What is personal services income?

Personal services income (PSI) is income earned by an individual outside of employment. The Australian Taxation Office has rules around what determines income outside of employment. Currently if more than 50% of the income received was for labour, skills or expertise, as opposed to product, it’s classified as PSI. For tax purposes PSI is treated as your individual income.

 

Related terms:
What is sole proprietorship?
What can I write off on my taxes?

Accounting Terms

Accounting terms and how-tos for beginners. Let us walk you through all the basics that you need know.

What is personal services income?

Personal services income (PSI) is income earned by an individual outside of employment. The Australian Taxation Office has rules around what determines income outside of employment. Currently if more than 50% of the income received was for labour, skills or expertise, as opposed to product, it’s classified as PSI. For tax purposes PSI is treated as your individual income.

 

Related terms:
What is sole proprietorship?
What can I write off on my taxes?

Showing 35 more questions for all topics