Your PSI (Personal Services Income) Questions

Your PSI (Personal Services Income) Questions - Answered

Рет қаралды 6,762

Күн бұрын

Are you a contractor, freelancer, or sole trader struggling to understand ATO's rules on personal services income (PSI)?
You're not alone - many small business owners are in the same boat.
But don't worry, we're here to help.
In today's video, we'll answer some of the most frequently asked questions about PSI.
And help you figure out if the rules apply to you and how to comply with them.
Stay tuned!
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Thank you for watching this video. I post videos on this channel to provide the latest and most frequently asked business questions. Please take a second to say hi in the comments below. Also, if you enjoy the video and find it valuable, subscribe to the channel, like and share it with anyone who you think might find my channel useful!
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Davie has over 10 years experience in advising businesses in management accounting and taxation issues. He heads up a passionate team at Box Advisory Group who are dedicated to offering proactive and outstanding service to our clients.
Davie’s extensive experience in providing tax and consulting advice and astute business knowledge has paved the way for success for many businesses.
He is a member of the Chartered Accountants Australian and New Zealand, a member of the Australian Tax Practitioners Board and holds a Bachelor of Commerce degree from the University of New South Wales.
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Website: boxas.com.au/
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DISCLAIMER: Please note that every effort has been made to ensure that the information provided in this video is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available to contractors and small businesses. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal or tax advice. You should, where necessary, seek your own advice for any legal or tax issues raised in your business affairs.
Video produced by Social Wave
www.socialwave.com.au

Пікірлер: 14

@geronimofeliziani4872 Жыл бұрын

thank you

@tysont2380 Жыл бұрын

How does the bookeeping work when attributing the psi income to the individual would the income be coded against an expense called PSI in the companies p and l

@agentdark64 Жыл бұрын

Hello, if the PSI rules apply and you are a PSE (Personal services entity) if you pay wages before the 14th day after the end of the PAYG period, does this have to include superannuation? I've heard it's only wages after 14 days after the PAYG period that actually have SG liability. Is this true?

@agentdark64 Жыл бұрын

Hello davie, a question. If you recieve $100,000 in psi income and the company only receives this and has one sole director/employee, has $4000 in allowable psi deductions, and pays let's say $98000 in wages. Would this be what they call a psi net loss? There would be a loss of $2000 right. Would the correct way to declare this on the company tax return is still filling out section 14 psi and then reconciling $2000 as a deduction to the individual. Etc the company should not have a $2000 net loss on its company tax return.

@DavieMach Жыл бұрын

Hey, it is best to engage an accountant for this question as we cannot go into detail on this on YT without knowledge of the financial data and situation. Thank you

@micamclachlan Жыл бұрын

I'm wondering at what annual income is it beneficial to do things under a PSI. As a software support technician / construction Draftsman, all my work is done from my PC using my know-how. I'm new to going full-time sole trading. My accountant says everything has to be done under my own name but there has to be an income threshold where I go looking for a better accountant.

@DavieMach Жыл бұрын

have a watch of our video called when to setup a company structure. But its probably best you book in a free consultation with the team at boxas.

@kundaigotore992 11 ай бұрын

I work as massage therapist but as a contractor. Does PSI apply to me?

@tysont2380 Жыл бұрын

So if your a sole trader plumber who's invoices are more than 50% for your labour you would be classified as psi. So if you hire someone completely at arms length to do admin bookeeping etc those wages are not deductible?. Or even if your invoices are psi but you meet the requirements of a psb the wages would be deductible

@geronimofeliziani4872 Жыл бұрын

I believe what they meant is that is not deductible if it is an associate of yours like your partner, if it is a random person just hired as an employee, it would be ok to put all their payments as wages to offset the income

@AdamAdam-ef5ud 10 ай бұрын

You forget to mention the below You must be paid to produce a specific result. You are required to provide equipment or tools (if required). You are required to fix mistakes at your own cost. If you pass all the above then you are not categorised as PSI

@thetruth00 2 ай бұрын

Could you please clarify. What about in this case.. I build custom spreadsheets for companies and they pay me a subscription to upkeep and update these spreadsheets. If I make a mistake I have to fix it at my own cost. Does that count as PSI?