Personal Services Income/Personal Services Business – The Tax Implications
Overview
Personal Services Income: the impact of the special rules to small businesses, including where the business is a personal services business
The Personal Services Income (PSI) rules can present a major challenge for contractors and other self-employed business owners and are a constant focus of compliance attention at the ATO. Ensuring that the rules are correctly applied and the tax implications are properly understood and implemented should be a high priority for all advisers dealing with small business clients.
This session provides a point-by-point guide to understanding and applying the PSI rules, illustrated with practical examples and an overview of the latest ATO guidance and case law. The session also considers what the impact is if the business is earning personal services income but the special rules don’t apply – a personal services business.
During the session, you will be guided through the following topics:
- What is the intent of the PSI rules?
- Determine what is PSI
- Understand and apply the various tests
- What are the tax consequences where the PSI rules apply?
- Does it make a difference if the PSI rules don’t apply?
- What is a Personal Services Business and what are the tax implications?
- Diversion of income to associates – is it ever permitted?
- ATO guidance and recent case law
Learning Outcomes:
Participants will gain a detailed understanding of the intent, application and consequences of the special rules that apply to businesses which earn personal services income.
Suited to:
The session is ideal for the development of staff within tax agent and accounting practices who deal with individual clients and small businesses.
This On Demand Includes:
- Recording of the Live Webinar, which can be viewed multiple times
- PowerPoint Presentation
- Verbatim Transcript, with Searchability
- Supporting Documentation
- CPD Quiz
- CPD Certificate
Course syllabus
3 lessons
- Video – Personal Services Income/Personal Services Business – The Tax ImplicationsVideo
- Feedback Survey 2024Survey
- Knowledge QuizTest
Your presenter
Presenter:H&R Block
Mark Chapman, Tax Communications Director, H&R Block.
Since 2015, Mark has been Director of Tax Communications with H&R Block Australia. He writes regularly on tax issues for numerous media outlets and presents on topical tax topics at seminars and other events. He broadcasts frequently on radio and television and writes a regular column for Money Magazine and Yahoo7 Finance. As a tax practitioner in the UK, he occupied a number of senior positions before moving to Australia in 2007 to join the Australian Taxation Office (ATO) as a senior director.
Mark is the author of Life and Taxes: A Look at Life Through Tax and has edited and updated the second through to the seventh editions of Australian Practical Tax Examples, published between 2019 and 2024, by Wolters Kluwer CCH Australia.