supply your own tools/equipment for the work? Are you liable to fix defective work at your own cost?

Test 2 — 80% Rule (If ≥ 80% from one client, must pass another test)

Does ≥ 80% of your income come from a single client?

Test 3 — Unrelated Clients Test

Do you provide services to 2+ unrelated clients from offers made to the public? Do you advertise to the general public (website, ads, directories)?

Test 4 — Employment Test

Do you employ others who earn ≥ 20% of total PSI income?

Test 5 — Business Premises Test

Do you maintain your own business premises (not home office) used mainly for PSI work? Are your premises separate from clients' premises?

PSI Analysis Result

Key PSI Deduction Restrictions (if PSI applies)

Rent / mortgage on home: Not deductible against PSI income
Interest on home mortgage: Not deductible against PSI income
Salary to associates: Only deductible up to the market rate for actual work done
Super contributions for associates: Subject to same restrictions
Entertainment expenses: Not deductible as PSI deductions
Obligations / withholding: If using a company/trust, PAYG withholding may be required

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