PSI/PSB- professional profits

Personal services income (PSI) is an often misunderstand tax rule requiring individuals that earn more than 50% of their income from personal skill and effort to be taxed as if they were an employee. In this episode we walk through the, sometimes complex, rules around who is subject to the Personal Services Income rules. Sarah and Trudi will take you through the various tests that can exempt you from the PSI to treat you as a Personal Services (PSB) and some of the complexities around applying these tests. If you earn your income from your labour (as opposed to product) this is a must listen to episode to ensure that you are aware of the rules that potentially apply to you.

More info: https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income

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Just two industry experts having a friendly chat and sharing our knowledge. We aim to raise your knowledge base and dis-spell any myths surrounding finance. tax and a range of other financial topics. This is a safe space to ask questions and hear useful info on financial matters.

Read more about FOFU here and check us out online here

And, if you'd like to leave us a message, or suggest a topic, you can do so here

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DISCLAIMER- The information and material in this podcast, and supplementary and associated information available, is for general information only. It should not be taken as constituting professional advice from the podcast owners, and we recommend you seek independent suitable advice that is specific to your unique circumstances

What is Finance Fofu

Financial FOFUBy Sarah Eifermann and Trudi Cowan Nov 09, 2020