Personal services income: a refresher
Individuals or those with companies that earn income through personal effort and skills should be familiar with the concept of personal services income (PSI). This includes tradespeople but also for consultants that work in a wide variety of fields. Earning PSI is not an ideal outcome as it can limit the deductions you can claim. However, this situation can be potentially avoided if you satisfy the criteria for a personal services business (PSB) or apply to the ATO for a Personal Services Business Determination.
